Benchmarking occurs when a firm:
A)compares its performance with its previous performance.
B)sets up strategic plans for the future based on its current performance.
C)advises other firms on organization,based on its success.
D)compares the strategies of other firms in the industry to derive its strategy.

Question

Quizplus · Accepted Answer

Benchmarking involves comparing the strategies, processes, or performance of one's own firm with those of other firms in the industry. This helps a firm to identify its strengths and weaknesses, and to learn from best practices of other firms. While A and B involve comparing a firm's own performance, C is not a typical outcome of benchmarking.

Benchmarking Occurs When a Firm