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CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

A company compares its order-to-delivery cycle time with that of a firm in a completely different industry that is known worldwide for the fastest fulfilment process, and adopts that firm's practices. This type of benchmarking is best described as:

This is functional or generic benchmarking. The company compares a specific process with the best performer from an unrelated industry, rather than with its own units or direct competitors.

  1. AInternal benchmarking
  2. BCompetitive benchmarking
  3. CFunctional or generic benchmarkingCorrect
  4. DStrategic benchmarking of the same-industry leader

Explanation

Functional (generic) benchmarking compares a process with the best performer in any industry, even an unrelated one. Competitive benchmarking compares with direct rivals in the same industry. Internal benchmarking compares units within the same organisation. Here the comparator is from a different industry, so functional benchmarking applies.

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