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ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Delta Retail plc compares its inventory turnover, delivery times and customer complaint rates with those of Omega Stores, another national retailer that sells similar goods to the same customers and is also a competitor. The data are obtained through an industry association survey. Which type of benchmarking is Delta Retail using?

Delta Retail is using competitive benchmarking, because it is comparing its operating measures with a direct rival serving the same customers in the same industry. Internal benchmarking would compare its own branches, and functional benchmarking would look at leaders from other sectors.

  1. AInternal benchmarking
  2. BCompetitive benchmarkingCorrect
  3. CFunctional benchmarking
  4. DGeneric benchmarking

Explanation

Delta is comparing itself with a direct competitor in the same industry that sells to the same market, which is competitive benchmarking. Internal benchmarking compares units within one organisation. Functional benchmarking compares a function against the best in any industry, so it is wrong because the comparator here is a rival.

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