Benchmarking in Todays Business Environment

In: Business and Management

Submitted By matjay94
Words 3114
Pages 13
University of South Wales
Advanced Management Accounting AF3S127
Benchmarking
In today’s Business Environment

With initial applications appearing in the 1980’s, benchmarking is now a powerful global mechanism used is business everywhere for process improvements and re-engineering of companies (Beretta, Dossi and Grove, 1998). My aim for this essay is to explain the concept of benchmarking using a range of sources. I will also critically analyze how and why organizations use benchmarking as a weapon to persist in today’s competitive business environment to see if it really is that effective.
Benchmarking is the continuous analysis of processes, functions, strategies, performances and many other aspects of a business compared with or between the “best-in-class” organizations by gathering information by using appropriate methods of collection, with the intention of evaluating an organizations current standards and then carrying out self-improvement by applying changes to match or exceed the standards (Anand and Kodali, 2008).
Benchmarking is a technique used for continuous improvement of something within a business. It is a way of measuring a firm’s product; services or activities against top other organizations either internal or external to the firm (Drury, 2012). This could be close competition for example; customer service on telephone calls from mobile network providers such as EE and Vodafone, to non-competitive firms using the same example customer service on telephone calls with different firms such as British Gas and EE. These firms could all potentially look at each other’s process’ to gain ideas on how to improve their own standards or processes they undertake when providing their service. By doing so, the firm can then apply the new ideas if any are generated to their process, product or service to gain an edge over a competitor.
A business can…...

Similar Documents

Business Today

...face a number of significant risks, all of which are exacerbated by industry practices.  Here are the top 5 corruption risks. 1.  State-Owned Enterprises The foreign healthcare business is worth billions of dollars in revenues.  Pharmaceutical and medical device companies depend on foreign sales to foreign hospitals and doctors.  These interactions are governed by the FCPA with limitations on giving anything of value to doctors, nurses or other healthcare professionals with a corrupt intent to increase or retain business.  Many of the enforcement actions involve direct payments made to foreign hospitals or doctors in exchange for commitments to purchase or recommend drugs or devices to hospitals and/or patients. 2.  Third Party Agents In many countries, particularly China, pharmaceutical companies have to rely on a network of third party agents, subagents and distributors to interact with public hospitals, doctors and other healthcare professionals.  In China, individual agents are required for each individual public hospital, who in turn will rely on subagents.  The number can quickly add up in these markets. Due diligence review, approval and monitoring can be a real challenge for any compliance department.  Third party agents rely on systems for making improper payments to further their business and companies have to be careful to avoid or restrict such possibilities. 3.  Sponsorship of Medical Conferences A continuing area of abuse has been requests or demands by......

Words: 692 - Pages: 3

Business of Today

...directors are simply the borad. Directors being pillars of corporate governance (Cowan, 2004) should at all times act honestly and use reasonable diligence in the discharge of their duties. This is more so in light of recent major corporate issues like ENRON & Worldcomm in the United States and the Transmile case in Malaysia. In essence directors are agents of the company and as agents, they owe a duty of trust to the company and shall do their utmost to put the interest of the company first before personal ones. Directors of a company are responsible in managing the affairs and business of the company. Some or each and every one of the shareholders will normally be involved in the company’s management for those company that are smaller in size, particularly small family companies. On the other hand, bigger company will have managers that specialized only in the conduction to the company’s business. These managers may only own a small proportion of the company’ shares. According to s142 of the Companies Act 1965, a company must have at least a registered director, manager and secretary. Every company must have at least two directors. They must be natural persons of full age. The first directors are appointed by being named in the Memorandum or Articles of Association of the company. Subsequent appointments are usually made through the general meeting. Certain requirements have to be achieved in order to qualify to be a director. Certain persons are disqualified from......

Words: 762 - Pages: 4

The Business Environment

...Assignment #1 The Business Environment Roshaunda Chambers Professor Cole Bus-100 April 29, 2012 The role of a business in the economy in this day of time is beneficial for every country all over the world. This type of function began as early as the 1900’s in the form of sharing and trading. As the world change people created ways to produce income that was vital for that country! Business world produces a study flow to keep everything revolving around the world. A business can produce jobs that gave every nation and culture around the world an advantage to continue to build and grow its country. The advantage of a profit organization ensures the needs of that particular function. It aids the company from a monetary standpoint to help low income families that are in need. A disadvantage of this company can affects someone that is their only for self gain and money fraud. A non-profit organization is an organization that is created through charity sources. Someone at any given time is able to sponsor this organization making monetary gifts that can help the needs of anyone around the world. This organization can aid the economy when there is not enough money to carry the needs of the less fortune. The disadvantage of this organization can affect major companies around the world. It just takes one person in that committee to make the wrong decision to create a slander for others that are in this in order to help the people in the United States of......

