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

Ostrava Hotels wants to dramatically improve its guest check-in process. Management selects a leading airline known for fast passenger check-in, even though the airline operates in a different industry, and studies how it achieves its results. What is the main advantage of this choice of partner over benchmarking against other hotels?

The main advantage is that a non-competing partner in another industry is more willing to share information and may reveal innovative practices hotels have not yet adopted. The practices still need adapting, and Ostrava still needs to measure its own baseline performance first.

  1. AExchanging sensitive cost data is easier because the partner is not a competitor and may yield innovative practices not yet used in hotelsCorrect
  2. BIt guarantees that the airline's check-in method can be copied without adaptation
  3. CIt removes the need to measure Ostrava's own current performance first
  4. DIt allows comparison of overall profitability between the two firms

Explanation

Functional benchmarking against a non-competitor in another industry reduces confidentiality concerns and can reveal innovative practice. Practices still need adapting, and Ostrava must still measure its own baseline. Overall profitability comparison is not the aim of process benchmarking.

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