StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Types of Benchmarking - Essay Example

Cite this document
Summary
The paper "Types of Benchmarking" highlights that a company that is involved in benchmarking tends to improve its products, services, and even processes. Based on these changes customers are more likely to notice the improvements which ultimately leads to an increase in sales and hence productivity…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Types of Benchmarking
Read Text Preview

Extract of sample "Types of Benchmarking"

Benchmarking is a tool widely used in the business world. Companies use this form of management as a point of reference. Benchmarking is a tool that companies use to compare its operation to other operations (Watson, 2007). The benchmarks are set standards that are higher which companies use as yardsticks in determining their performances. It is additionally a way businesses evaluate the healthiness of their processes and business. Benchmarking involves the process of studying the general industry and competitive practices. It is used as a way of gauging a company’s success and pinpointing the company’s shortcomings. Benchmarking is used widely across all kinds of companies; private, public, nonprofit organizations, and even charitable organizations. Large companies have a designated office with the mandate of benchmarking. Additionally benchmarking is used in identifying gaps in the system so that corrective measures can be undertaken and therefore enhance performance. Various types of benchmarking are dependent on a company’s policies.
Types of benchmarking
The two main types of benchmarking include internal and external benchmarking. Internal benchmarking involves the comparison of performances and practices between individuals, teams, and groups within the same organization. External benchmarking involves the comparison of an organization's processes and performances to that of other organizations within the industry (Mard, 2004). Benchmarking is further distilled into other three forms of benchmarking which include process, performance, and strategic benchmarking. Process benchmarking involves reviewing how other companies handle similar functions and objectives. Comparison is only with top performance within the industry to try to evaluate how far behind a company is regarding the completion of specific tasks. Information to assist in benchmarking is gathered through surveys, research, site visits, and interviews.
Performance benchmarking provides a way in which organizations compare their performances with set performance metrics. Additionally, performance benchmarking takes the form of reviewing the company’s income statements and balance sheets to ensure they are made by the required standards. The performance gaps identified can be prioritized, and corrected, and follow-up can be made to ensure performance improvement. Strategic benchmarking ideally is the comparison of companies to the long-term goals and objectives. It additionally involves identifying the winning strategies employed by top organizations and adapting them to the organization's strategies. Strategic benchmarking is majorly utilized by top-level management.
Importance of benchmarking
There are several key advantages of benchmarking. One major advantage is that it leads to cost-cutting for businesses. Benchmarking lower labor costs as a company can identify that a top company is using technology instead of labor. Based on this review the company can adopt the technology that has aided in cost-cutting. Benchmarking boosts a company’s product quality. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Benchmarking Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Benchmarking Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1701412-benchmarking
(Benchmarking Essay Example | Topics and Well Written Essays - 500 Words)
Benchmarking Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1701412-benchmarking.
“Benchmarking Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1701412-benchmarking.
  • Cited: 0 times

CHECK THESE SAMPLES OF Types of Benchmarking

Benchmarking: Xerox, Hewlett Packard and General Motors of Mexico

There are three different Types of Benchmarking which includes internal, external and best practice.... The first case study is the company which has pioneered in the field of benchmarking which is Xerox, followed by a case study on Hewlett Packard and finally a case study on General Motors of Mexico.... All the case study explains the benchmarking process and why did these big companies applied the concept of benchmarking and how did they profit from it....
14 Pages (3500 words) Assignment

Marketing Attractiveness of Easy Group

The author of the present case study "Marketing Attractiveness of Easy Group" highlights that the easy Group is the private investment vehicle of Stelios, the serial entrepreneur.... The easy Group is the owner of the easy brand and licenses it to all of the easy branded businesses.... ... ... ... Easy Group acquired various businesses and has continued diversification....
14 Pages (3500 words) Case Study

The Roots of Benchmarking Model

However, these benefits are available only to those who are aware of the specifics of the benchmarking process, and particularly such essential aspects as various Types of Benchmarking.... There are four major Types of Benchmarking identified in the literature: benchmarking against internal operations (Internal Benchmarking); benchmarking against external direct product competitors (Competitive Benchmarking); benchmarking against external functional best operations or industry leaders (Industry or Functional Benchmarking); benchmarking a process in one or several unlike organisations (Generic or Process Benchmarking) (Bogan, 1994)....
5 Pages (1250 words) Essay

Effectiveness of Benchmarking as a Performance Improvement Strategy

The author notes that most of the companies that are listed in the fortune top 500 have at one time or another employed the strategy of benchmarking in an effort of improving performance.... Different authors have different views on the topic of benchmarking.... The first step in the process of benchmarking involves a thorough understanding of the current norm of business and then analyzing the business practice of others who are considered the pacesetters in the industry....
10 Pages (2500 words) Research Proposal

Project Management - Benchmarking

here are four Types of Benchmarking practices that are used to enhance project management and add business value but which can still... his paper therefore seeks to explore the concept and working of benchmarking as an effective operational tool that can be used to evaluate and augment project management.... The discussion will therefore centre on the significance and use of benchmarking as enhancement scheme in delivering project and business value....
14 Pages (3500 words) Essay

Portfolio Assessment

Strategic planning involves the managerial process of maintaining a constant tie between an organization's objectives and resources and continuously changing market opportunities.... It involves anticipating future events and coming up with strategies that will enable the.... ... ... A strategic plan looks into all the small things that a company could do then narrowing down into further smaller areas of specialization that are required for the solution of existing problems ...
4 Pages (1000 words) Assignment

World Class Operation

According to the report the main aim of benchmarking is to gain a clear understanding of the competitors and the interests of the customers.... According to the report findings the main role of benchmarking is to provide the management with the necessary information and knowledge of what composes the best performance in a certain field.... The purpose of benchmarking is to enable the organization to develop realistic goals and strategies that will improve the performance of the organization....
4 Pages (1000 words) Essay

Benchmarking as a Business Strategy For Improving Business Performance: Best Practice in the Industry

The first step in the process of benchmarking involves a thorough understanding of the current norm of business and then analyzing the business practice.... The paper describes benchmarking as a management strategy which is aimed at improving performance in an organization by trying to match the industry best practices.... Essentially benchmarking involves 'carrying out an audit on two fronts'.... According to Damelio, benchmarking is a 'process and not an event'....
24 Pages (6000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us