Words: 662 - Pages: 3

Business Today

...Unit 1 Assignment In today’s world businesses are struggling to stay a float. Every business owner and manager are constantly trying to cut any wistful spending possible. Many jobs these days are considered temporary, these jobs usually do not offer any benefits nor retirement plans (Judge, 2013) thus usually making working conditions worse. Many companies do not put the effort into improving working conditions because many of the workers are temporary and employee turnover is so high. The company figures they could just other workers to replace them. Companies should care about their employees, without qualified workers the company could not survive. Though many companies these days have taken so much from their worker like benefits and pay increase many it’s a wonder if there are any companies that really care about their employees well being. Organizations should take the responsibility for their employee’s job security to some extent. The main goal for an organization is to make money. But, organizations need to take actions of ensuring workers are receiving fair compensation and working conditions. Companies that offer benefits, fair compensation and good working conditions are usually the companies that continue to grow. An example is a customer service based company where the employees for the most part are pleased with the company, therefore offers better customer service to the customers. That in returned brings customers back therefore making the......

Words: 611 - Pages: 3

The Business Environment

...The Business Environment A business exists as an organization engaged in the selling of goods (products), services, or both to the organizations consumers. The organizations business plan or model regulates the result of an active and productive business. Businesses exist as prevalent in economy in which support a capitalist economy. The majority of the businesses exist as privately owned and operated. The businesses managed to earn profit to increase the capital of the owners. However, some businesses may exist as a nonprofit or state-owned business. Additionally, businesses in owned by more than one individual or shareholders exist as a company. The following paragraphs will serve as documentation in reference to the role businesses play in the economy, a compare and contract of for profit and nonprofit organizations, fiscal and monetary policy, accessing global markets, social responsibility, and stakeholder groups. Role of Business in the Economy Business and economy are virtually inseparable. The economy can only exist because of businesses, and a business only exists because of other businesses. Every business, from a lemonade stand to a major car manufacturer, requires other businesses to support their operations. Moreover, everyone requires products from businesses to live in today’s environment. According to Kelly and McGowan, economy exists as “a financial and social system of how resources flow through society, from production, to distribution, to......

Words: 1035 - Pages: 5

Legal Environment of Business

...It may also result in academic dismissal from the University. | | | |SKS7000-8 |Dr. Milton Kabia | | | | |Doctorial Comprehensive Strategic |Assignment 5- Legal Environment of Business | |Knowledge | | | | | Faculty Use Only Legal Environment of Business Introduction Organization, especial while the company transitions from private to public ownerships in few months. They would like to have descriptions and analyses of vital economic and legal factors that may affect their horizontal construction company while it grows both domestically and internationally. Accordingly, this paper will discuss and analyze findings of some pertinent legal and economic...

Words: 1895 - Pages: 8

Business Environment

...Contents Introduction 2 Task 1- Understand the Organisational Purposes of Business 2 A) The main purposes of business 2 Local councils 2 Small businesses: 3 Multinational corporations 4 British Telecom 5 B) Stakeholder Influence Map for BT 6 C) Social, Economic and Environmental Responsibilities for BT 8 Task 2- The economic, social and global environment 9 A) Real Life Example on command, free enterprise system and a mixed economy 9 Example one 9 Example two 10 Example three 10 B) The Effect of Government Fiscal and Monetary Policy 11 Physical policy: 11 Monetary policy: 13 C) Competition Policy 13 Task 3- The Behaviour of Organisation in their Market Environment 14 A) Market Structure Types 14 Pure competition : 14 Monopoly competition: 14 Oligopoly 14 C) Business and Culture Environment Shaping BT 15 Task4- The Significance of the Global Factors that Shape National Business Activities 15 A) International Trade 15 B) Global Factors 15 C) Macroeconomic Concerns 15 References 17 Appendixes 18 Business Environment Introduction Task 1- Understand the Organisational Purposes of Business A) The main purposes of business This section will identify and explain in detail the main purposes of organisation in the following businesses: * Local councils * Small businesses * Multinational corporations * British Telecom Local councils The local council is non profit organization where their......

