ITPEC FE Morning October 2023 Question 67
Which of the following is an explanation of benchmarking that is used for corporate management?
Explanation
Understanding one's own products, services and operations by comparing them with competitors or advanced companies — that comparison with the best is benchmarking.
Benchmarking measures a company, qualitatively and in numbers, against the best practice of competitors or of leading companies in any industry, to find the gaps and set improvement targets.
Answer (a)
Why not others:
- •(b) — drastically redesigning business processes from the customer's viewpoint with full use of IT is BPR (business process reengineering)
- •(c) — planning and managing company-wide management resources in an integrated way to improve efficiency is ERP
- •(d) — concentrating resources on unique, superior skills and technologies that generate profit is core competence management
Key rule: Benchmarking compares with others to find gaps; BPR redesigns processes, ERP integrates resources, and core competence focuses on what the company does best.
Business Strategy Management · AI-written, may contain errors
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