Critical Reasoning

One way to judge the performance ofa company is to compare it with other companies. This technique,
commonly called "benchmarking," permits the manager ofa 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 rather than against competitors EXCEPT:
(A) Comparisons with competitors are most likely to focus on practices that the manager making the
comparisons already employs.
(B) Getting "inside" information about the unique practices of competitors is particularly difficult.
(C) Since companies that compete with each other are likely to have comparable levels of efficiency, only
benchmarking against noncompetitors is likely to reveal practices that would aid in beating competitors.
(D) Managers are generally more receptive to newideas that they find outside their own industry.
(E) 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.


I am finding difficult to understand the question stem. Please help me in understanding it.

eitijan wrote:I am finding difficult to understand the question stem. Please help me in understanding it.

This question is an "except" question, one that asks you to find an answer choice that does not serve a certain purpose.

In this case the purpose is providing a reason for benchmarking against companies that a company is not in competition with rather than against companies that the company is in competition with.

So all of the answer choices but one can be expected to provide such reasons. The one that does not provide such a reason is the correct answer.

What's the correct answer? I think it should be E.

OA E

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 rather that against competitors EXCEPT:

(A) Comparisons with competitors are most likely to focus on practices that the manager making the comparisions already employs.
(B) Getting "inside" information about the unique practices of competitors is particularly difficult
(C) Since companies that compete with each other are likely to have cpmparable levels of efficiency, only benchmarking against noncompetitors is likely to reveal practices that would aid in beating competitors
(D) Managers are generally more receptive to new ideas that they find outside their own industry
(E) Much of the success of good companies is due to their adoption of practices that take advantage of the special circumstances of their products of markets

Four of the answer choices will offer a valid reason for benchmarking the performance of a company against NONCOMPETITORS.
The correct answer will be the EXCEPTION: it will offer a valid reason for benchmarking against COMPETITORS.

(A) Comparisons with competitors are most likely to focus on practices that the manager making the comparisons already employs.
Thus, the manager will not learn new practices from these competitors -- a valid reason for benchmarking against NONCOMPETITORS.
Eliminate A.

(B) Getting "inside" information about the unique practices of competitors is particularly difficult.
Thus, the manager will not be able to get "inside" information from these competitors -- a valid reason for benchmarking against NONCOMPETITORS.
Eliminate B.

(C) Since companies that compete with each other are likely to have comparable levels of efficiency, only benchmarking against noncompetitors is likely to reveal practices that would aid in beating competitors.
A valid reason for benchmarking against NONCOMPETITORS.
Eliminate C.

(D) Managers are generally more receptive to new ideas that they find outside their own industry.
A valid reason for benchmarking against NONCOMPETITORS that are outside the industry in which the manager works.
Eliminate D.

(E) Much of the success of good companies is due to their adoption of practices that take advantage of the special circumstances of their products of markets.
This answer choice is the EXCEPTION: unlike the others, it offers a valid reason for benchmarking against COMPETITORS.

The correct answer is E.