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CS Professional · Strategic Management and Corporate Finance · Managing the Multi-Business Firm and Analyzing Strategic Edge

A packaged-foods company in Gurugram wants to learn best practice in warehouse order picking. It studies a leading e-commerce fulfilment firm that is not a food company and is not its competitor. This is an example of:

This is generic or functional benchmarking. The company compares one function, warehouse order picking, with a best-in-class firm from an unrelated industry that is not a competitor. Internal benchmarking uses its own units, and competitive benchmarking would target direct rivals.

  1. AGeneric (functional) benchmarkingCorrect
  2. BInternal benchmarking
  3. CCompetitive benchmarking
  4. DVertical integration

Explanation

Generic or functional benchmarking compares a particular function or process with the best practitioners, even in unrelated industries. Here the firm studies a non-competitor to learn about order picking, so it is generic. Internal benchmarking uses units of the same firm, and competitive benchmarking would involve a direct rival.

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