Corporate Collapse - The demise of Enron Essay Example | Topics and Well Written Essays - 750 words

Corporate Collapse - The demise of Enron - Essay ExampleThe duration of the cypher that was expected by the ships company was 10 years and the company expected that it will generate huge amount of profit from this project. But the reality is opposite to what Enron forecasted and it had to bear huge loss in terms of pay and social image (Ahmed, 2012). The project was considered as the outsizest direct foreign investment project in Indias history but it became debacle for Enron because many countries criticized Enron for its paltry performance and fake promises (Bettauer, 2009).Enrons liquefied essential gas power plant development project stated in 1992 in Maharashtra state of India. It was suppositious to fulfill Indias energy need with more than 2000 megawatts of electricity (Ahmed, 2012). But due to various issues like dispute over prices between Indias political science and Enron and criticism of Indians on this project turned the venture into an example of what can go wron g when two different cultures collide in a large scale development project (Bajaj, 2010). The project became debacle for Enron because it produced no electricity and in 2001 the company got bankrupted.Enron Corporation in 1992 proclaimed that it would develop a natural gas power plant worth of $3 billion in Dabhol western state of Maharashtra, India. The project was expected to be the poster child of Indias economic liberalization but unfortunately it became the symbol of project failure and people consider it as a human rights nightmare and an economic failure.The project was subject of criticism from the beginning. The company worked hand in hand with dishonest Indian bureaucrats and politicians in order to complete the project but Indian world interest group filed charges against Enron and in 1993 Indian Reliance Company bribed Indian petroleum minister to secure the contract (Leuz, & Schrand, 2009). Due to this bribery