Benchmarking involves
A)comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs and effectiveness of these activities.
B)checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to its direct competitors.
C)studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies.
D)studying how a company's competitive capabilities stack up against the competitive capabilities of selected companies known to have world-class competitive capabilities.
E)comparing the best practices in one industry against the best practices in another industry.

Question

Quizplus · Accepted Answer

Benchmarking involves comparing different companies' value chain activities and cross-company comparisons of costs and effectiveness. This allows a company to identify areas where it can improve its performance and gain a competitive advantage over its rivals. Option B is only concerned with a company's achievement of financial and strategic objectives, while option C is about comparing resource strengths with rivals. Option D only considers a company's competitive capabilities against selected companies with known world-class capabilities, and option E is about comparing best practices in different industries.

Benchmarking Involves