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One way to judge the performance of a company

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bhumika.k.shah Legendary Member Default Avatar
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One way to judge the performance of a company

Post Sat Mar 27, 2010 7:46 am
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 fous 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

firstly I dint quite get what the question is tryna ask
Source - OG 12th edition

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rockeyb Legendary Member
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Post Sat Mar 27, 2010 8:38 am
This is a must be true EXCEPT question . So no conclusion we need to find a statement that is not true in reference to the stimulus .

Let look at the question :
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

Translate : Which one of the following will not be a valid reason for comparison with non- competitors .

Dont fall in to rather than thing its only to confuse you .

Now lets look at our options .

(A) Comparisons with competitors are most likely to fous on practices that the manager making the comparisions already employs.
[If the manager is already employing practices that the competitor has there is no use of comparison. This is against the premise that states comparison is for better development, eliminate ]
(B) Getting "inside" information about the unique practices of competitors is particularly difficult
[knowing practices of competitor is difficult . But may be its easier to get information of non competitor so this can act as a valid reason for comparison against non-competitor , eliminate ]

(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
[Again a valid reason for comparison with non-competitors , eliminate ]

(D) Managers are generally more receptive to new ideas that they find outside their own industry
[Their own industry means non-competitors , eliminate ]

(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
[Only remaining option , correct .]

Whats the OA ?

_________________
“Know thyself” and “Nothing in excess”

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