1. Benchmarking measurements are used as the basis of many comparisons. Which of
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Question
1. Benchmarking measurements are used as the basis of many comparisons. Which of the following statements best describes the use of such measures:
a. To identify the gap between current performance and that of benchmark partners.
b. To track progress from the present into the future.
c. To track the progress of benchmark partners toward their goals.
d. To prevent competitors from learning about a company’s weaknesses.
e. To achieve superior performance with process improvements.
f. All of them
2. Which two of the following statements about the process of benchmarking are incorrect?
a. Benchmarking makes organizations become the best in class.
b. Best practice for one company may not be best practice for another.
c. Benchmarking is an ideal opportunity to ensure that a company’s processes are fully understood and documented
d. Benchmarking works best when all areas of a business are subject to the process
e. Benchmarking should involve a careful assessment of the competition in order to determine those who are achieving competitive advantage
3. Reliable information about potential external benchmarking partners can be gathered from which of the following sources? Identify all those that apply.
a. Trade journals
b. Business media
c. Government statistics agencies
d. Industry and professional associations
e. Autobiographies
f. Consulting and accounting firms
4. Identify from the list below four reliable research techniques used in benchmarking.
a. Informal conversations with competitors
b. Focus groups or in-depth market research
c. Process mapping
d. Interviewing staff dismissed by competitor companies
e. Quality control variance reports
f. Financial ratio analysis
5. Select the group of words that best fits the words missing from the following statements about the limitations of benchmarking.
“There can be too much focus placed on ______ data and not enough on the ______ and ______ that produce the data. It is often challenging to obtain _______ information about competitors.”
a. Qualitative, Processes, People, Enough
b. Profitability, People, Competencies, Reliable
c. Quantitative, Processes, Competencies, Reliable
d. Quantitative, Processes, Management, Enough
Explanation / Answer
Ans 1) Option A
Benchmarking measurements are used as the basis of many comparisons. The basic purpose is to identify the gap between current performance and that of benchmark partners. It serves as perfomance metric and a control measure. It helps the organisation to identify the gaps and take measures to fix the deviations.
Ans 2) Option C and Option D
- Benchmarking is an ideal opportunity to ensure that a company’s processes are fully understood and documented
- Benchmarking works best when all areas of a business are subject to the process
Ans 3) Reliable information about potential external benchmarking partners can be gathered from the following sources Trade journals, Business media, Government statistics agencies, Industry and professional association and Consulting and accounting firms.
Ans 4) Four reliable research techniques used in benchmarking are:
1. Focus groups or in-depth market research
2. Process mapping
3. Quality control variance reports
4. Financial ratio analysis
These are formal hence reliable techniques whereas the other two listed i.e., Informal conversations with competitors and Interviewing staff dismissed by competitor companies can also be a source for benchmarking information but cannot be held reliable on account of holding back of useful information by the competitor or misrepresentation of facts by dismissed employee etc.
Ans 5) Option C: Quantitative, Processes, Competencies, Reliable
There can be too much focus placed on quantitative data and not enough on the processes and competencies that produce the data. It is often challenging to obtain reliable information about competitors.
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