ANALYSIS OF THE
Members:
Paredes Salinas Raúl
ENRON CASE
Orbegozo Gamonal Jennifer
Castro Zelada Kory
Elorreaga Bautista Sergio
Ahumada Ahumada Luciana

Course:
International Management

Professor:
Medina Campos, Linda

 
THE TIMELINE OF…
PESTLE Analysis

1978 Entry barriers removed

Political 1985 Open access for the transport
Liberation of the energy market
factors of natural gas

1996 Liberalization of electricity

in California

Pete Wilson Timothy Belden

PESTLE Analysis

Enron Oil Co. 1987 embezzlement

Louis Borget

The scandal Vahalla Thomas Mastroeni

Economic SPE Special Purpose At the end of the 90s,

Enron uses these
Entity
factors companies as financial vehicles.
 PESTLE Analysis
The Director of the fictitiously reducing
Financial Office of Enron, he carried out illegal the company's debt
Andrew Fastow transactions

SPE Special Purpose

Entity

therefore, the Enron's image

price of the Then investors was of a
stock quotation keep investing successful
increases. company
PESTLE Analysis

Enron Oil Co. 1987 embezzlement

Louis Borget

The scandal Vahalla Thomas Mastroeni

Economic SPE Special Purpose At the end of the 90s,

Enron uses these
Entity
factors companies as financial vehicles.

California energy crisis In 1998 a process of deregulation of the electric mar

began in California
PESTLE Analysis

Strategies
for price manipulation

"Death Star" “Ricochet"

“Fat Boy"
 was based on taking
The Government of
advantage of the hours of
"Death Star" California paid
most demand of power Congestion Fees
lines

charging for it Enron obtained this for inconveniences that

money without benefit, redirected could cause electricity
having used the energy to California
electricity. congestion
 Enron sold this
Enron sent high
fictitious surplus
“Fat Boy" amounts of energy
to its subsidiaries
of energy to the
State
 on the pretext
that it was
Enron sold again
to California at a imported
higher energy
then sold this
energy out of price
the state
consisting of
the purchase
of energy
from
California
public
companies at
“Ricochet" a low
price
 Social Factors
WORKERS
This group has an interest in the company, since they worked here, they received
economic remuneration, they were on payroll, they had a career line, they worked in
one of the best companies of that time, they had job security, in other words, the
workers of this company saw a promising future when working here. But, all this
was overshadowed when the truth of the company came to light.​
After the bankruptcy of Enron more than 21000 workers in 40 countries were
dismissed, also, being Enron a large company, workers were also dismissed from
companies that depended on Enron.

 SHAREHOLDERS
This interest group was also strongly affected, since when the truth was discovered, the value
of the stock declined incredibly, going from approximately $ 90 at the end of December 2000
to $ 0.4 at the end of 2001. The investors' losses were estimated to be of 25,000 million
dollars.
CUSTOMERS
Enron took advantage of his position, some say he handled the prices as he
wanted, he raised unnecessary prices because the quality of service did not
improve, even blackouts occurred and customers went through very
uncomfortable situations that worsened with bankruptcy.

COMMUNITY

An example where the interests of the community were affected was when
Enron decided to sell 40% of its installed capacity to the so-called "independent
energy producers" affecting mainly Pacific Gas and Electric, Southern California
Edison and San Diego Gas and Electric, the which had to sell an important part
of their generation of electricity to totally private non-regulated companies.
 PESTLE Analysis

-En 1999 was launched -On the web you could buy and sell
“Enron Online” basic commercial products worldwide.

Technological
factors
-The approval of the
Telecommunications Law in 1996
-Broadband Services
-In 1997 Enron acquires
Portland General Electric
Thank You!