ITPEC IP April 2024 Question 83
Which of the following is the appropriate explanation of benchmarking used for corporate management?
Explanation
Measuring one's own products and services and comparing them with superior competitors — that comparison with the best is benchmarking.
Benchmarking measures a company's products, services and operations, qualitatively and in numbers, against the best practice of competitors or leading companies in any industry. The gaps it reveals become improvement targets, and studying how the leaders achieve their results shows what to change.
Answer (d)
Why not others:
- •(a) — promoting continual improvement of business processes through Plan-Do-Check-Act is the PDCA cycle, which works inside the company without any comparison with others
- •(b) — the best case study used as the reference for comparison is the best practice, the benchmark itself; benchmarking is the activity of measuring and comparing against it
- •(c) — the unique skills and technologies that give superiority over competitors are the core competence
Key rule: A benchmark is the reference point; benchmarking is the process of measuring against it, finding the gap and closing it.
Business Strategy Management · AI-written, may contain errors
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