Skip to content

CMA Final · Strategic Performance Management and Business Valuation · Performance Measurement, Evaluation and Improvement Tools

In the context of benchmarking, a company compares its order-fulfilment process with that of a leading firm in an entirely different industry known for exceptional logistics. This type of benchmarking is best described as:

This is generic or functional benchmarking, because the comparison is with a best-practice process in a firm from a different industry. Internal benchmarking uses units of the same firm and competitive benchmarking uses direct rivals.

  1. AGeneric (functional) benchmarkingCorrect
  2. BInternal benchmarking
  3. CCompetitive benchmarking
  4. DHistorical trend analysis

Explanation

Comparing a process with a best-in-class firm outside one's own industry is generic or functional benchmarking. Internal benchmarking compares units within the same firm, and competitive benchmarking uses direct competitors.

Did you get it right without looking?

One question tells you little. A timed set on Performance Measurement, Evaluation and Improvement Tools shows your real accuracy, how long you take and where you lose marks.

Practise Performance Measurement, Evaluation and Improvement ToolsFree diagnostic mock

More Performance Measurement, Evaluation and Improvement Tools questions