Background
A company with humble beginnings, Enron began as a merger of two Houston pipeline companies in 1985. Although Enron faced a number of financially difficult years, the company managed to survive. In 1988, the deregulation of the electrical power markets took effect, and the company redefined its business from "energy delivery" to "energy broker" and Enron quickly changed from a surviving company to a thriving one. Deregulation allowed Enron to become a "matchmaker" in the power industry, bringing buyers and sellers together. Enron profited from the exchanges, generating revenue from the differences between the buying and selling prices. Deregulation allowed Enron to be creative - for the first time, a company that had been required to "operate within the lines" could innovate and test limits. Over time, Enron's contracts became increasingly diverse and significantly more complex. As Enron's products and services evolved, so did the company's culture.