Cases in which multinational companies fail due to cultural differences.

Failure Cases of Foreign Multinational Corporations —— Correlation between Enron's Collapse and Corporate Culture Errors

The collapse of Enron shocked the world. Because its extraordinary development is legendary, it has rapidly developed from an unknown local enterprise into a world-class large group in just a few years. Its business philosophy is to adopt a cruel system of survival of the fittest by hook or by crook for internal employees to achieve success, that is, "pressure cooker" culture. Forest Hoglund, former head of Enron's oil and gas exploration department, said: "The driving force is an extraordinary image, and its performance record keeps rising." But this motto of "success only" makes stealing others' achievements a very common thing in this environment. An employee of Enron described with a lingering fear, "In the company, I feel that deception and the law of the jungle are everywhere. When I get off work, I not only have to lock the documents in the cupboard, but also carefully check them so as not to be stolen by my colleagues and make my labor achievements go up in smoke. " At Enron, losers are always out, winners stay, and those who get the biggest deal get millions of dollars. This is the epitome of Enron's gambling culture of "the winner wins the world". 1) and the system of "only success, no failure" make employees dare to take risks. At Enron, the losers are always out, and the winners will stay, hoping that those who get the biggest deal will get millions of dollars in bonuses. Before Baxter, Kenneth Lay, the chairman, let three senior managers leave one after another in a few months. This is the epitome of Enron's winner-takes-all culture. The company keeps the pressure of Enron's share price rising continuously, which induces senior managers to take more risks in investment and accounting procedures. They say that the result of doing so is to falsely report income and hide more and more debts, which leads to the lack of humanistic care. In the words of former manager Margaret Secconi, it is "a house built of cards". Baxter will never be able to testify about what happened before Enron went bankrupt and what he was worried about, because on the 25th, Baxter got into his Mercedes, raised his pistol at his head and pulled the trigger. The authorities declared the 43-year-old millionaire dead. The police think that he committed suicide. Sally Eisen, a former Enron employee, said: "You are favored today, and you may fall out of favor tomorrow. You know who is in power and who is not. You want to keep in touch with this organization. To this end, you are willing to do your best. " Peter Fusaro, a colleague of Global Change, said that until last autumn, Enron was boasting about its "pressure cooker" culture. Last August, the company published an in-depth analysis of Enron. Fusaro's report said: "If Enron no longer needs anyone, these people will be replaced." The report quoted a sentence from an annual report of the company-"We only pay attention to the results." Some former executives of Enron said that for senior managers, their promotion often depends on the results and motives of high-level competition for strategic control of the company.