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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Marlow Freight, a regional logistics firm, compares its parcel sorting cost per item and on-time delivery rate with those of a rival parcel carrier that it has identified through industry publications. Which type of benchmarking is Marlow primarily undertaking?

Marlow is undertaking competitive benchmarking, because it compares its sorting costs and delivery performance with a direct rival in the same industry. Internal benchmarking uses its own units, and functional benchmarking looks to best practice in any sector, so neither describes this case.

  1. AInternal benchmarking
  2. BCompetitive benchmarkingCorrect
  3. CFunctional (generic) benchmarking
  4. DStrategic benchmarking of a non-competing sector leader

Explanation

Competitive benchmarking compares an organisation's performance with direct rivals in the same market. Marlow is comparing against a rival carrier, so it is competitive. Internal benchmarking would compare its own depots, and functional benchmarking would use a best-in-class firm in any industry.

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