Critical Reasoning
Verbal Ability

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 One way to judge the performance of a company is to compare it with other companies. This technique, commonly called "benchmarking," permits the manager of a company to discover better industrial practices and can provide a justification for the adoption of good practices.

Any of the following, if true, is a valid reason for benchmarking the performance of a company against companies with which it is not in competition ratherthan against competitors EXCEPT:


Comparisons with competitors are most likely to focus on practices that the manager making the comparisons already employs.


Getting "inside" information about the unique practices of competitors is particularly difficult.


Since companies that compete with each other are likely to have comparable levels of efficiency, only benchmarking against non competitors is likely to reveal practices that would aid in beating competitors.


Managers are generally more receptive to new ideas that they find outside their own industry.


Much of the success of good companies is due to their adoption of practices that take advantage of the special circumstances of their products or markets.

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Option(E) is correct

Option A : Since benchmarking against competitors would yield few new practices, it would be better to benchmark against non competitors.

Option B : If information about competitors is hard to obtain, benchmarking against non competitors is preferable.

Option C : Since benchmarking against noncompetitors would yield practices useful in beating  competitors,
 benchmarking against noncompetitors is preferable.

Option D : If managers are more likely to adopt new practices learned from benchmarking against noncompetitors, then this technique is preferable.

Option E : Correct. This statement properly identifies the rationale that supports a company's benchmarking against its competitors.

The correct answer is E.

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