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ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Halden Logistics wants to know how its depot scheduling process compares with that of a leading online retailer in a completely different industry, because both manage thousands of daily deliveries. Which type of benchmarking is Halden using?

Halden is using functional (generic) benchmarking. It compares a specific process, depot scheduling, with the best practice of an organisation in a different industry. Competitor benchmarking would involve direct rivals, and internal benchmarking would compare units within Halden itself.

  1. AInternal benchmarking
  2. BCompetitor benchmarking
  3. CFunctional (generic) benchmarkingCorrect
  4. DStrategic benchmarking of the whole business model

Explanation

Functional or generic benchmarking compares a specific process against the best performer in any industry, even a non-competitor. Halden is comparing one process (scheduling) with an organisation in a different sector. Competitor benchmarking would require a rival in the same industry.

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