Answer the following from the Enron case pre-reading assigned for today's class:

1. How did Enron create value for its customers? How did the business model change over the years?

Enron was in energy business and it created value over-time by providing efficient services and
catering to the needs of customers with integrity and objective of customer centricity.

The business model shifted from creating value to extracting value. Enron started focusing on
increasing their stock prices and the conflict arises among the interest of the management and the
customers. Their trading business strive to make more money by using unethical tactics.

2. Compare the positives and negatives of working in a company like Enron.

Positives:

1. High incentives motivate the employees to generate higher revenue

2. The work environment provides greater autonomy to the employees to take decisions.

Negatives:

1. In order to generate high revenue, employees often get indulged in unethical behaviour.
2. Sometimes, personal behaviour subdues the interest of other stakeholders such as
government, customers and other related parties.

3. Who is Sherron Watkins in the case?

Sherron Watkins, born on August 28,1959, is an American former Vice President of Corporate
Development at the Enron Corporation. She was the whistle-blower in the case of the company’s
collapse and said that Enron needed to come clean about potentially disastrous accounting tricks or
face implosion.