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Benchmarking - a management term that involves comparing features of business performance with 'best practice' performance in the same industry

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Introduction

Benchmarking is a management term that involves comparing features of business performance with 'best practice' performance in the same industry. Importing tried and tested practices reduces the risk of failure, which means finances do not have to engage in costly research and development for its own ideas, this would allow the business to lower cost per unit increasing market share, and ilimting competition. Benchmarking focus's on rivals allowing firms to understand weaknesses and strength of other firms, this can be exploited and used against them through advertising, to reduce customer loyalty, reducing their sale, decreasing there market share which would create less competition allowing firms to increase sale, or even prices. ...read more.

Middle

This will give the firms greater advantages over firms whom don't have these abilities, this would allow them to negotiate for information for benchmarking. By doing this it may result in other firms benchmarking against you and using it to there advantage decreasing your market share, from what you previously had Information is limiting, because large firms do not want to give away confidential data, this is why information is exchanged, by doing this it gives away weaknesses and strengths which other firms can exploit, also new innovative ideas this increases competitiveness, which in some case's firms do not need. ...read more.

Conclusion

doing this it may create problems further in the business year, that they may not be ready for, particularly very small businesses. It may also end up in the result of changing the layout of the firm costing a large amount of money will little improvement Implementing new practices may have faults, but if management's and personnel accept these changes prior to the change it would increase motivation, because its shows that employees are apart of the business and it means the employees will co-operate. Benchmarking can help but wont guarantee success ...read more.

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