ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence
Harlow Components, a manufacturer, has set a goal of becoming the best in its industry for delivery reliability. Its managers compare their order-to-delivery process against that of a leading logistics firm in a different industry that is renowned for punctuality. Which type of benchmarking is Harlow using?
Harlow is using functional (generic) benchmarking, because it compares a specific process, delivery reliability, with a best-in-class organisation from a different industry rather than with its own units or direct competitors.
- AInternal benchmarking
- BCompetitor benchmarking
- CFunctional (generic) benchmarkingCorrect
- DStrategic benchmarking of long-term plans only
Explanation
Functional or generic benchmarking compares a specific process with the best performer in any industry. Here the comparator is a logistics firm outside Harlow's industry, known for the process being studied. Competitor benchmarking would require comparison with a direct rival.
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