Blue Rhino Slows Down to Get Ahead
1. What is Blue Rhino’s business strategy? How well was the strategy supported by information systems?
Blue Rhino’s business strategy is:
1. Increasing its relationships and customers by providing a more efficient and safer way for supplying its customers with propane cylinders. Instead of refilling the same cylinder over and over again, which is a waste of time and dangerous, Blue Rhino offers an approach for exchanging empty ones with ones that are already filled.
2. Increasing the demand for, and awareness of cylinder exchange, to increase its sales.
Blue Rhino’s business strategy was not supported by information systems at first. They avoided micromanagement and bureaucracy, working in a decentralized environment. This type of implementation was an integral part in the company’s ...view middle of the document...
3. What management, organization, and technology issues did the company have to deal with as it built its new systems?
Blue Rhino faced several difficulties as it built its new systems. Blue Rhino employees were used to a management with no bureaucracy, now every decision has to pass through several procedures. While implementing a system for the inventory, “revamping data and retraining employees to get the system to work properly took months.” Documentation for the financial operations was also required, and security flaws were discovered. As they built the new systems, they discovered they had to create systems for the human resources, and the purchasing and customer services. This was not exactly an issue, other than the money they spent, rather it was a benefit for them for improving their services and reducing loss of productivity.
4. Did Blue Rhino benefit from Sarbanes-Oxley? Explain your answer.
According to the article, Blue Rhino was already planning on implementing information systems for its financial records and inventory, but the Sarbanes-Oxley got them going. However without this legislation they would have taken much more time to reach where they are now. They now expect to keep down the cost of staff, sales, and administration while the company can continue to increase its revenue. Also, as they were implementing the legislation, they discovered flaws on the way.
5. How successful has Blue Rhino been in responding to the requirements of the Sarbanes-Oxley legislation?
Blue Rhino can now finalize its financial statements in half the time it used to take, and are more accurate and secure with their data. Blue Rhino are confident they will meet their compliance deadline. Therefore they were very successful in responding to the requirements of the Sarbanes-Oxley legislation.