External or Internal Disaster in Organization

Different Business is affected by internal and away factors. These aspects have signifi washbowlt influences on the way logical argument organisations are operating. one and only(a) of these is the so-called disasters in an organization.Disasters may be considered as international if the forces happens from the external environment of the organization, like globalization, global monetary crisis, technological changes and others while net disasters are those that happens inside the organization like disappointment to provide feeling service, inability to market the products and service well, inability to handle risks which affects the overall slaying of the organization.Primarily, the goal of this paper is to consider an internal disaster from one of the roughly controversial organizations in the market, i. . the aspect of Enron. Internal Disaster Aforementioned, one of the just about talked-about issues and disasters in the industry is the auditing as well as accounting f ailure of Enron. It is considered as the largest loser and stock collapse (Fox 2003). Before the company confront this issue, Enron has been considered as a study(ip) American energy industry. The events or disasters that resulted to the bankruptcy and collapse started long before anyone had suspected fraud and anomalies at the industry.In this disaster, ii names have been noted Arthur Andersen and Enron. One of the disasters that challenged the company is the inability of the focussing to anticipate the wrongdoings of Arthur Andersen. The disasters are centered in auditing aspects just before Enron filed bankruptcy. For practice session in 1996, Andersens audit report regarding Waste Management monetary resource were discovered to be irrelevant and materially false that results in ostentatiousness of Income of the company by over $1 billion in the midsection period of the 1990s.On the other hand, in 1997, it has been found out by the dry that Sunbean has used accounting tr icks to create false profits and sales and Andersens role in this disaster is that he signed-off these financial reports event by and by an industry partner flagged them. Herein, the company set about major disaster of partnering or hiring an auditing and consulting industries which is distrustful and irresponsible. Although the company has not been aware, Enron still has some plans to prevent such(prenominal) issue.However, the initiative of the company when it comes to their financial audit has been very weak that it hunt downs to their major bankruptcy. To be fitting to solve this kind of disaster, Enron focusing has provided disaster plans by identifying the root f the issue. After acknowledgeing the problem about Arthur Andersen, the management immediately seeks third party assistance to clear the issue by devising Andersen pay for the scandals and anomalies he has done.On one hand, another disaster faced by the company is in line with the inefficient and strategic endi ng making approach and also having ambiguous and vague firm economic and practice aims. Although Enron has some management plan, the company has not been able to persist this plan well. For instance, The CEO of Enron had conglomerate product plans which needed major financial support the organization during that period was also going through major disasters in their international businesses.In addition, it was not until Enron was financially unstable did the company starts to do something. So as to resolve this kind of disaster, the organization implemented polar approaches. However, the strategy of the company only went from one major disaster of issue to the other. Because of the failure of the management of the organization to have strategic purpose making, this lead to major disaster of investments and partnerships, the organizations growth slowed down . As a result more of its inabilities and failures had grown more apparent (Zellner et al. 2001).Bankruptcy and various ca ses against the company had resulted to their bankruptcy. In addition, various employees of the organization had lost their college funds, life savings, and pensions on with the collapse of the company. Herein, it can be said that the management of Enron must be able to have strategic close making for the future to infinitely sustain the strength of the company. In regularize to solve this disaster, the organization has been able to initiate a proper and strategic decision-making of the company.Herein, the companys decision should be made made strategically by identifying first the pros and cons of the decision that they made. The management sees to it that everybody should agree to the decision so that further conflict or risks within the company would not arise. Good decision making can be attributed as one of the vital factors that will help the business to achieve its core mission and objective. This alternative is helpful in a way that it can make the company more competiti ve and bring home the bacon in the marketing environment. ConclusionThere are many lessons that can be wise to(p) from the case of Enron and Arthur Andersen. It can be concluded that, based on the case of Enron, it is key that every individual in the business field should know how to manage or to handle disasters, specifically internal disasters in order for the business to achieve success and to be able to managed it effectively. In our case, it is important that the lessons learned from Enron and Arthur Andersen scandal should serve as enlightenment in making an efficient risk management manual