Benchmarking in Todays Business Environment

In: Business and Management

Submitted By matjay94
Words 3114
Pages 13
University of South Wales
Advanced Management Accounting AF3S127
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…...

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