Vidyalelo
Management · Q38

Strategic Management

Graduate and Post Graduate · Management · question 38

Q38

Industry/sector benchmarking compares:

A.
Organisational performance between firms/public sector organisations in different industries or sectors
B.
Organisational performance between firms/public sector organisations in the same industry or sector
Answer
C.
Organisational performance between firms/public sector organisations in different countries
D.
Organisational performance between different divisions of the firm

Answer: Option B

Solution

Answer: Option B
Solution:
Industry/sector benchmarking compares Organisational performance between firms/public sector organisations in the same industry or sector. Competitive or Industry/sector benchmarking enables an organization to compare its performance with competitors trading in the same industry or sector. Functional or external benchmarking involves comparing your business activities with those of companies from other industries/sectors with similar processes.