Skip to content

CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment

Tara Retail, a Pune chain, compares its inventory turnover, store design and loyalty programme with those of the best performer in a different industry to learn practices it can adapt. Which analytical technique is Tara using?

Tara Retail is using benchmarking. It compares its own processes and performance against the best practices of leading firms, even from other industries, so it can learn and adapt methods to improve, unlike SWOT, PESTEL or portfolio analysis.

  1. ABenchmarkingCorrect
  2. BSWOT analysis
  3. CPESTEL analysis
  4. DPortfolio analysis

Explanation

Benchmarking compares an organisation's processes and performance with the best practices of others, including firms in other industries, to find improvements. SWOT lists strengths, weaknesses, opportunities and threats, PESTEL studies the external macro environment and portfolio analysis evaluates business units. Only benchmarking fits the comparison with best performers.

Did you get it right without looking?

One question tells you little. A timed set on Strategic Analysis: Internal Environment shows your real accuracy, how long you take and where you lose marks.

Practise Strategic Analysis: Internal EnvironmentFree diagnostic mock

More Strategic Analysis: Internal Environment questions