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

Kestrel Hotels, a European chain, compares its housekeeping cost per occupied room with that of Alder Resorts, a direct competitor, using data obtained through a trade association survey. Which type of benchmarking is Kestrel performing?

Kestrel is performing competitive benchmarking because it compares its housekeeping cost per occupied room with a direct competitor in the same industry. Internal benchmarking uses its own units, while functional and generic benchmarking look to organisations outside the industry.

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

Explanation

Comparing against a direct competitor in the same industry is competitive benchmarking. Internal benchmarking would compare units within Kestrel. Functional benchmarking compares the same function with leaders in other industries, and generic benchmarking compares processes irrespective of industry.

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