- 6 Marks
Question
a) It is a fact that human beings are unique individuals, yet some look up to successful people as mentors, and there is nothing wrong with that. It is believed that it is not necessary to reinvent the wheel in everything we want to do. Where others have done it well, we can follow their steps.
In business, there are several areas where one company can benchmark successful ones to remain competitive. Successful organizations always seek to follow best practices to enhance their operations and meet customers’ satisfaction.
Required:
i) Explain product benchmarking. (2 marks)
ii) Explain process benchmarking. (2 marks)
iii) State TWO (2) difficulties that may be faced when embarking on Competitive Benchmarking. (2 marks)
Answer
i) Product Benchmarking:
Product benchmarking involves comparing a company’s product with those of other companies producing similar products. The focus is on aspects such as cost, functionality, quality, and design. By evaluating these factors, companies can identify areas for improvement in their products to remain competitive in the market. (2 marks)
ii) Process Benchmarking:
Process benchmarking compares the performance of a specific activity or process within one company with the performance of the same or similar process in another company, often in a different industry. It is used to analyze operating systems and identify best practices. This type of benchmarking typically involves companies that agree to share information with one another. (2 marks)
iii) Difficulties of Competitive Benchmarking:
- Lack of Access to Information: Companies may find it difficult to obtain detailed and accurate information about competitors’ processes, making benchmarking challenging.
- High Cost: The process of benchmarking, including research, data collection, and analysis, can be expensive, particularly when dealing with competitors who are not willing to share information.
(2 marks)
- Tags: Competitive Benchmarking, Process Benchmarking, Product Benchmarking
- Level: Level 2
- Topic: Models of evaluation Quality
- Series: NOV 2021
- Uploader: Dotse