With EnronOnline, we are reaching a greater number of customers more quickly and at a lower cost than ever. In our total physical volumes increased significantly as a direct result of EnronOnline. While Enron was busy implementing EnronOnline they were just as busy implementing aggressive accounting practices. EnronOnline has enabled us to scale quickly, soundly and economically. Since its introduction, EnronOnline has expanded to include more than 1, of our products.
It also has streamlined our back-office processes, making our entire operation more efficient. It has reduced our overall transaction costs by 75 percent and increased the productivity of our commercial team by five-fold on average. We are not sitting still with this important new business tool — in September we released EnronOnline 2. Our retail unit is a tremendous business that experienced a break-out year in Price volatility in energy markets has drawn fresh attention to our capabilities, increasing demand for our services.
No other provider has the skill, experience, depth and versatility to offer both energy commodity and price risk management services, as well as energy asset management and capital solutions. Using Mark-to-Market accounting it largely inflated the value of the mentioned contracts.
Additionally, in a volatile market it allowed Enron to use their own methods to estimate the future price of the respective product so they could easily overestimate the unrealized profits to hide losses and continue to drive their profits. We have created a new market for bandwidth intermediation with Enron Broadband Services. In we completed transactions with 45 counter parties. We are expanding our broadband intermediation capabilities to include a broad range of network services, such as dark fiber, circuits, Internet Protocol service and data storage… Content providers want to extend their established businesses and offer viewers at home an additional convenient way to choose and receive entertainment.
Enron provides the wholesale logistical services that bridge the gap between content providers and last-mile distributors. Full-length movies-on-demand service has been successfully tested in four U.
Enron is increasing earnings per share and continuing our strong returns to shareholders. Recurring earnings per share have increased steadily since and were up 25 percent in Little did Enron shareholders know the executives were busy trading Enron stock well aware of the scandalous accounting practices that would eventually lead to the demise of Enron. Enron hardly resembles the company we were in the early days. During our year history, we have stretched ourselves beyond our own expectations.
We have metamorphosed from an asset-based pipeline and power generating company to a marketing and logistics company whose biggest assets are its well-established business approach and its innovative people. Our performance and capabilities cannot be compared to a traditional energy peer group. We have a proven business concept that is eminently scalable in our existing businesses and adaptable enough to extend to new markets.
Additionally, a quarter of Americans say that similar practices occur at most other large corporations, and another half say that they occur at some other large corporations.
Is Enron having a ripple effect on the public's perception of the economy more generally? That could very well be the case. Several news reports have noted that the main effect of the Enron scandal may be to lower investor confidence in the information they have about companies' performances, which in turn affects their confidence in the stock market.
What about the Bush administration? Both President Bush and his father had close ties to Enron, and many of Bush's associates and members of the Bush cabinet have benefited from association with Enron in the past. Is this hurting Bush? No, it doesn't appear as if the Enron situation has had a significantly negative impact on President Bush - so far.
Only about one in six Americans believe that Bush or members of his administration did something illegal in the Enron case, but about four in 10 believe they did something unethical but not illegal. Of course, Enron also made contributions to many other politicians of all political persuasions.
What about the image of Democrats? The Democrats are faring about the same in the eyes of the public as members of the Bush administration and Republicans in Congress.
As shown above, all three groups are seen as far less likely to have committed illegal acts than Enron executives. Has this Enron situation fueled a strong public groundswell of support for campaign finance reform? There has been a modest increase in support for campaign finance legislation since Enron began to dominate the news, but support for such new laws has always been relatively high.
Even if campaign finance legislation is enacted, two-thirds of the public believes that special interests will always find a way to maintain their power in Washington. However, Americans are willing to see Congress investigate the nature of the relationship members of the Bush administration had with Enron executives. You said that the public is most upset about the fact that the "little guys" - the employees of Enron - lost their jobs and retirement while the fat cats at the top made millions.
Does the public support the idea of the government coming to the aid of the Enron employees who lost out in the collapse of Enron? It doesn't appear that this type of government aid program is a particularly popular alternative. Republicans were particularly against the concept of this type of government intervention. The rest said they didn't know enough about the event to have an opinion.
Finally, is there any evidence that this situation is affecting American workers' confidence in their own companies or their own financial situation? In the years that followed, Skilling led Enron into markets such as wholesale electricity and Internet broadband. Fatefully, though, the company was unable to recreate its first success and hid its failures through fraudulent accounting. Still, Enron became a celebrated business case study.
The rise of the Internet in the middle of the decade did more than introduce new technologies, but also ushered in a cultural revolution in American business. No longer the province of button-downed up-tight company men or sleazy Wall Street traders, business was now radical and anti-establishment. The Internet revolution in California may have been the center of the action, but the Texas company had no trouble fitting in.
However, if a booming stock market seemed to be proof that this new way of doing business had succeeded, there were problems growing beneath the surface. Business culture in the s was awash in buzzwords and proclamations of revolution, but such excitement came at the expense of precise business strategies. It was all enough for the business school professor Michael Porter to warn about a drift away from concrete thought in the pages of the Harvard Business Review.
As it turned out, Enron was the worst possible example one could offer in defense of this new business scene.
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