Words: 4530 - Pages: 19

Business Environment

... Business environment Introduction Business environment is the combination of two factors internal and external. These two factors influence a company’s operating situation. In other words business environment is the sum of living person, location and natural resources. In business environment internal factors include five M’s such as, man, material, money, machine and management. These internal factors change the function of business. External factor are those factors which are beyond the control of business enterprise. These external factors are government factors, legal factors, physical factors and demographical factors. External environment or factors are also two types, micro environment and macro environment. Micro environment consist of suppliers, customers, market intermediaries, competitors and public. Micro environment is also known as operating environment. Another external environment or factors macro environment consists of non-economic environment, political environment, technological environment and socio-cultural environment etc. Business environment has some typical characteristics. It is a constantly changing system. Both short term and long term impact works on business environment. One of the most important characteristics of business environment is uncertainty. Task1 1(a) Identify the purposes of different types of organization There are many different types of organization in our socio-economic life. One organization is different from another......

Words: 2647 - Pages: 11

Business Environment

...Contents 1. Introduction 2 2. Objectives 2 3. Business Environment 2 3.1. Demographic environment 2 3.2. Economic environment 2 3.3. Geographical and ecological environment 3 3.4. Legal environment 3 3.5. Technological environment 3 3.6. Social environment 3 3.7. Educational and cultural environment 3 3.8. Political environment 3 4. About Mahindra & Mahindra 4 5. Task 1. 5 6. Task 2. 6 6.1. Market Penetration 6 6.2. Market Development 7 6.3. Product development 7 7. Conclusion 7 8. Recommendation 8 9. References 8 1. Introduction The term business is understood and explained in different ways by different people. For some, business is an activity, for some it is a method of transacting, for sonic others, it is a method of money making and some people argue that business is an organized activity to achieve certain predetermined goals and objectives. Based on all these meaning of justness, we may define business as gainful activity through which various elements of society conduct exchanges of the desirable things. 2. Objectives  To understand what the business environment is and why this is important for a company  Management student to understand its fundamental concept on business activity  To develop a right perspective about business environment 3. Business Environment Business involves activities, which links an organization with outside world. Within an organization, a business is governed by the behavior of its employees,......

Words: 2139 - Pages: 9

Business Today

... online trust 8 2.2.1 Define customer trust in online shopping 8 2.2.2 The importance of customer trust in online shopping 9 2.2.3 Findings from past studies 9 2.3 E-business Vs E-drugstore 12 2.3.1 A glance of pharmaceutical industry & drugstore sector 14 2.4 Website factors that might affect the perceptions of customers’ online trust 18 2.4.1 Website factors VS consumer factors 18 2.4.2 Discussion of website factors 19 3. Methodology, data, and model 36 3.1 Methodology and data collection 36 3.2 Model & analysis 37 3.2.1 Variance analysis 37 3.2.2 Factor analysis 40 4. Results and discussion 43 4.1 Results for research questions 43 4.2 Results from factor analysis 47 5. Managerial implications 49 6. Limitation and further research 54 7. Conclusion 56 Appendix A: Customer trust survey 57 Appendix B: Factor analysis of attributes of websites factors (Heavy Loadings) 58 Appendix C: Frequency table 59 References 60 1. Introduction 1.1 Research motivation and objectives It is commonly accepted that e-business is beneficial to the further growth and success of businesses, government, and not-for-profit organizations (Sultan et al, 2002). Specifically, the advent of the Internet has brought new business opportunities to the retail industry. However, no matter how wonderful e-business is, many small businesses still cannot participate in the online market due to a lack of customer trust. While previous academic studies have emphasized the significance......

Words: 16013 - Pages: 65

The Business Environment

...HNC Business Student Name: Claire Broughton Student Number: 30272054 Unit Title: Business Environment (Unit 1) Unit Leader: Nigel Groser Understanding the Business Environment Date of Submission: 15/11/2015 Word Count: 4342 Introduction The purpose of this report is to demonstrate an understanding of the business environment. Research into the John Lewis Partnership PLC will be utilised to show an understanding of the organisational purposes of businesses and the nature of the national environment in which businesses operate. The report will also address the behaviour of organisations in their market environment as well showing the significance of the global factors that shape national business activities. Section 1 1.1 Types of Organisation The John Lewis Partnership was founded in 1929 by John Spedan Lewis; the eldest of two sons whose father, John Lewis, had opened the first John Lewis store in 1864 in Oxford. Spedan Lewis has a unique approach to business in that the happiness of the employees was at the centre of his mind. He began to set up new practices such as a third weeks paid holiday, shorter working days, a staff committee and an in-house magazine, the Gazette, which is still published today. By 1914, these rather dramatic and forward-thinking adjustments to the staff working conditions were causing conflict between Spedan Lewis and his father, who was alarmed at such changes. This conflict resulted in Spedan Lewis withdrawing his active involvement......

