Benchmarking

Benchmarking involves comparing a business's performance metrics to industry best practices to identify gaps and improve efficiency or effectiveness. It is categorized into internal, competitive, and strategic benchmarking. Internal benchmarking uses self-set standards, competitive benchmarking compares against competitors, and strategic benchmarking aims for the highest industry standards. The goal is to enhance company performance and gain a competitive edge.

What is the primary purpose of benchmarking in a business context?

• To expand into new markets

• To reduce employee workload

• To identify gaps and improve efficiency

• To increase product prices

Internal benchmarking primarily involves comparing current performance with:

• Competitors' performance

• Industry standards

• Customer feedback

• Historical data

Which type of benchmarking involves using competitors' performance metrics?

• Operational benchmarking

• Competitive benchmarking

• Strategic benchmarking

• Internal benchmarking

Strategic benchmarking aims to achieve standards that are:

• The highest in the industry

• Equal to internal benchmarks

• Based on customer expectations

• Below industry average

What is a key characteristic of strategic benchmarking?

• Achieving near perfection

• Focusing on internal metrics

• Reducing operational costs

• Improving employee satisfaction