Benchmarking: Effective Business Tool

Let us just imagine you are into a business with a wide range of products and huge variety of product lines. How would you get to know you are profitable in the market compared to your rivals or not.

Mumbai, India (prHWY.com) December 3, 2012 - For a firm to be profitable they should have either more sales than their rivals, or relatively less cost of production compared to their rivals.

Well both the options have their own pros and cons. However, for a firm to survive in the market and to compete successfully, they need to identify, understand and adapt the best practices followed by the other companies and also the rival firms in some cases. So, in order for the firm to do things faster, better and cheaper they use a business strategy called Benchmarking.

Benchmarking is an effective business tool used by the present day companies to compare its business processes or performance metrics to the industry bests and/or best practices from other industries. The performance metrics would basically include quality, time and cost. Typically, benchmarking helps the management in identifying the best firms in the industry and their best practices.

For instance, a company which cannot assemble desired number of engines can benchmark itself to its rival's every process of engine assembly keeping in mind the time and cost incurred within.

Source for Leaning Benchmark, Lean Case Study on benchmarking visit: casestudy.co.in

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Tag Words: benchmark, business strategy, benchmarking, effective business

Categories: Business

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