Words: 5393 - Pages: 22

Business Environment

...Doing Business 2015 India Economy Profile 2015 India Doing Business 2015 India © 2014 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org All rights reserved. 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. This work is available under the Creative Commons Attribution 3.0 Unported license (CC BY 3.0) http://creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: World Bank. 2014. Doing...

Words: 36085 - Pages: 145

Business Environment

...ABE Level 5 Diploma Unit Title: The Business Environment Learning Outcome: 1. Understand the significance of the environment on business activity. Please note that the content of this Lecture Guide is listed in its recommended teaching order, rather than in numerical order. Indicative Content: 1.1.1 Explain the business organisation as a transformation process: • Business organisations undergo a transformation process from inputs into outputs, using physical inputs plus finance and skills to produce both goods and services. • Use examples from both manufacturing and service sector organisations to illustrate the process. 1.1.2 Describe the different ways in which a business may structure its activities: • Organisational structures can be based on the functions of the organisation, its product ranges, or geographical regions. Alternatively some less hierarchical organisations may use a matrix structure, especially if the firm is project based. 1.2.1 Discuss the complexity, volatility and uniqueness of an organisation's environment: • The organisation in its environment has to face a wide range of internal and external influences which affect business activity. • The immediate or operational environment interacts with suppliers, competitors, the labour market and financial institutions. • The general or contextual environment consists of economic, political, legal, and social factors. Each functional area of the organisation may be affected. • Whilst organisations have......

Words: 4776 - Pages: 20

Business Environment

...Unit Title: The Business Environment Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Learning Outcome 1 The learner will: Understand the significance of the environment on business activity. Assessment Criteria The learner can: Indicative Content 1.1 Explain the features of business activity. 1.1.1 Explain the business organisation as a transformation process. 1.1.2 Describe the different ways in which a business may structure its activities. 1.2 Discuss the complex interactions that operate between a business and its environment. 1.2.1 Discuss the complexity, volatility and uniqueness of an organisation's environment. 1.2.2 Explain the influence of shareholders on the internal environment of an organisation. 1.2.3 Outline the nature of the external environment (PEST). 1.3 Explain the need for change and its management within an individual business. 1.3.1 Discuss the need to monitor changes in the external environment. 1.3.2 Discuss the implications of environmental change for a business, its stakeholders and society. 1.3.3 Explain reasons for resistance to change by firms, managers and employees. 1.3.4 Describe ways in which resistance to change may be overcome. Learning Outcome 2 The learner will: Understand the structure and organisation of business. Assessment Criteria The learner can: Indicative Content 2.1 Discuss the impact of industrial and legal structure and size on organisational behaviour. 2.1.1 Classify...

Words: 1141 - Pages: 5

Business Environment

...seven major categories of HR activities. Identify the three different roles of HR management. Discuss the three dimensions associated with HR management as a strategic business contributor. Explain why HR professionals and operating managers must view HR management as an interface. Discuss why ethical issues and professionalism affect HR management as a career field. q q q q q 3 HR TRANSITIONS HR Management Contributes to Organizational Success More effective management of human resources (HR) increasingly is being seen as positively affecting performance in organizations, both large and small. A joint venture between General Electric and a Japanese company, GE Fanuc is a manufacturer of factory automation and control products. Headquartered in Virginia with 1,500 employees, the HR department primarily performed administrative support activities. But when Donald Borwhat, Jr., took over as Senior Vice President of Human Resources, he and his staff began by restructuring and decentralizing the HR entity so that each functional area of the company has an HR manager assigned to it. The HR managers were expected to be key contributors to their areas by becoming knowledgeable about the business issues faced by their business functional units. Today, HR managers participate in developing business strategies and ensure that human resource dimensions are considered. For instance, the HR manager for manufacturing has HR responsibilities for 600 employees. In that......

Words: 292066 - Pages: 1169