To understand the rise of Enron, we need to go back to the second half of the last century. Financial loopholes grow larger, leading to bankruptcy.įirst, let’s take a look at the first part: The rise of Enron. The fourth part: Financial and audit departments collectively keep silent. The third part: Profit-oriented Enron drops from its peak and declines The second part: Tradition encounters speculation. Next, we will share this book with you in the following four parts. Elkind is a writer who previously worked for The Washington Post. It was also this article that triggered the final exposure of Enron's series of scandals. In 2001, she published the article Is Enron Overpriced, which was the first article to openly question Enron's transactions. This book has two authors, Bethany McLean and Peter Elkind, who are both senior editors at Fortune. This book is also one of the 75 must-read business books recommended by Fortune. They opened Enron's closed gate for us, revealing Enron's internal working methods and decaying corporate culture. They spent 16 months on investigation and interviews. In the book, Bethany McLean and Peter Elkind used various secret documents and information from lots of well-informed people. What caused this “energy tycoon” to go bankrupt? What lessons can be learned? The Smartest Guys in the Room will fill you in all about it. And the authoritative, “Arthur Andersen” that provided auditing services for Enron had their business license revoked. A two billion dollar pension fund turned to ashes. Afterward, Enron's bankruptcy triggered a series of domino effects in which 20,000 employees lost their jobs. However, this dreamy business empire collapsed overnight it only took 24 days for it to declare bankruptcy after being exposed. It was a company that represented the "American Dream." Its market value soared from 10 billion to 65 billion dollars in 16 years. Its name was Enron.Įnron was established in 1985.
It was selected as “America’s Most Innovative Company” by Fortune for six consecutive years from 1996 to 2002. However, in the 1990s, there was also a world-renowned energy company at this time, “the seventh-largest company” in the United States. When it comes to energy companies, the first thing that comes to mind are companies such as Exxon Mobil and Royal Dutch Shell. The subtitle of this book is “The Amazing Rise and Scandalous Fall of Enron.” Today, we will unlock The Smartest Guys in the Room.
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