Discuss and explain the topic of Benchmarking. Analyze an aspect of ratio analysis. Please also include references used.
Benchmarking has been used across organizations in a more or less formalized form since early 1980s. In today's time benchmarking is a widely spread management tool. There are numerous resources available on benchmarking with majority of them focusing on product or process benchmarking. However these just focus on technical and quantitative aspects. In reality, benchmarking is more than comparative analysis of quantitative measures of one company with another. When benchmarking is taken as piecemeal for a product or process, it generally gives limited results. The true value of benchmarking can be realized by organizations by integrating it into organizational strategy and incorporated into all performance improvement efforts. With an integrated strategy the goal of benchmarking would be incomplete as it would be unclear as to which process to benchmark.
What is Benchmarking?
There are many definitions available for benchmarking but it was first used in companies which were into production because of which it finds its roots in production, development and quality. Production can be defined as a ...
This is an analysis of the importance of benchmarking for companies.