Does your organization (or one you are familiar with) use financial benchmarking? Would you use it...

Does your organization (or one you are familiar with) use financial benchmarking? Would you use it if you had a chance to do so? Why or why not?

Solutions

Expert Solution

Yes, I am familiar with some companies that use financial benchmarking. Yes, I would certainly use financial benchmarking if given a change.

Explanation:
There are basically two types on financial benchmarking, they are internal and external benchmarking.
Internal benchmarking includes comparison between teams performance, individual or group performance within an organization.
External benchmarking includes peers comparison with respect to performance and practices of an organization.

Financial benchmarking demonstrates how best performing firms complete any particular process in question , it helps executives in decision making.
Financial benchmarking helps companies to identify winning strategies which enabled best performing firms to be successful. It also examines how the best companies compete which is helpful for small and medium size companies in long term.
There are many financial benchmarking business intelligence softwares available in the market that shows the financials of a company compared to their competitors.
Financial benchmarking helps a company in identifying the improvement opportunities. It also helps companies to look into future and build winning strategies and plans through which it can stay for longer term in the market and make profits.

jeff jeffy answered 1 year ago

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