BAS22 Advanced Business Communication

• The reasons for failure of either of these companies and how they related to communication

1. Enron Corporation or ABC Learning.

With the ramified economic changes and complex business structure, each and every organization should be inclined to use innovative and creative cyber computing system to make effective use of resources. This Enron company had faced various communication issues

Present description of company 

Enron Corporation is an American energy, commodities and services company which is based in Houston Texas. This company was founded in 1985 and winded up in 2007 due to its non-effective business functioning. It is evaluated that this company had to face various issues such as increased overall cost of production less effective communication and loss of its strategic alliance. The main issues which resulted to the destruction of its business are related to communication method (Witkowski, et al 2014).

Problems and issues faced by company in its business functioning

It is evaluated that Enron Corporation d complex set of activities in which various set of activities are performed. In order to communicate with employees, management, vendors and clients, company had been following various communication methods such as using cyber computing enterprises resources planning, conducting meeting and seminars and using simple E-mail chain. This company has been marked as defund company due to its failure to pay amount of debt to its creditors (Heath, 2017).

Communication methods

There are several communication methods or channels have been followed and resulted to the destruction of company.

Cyber computing system enterprises resources planning- This Enron Corporation has followed the proper analytical system in its value chain activities. This will increase the overall communication methods between employees, management, vendors and clients. The main issue which Enron Corporation has faced in its business is the breakdown and delay in communicating the required level of information to the concerned person. For instance, employees had faced the issue of supplying the orders in warehouse due to long span of time.

General meeting- Company had also faced issue of communicating the problems to its fellow stakeholders.  The main issue was related to developing grievances portal which was not set up in organization. Company had also manipulated the accounting information and details which increased the losses and reduced the profit of company.

Manipulating the accounting and reporting frameworks- It is evaluated that company had been marked as defunct company due to its non-compliance and failure to keep transparency in its accounting and reporting information. It had resulted to destruction of business and company was wound up.

Effectiveness of various forms of communication of organization

This has increased the burden of company to pay off its debts within the given time manner. In addition to this, banks and other creditors filed a case of bankruptcy which resulted to failure of business due to its non-effective business functioning. After court orders and failure of company to comply with the set targets, it has faced high loss and resulted to winding up of company (Markham, Gabilondo and Hazen, 2017).

Key persons who failed to communicate key information with other persons

 It is evaluated that Kenneth Lay (Founder, Chairman and CEO, Jeffrey Skilling (former President, COO, and CEO), Andrew Fastow (former CFO), Rebecca Mark-Jusbasche had failed to communicate properly with the stakeholders which resulted to failure of business throughout the time. It increased its overall cost of capital and business failure of company. These key managerial persons had also faced problems to communicate with other stakeholders in its general meeting and shown only falsified information. It has resulted to non-compliance and destruction of transparent business (Stern and Haley, The Boeing Company, 2016).

Attributes to failure

The main attributes of failure of business is related to non-effectiveness of business to comply with the committed work. It has been observed that if company would have managed effective communication channel like adopting enterprises resources planning or internal control system then it would have stopped the failure of business. Company had to face issue of delay in work or maintain required amount of inventory in business (Markham, 2015 ).

Recommendation

Company has followed cyber computing enterprises resources planning, general meeting, and changes in reporting frameworks which had resulted to destruction of business and company has also failed to arrange proper level of resources. If company wanted to survive then it should have followed proper cyber computing enterprise resources planning in its business functioning.

Conclusion 

As per the annual report of company, it was considered that Enron Corporation had to face high amount of penalty due to its non-compliance with the applicable rules and regulations and failure to comply with the court orders within the time manner. This problem was faced due to the failure of company to communicate the required amount of information within the given time manner.  

References

Heath, R.L., 2017. Issues Management in Investor Relations and Financial Communication. The Handbook of Financial Communication and Investor Relations, p.261.

Markham, J.W., 2015. A financial history of modern US corporate scandals: From Enron to reform. Routledge.

Markham, J.W., Gabilondo, J. and Hazen, T.L., 2017. Corporate Finance: Debt, Equity, and Derivative Markets and their Intermediaries, 4th. West Academic Publishing.

Stern, A.J. and Haley, J.R., The Boeing Company, 2016. Mobile communication device and method of operating thereof. U.S. Patent 9,497,221.

Witkowski, T.R., Dykema, K.A., Geerlings, S.L. and Zeinstra, M.L., Johnson Controls Technology Company, 2014. Wireless communications system and method. U.S. Patent 8,897,708.