BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Explanation: Benchmarking is used by organizations as a continuous improvement tool. It is the process of systematically searching for best practices, innovative ideas, and highly effective operating procedures.

Detailed explanation-2: -Continuous improvement tool Benchmarking establishes methods of measuring each area in terms of units of output as well as cost. In addition, benchmarking can support the process of budgeting, strategic planning, and capital planning (Lyonnais, 1997).

Detailed explanation-3: -In most cases benchmarking is best-practice-oriented and is part of a continuous improvement program that incorporates a feedback process. Benchmarking requires an understanding of what is important to the organization (sometimes called critical success factors) and then measuring performance for these factors.

Detailed explanation-4: -The goal of benchmarking is to create new methods or improve current processes to meet that higher standard. It’s not a one-time effort. Rather, it’s another part of continuous process improvement that the best organizations commit to if they want to stay competitive.

Detailed explanation-5: -BENCHMARKING IN THE INDUSTRIAL SECTOR In fact, Rank Xerox, a pioneer in this field, defined benchmarking as “the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders” (Camp 1989: 10).