An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to observe a rival firm perform the new-client cultivation process in hopes of gleaning improved methods it can adopt. This is an example of:
A) competitive benchmarking.
B) functional benchmarking.
C) internal benchmarking.
D) generic benchmarking.

Question

Quizplus · Accepted Answer

Competitive benchmarking involves comparing one's own processes with those of direct competitors to identify best practices and areas in need of improvement. This is exactly what the accounting firm is doing by observing a rival firm's new client cultivation process. Functional benchmarking compares processes with those of companies in the same industry but not necessarily direct competitors. Internal benchmarking compares processes within a company's own departments or divisions. Generic benchmarking compares processes with those of companies in other industries.

An Accounting Firm Realizes It Is Woefully Inadequate at Cultivating