Benchmarking Essay Example | Topics and Well Written Essays - 500 words

Benchmarking - Essay ExamplePerformance benchmarking provides a way in which organizations compare its performances with set performance metrics. Performance benchmarking takes the form of followuping the companys income statements and balance sheet to ensure they are made in accordance with the required standards. The performance gaps identified fundament be prioritized, corrected and follow-up can be made to ensure improvement in performance. Strategic benchmarking ideally is the comparison of companies to the long-term goals and objectives. It additionally involves identifying the winning strategies employed by top organizations and adopting them to the organizational strategies. Strategic benchmarking is majorly utilized by the top level management. Importance of benchmarking There are several key advantages of benchmarking. One major advantage is that it leads to cost-cutting for the businesses. Benchmarking lower the task costs as a company can identify that a top company i s used technology instead of labor. Based on this review the company can adopt the technology has aided in cost-cutting. Benchmarking boosts a companys product quality. A company can decide to barter for a rival companys products for review. The information that will be acquired may utilize in developing a product whose quality is exchangeable or even better compared to that of the competitors. Benchmarking can aid in increasing a companys sales and profits. A company that is involved in benchmarking tends to improve its products, services, and even processes.