Explore BrainMass
Share

Benchmarking and Financial Performance

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Is benchmarking a valid and effective means of measuring a company's financial performance?

Please explain in detail and provide at least 4 references to support.

© BrainMass Inc. brainmass.com October 25, 2018, 7:15 am ad1c9bdddf
https://brainmass.com/business/benchmarking/benchmarking-and-financial-performance-497247

Solution Preview

Benchmarking is a valid and effective means of measuring a company's financial performance, but it should not be used as the only means to measure performance. When combined with other analyses, benchmarking serves a viable purpose and is an integral part of a comprehensive financial performance analysis. When management uses benchmarking, they perform a very detailed analysis of the company's financial data and compare the data with the company's main competitors. This is a very time and resource intensive process because the company is comparing each item, line by line. This allows management to determine how much is spent in advertising as compared to how much the competitors are spending in advertising, or how much the company is investing in the training and development of employees, compared to the amount that is being invested in the same area by the competitors. By using this type of analysis, management ...

Solution Summary

Is benchmarking a valid and effective means of measuring a company's financial performance?

Please explain in detail and provide at least 4 references to support.

$2.19
See Also This Related BrainMass Solution

Techniques for Financial performance benchmarking or measurement

Pick three techniques, approaches, or methods of financial performance benchmarking or measurement and research them in some depth. For each, discuss context (i.e., historical derivation, when to use, and where to use), what to expect (i.e., value of result), what not to nexpect (i.e., constraints and limitations), and important details.

View Full Posting Details