Benchmarking:
A) compares the efficiency and effectiveness of your business processes against strict standards.
B) allows industry participants to develop industry-wide standards.
C) is used to measure the speed and responsiveness of information technology.
D) synchronizes the business processes of customers, suppliers, and trading partners.
E) coordinates the value chains of independent firms to enable them to collectively produce a product or service.

Question

Quizplus · Accepted Answer

Benchmarking is a process of comparing the efficiency and effectiveness of your business processes against strict standards or best practices followed by other companies in the same or different industries. This helps identify areas where your organization can improve and optimize its processes to lower costs, improve quality, and drive business growth.

B, C, D, and E are incorrect choices because they describe different concepts. B talks about industry-wide standards, C refers to measuring the speed and responsiveness of information technology, D describes synchronization of business processes, and E is about coordinating value chains among independent firms.