Question

What is benchmarking and what are the benefits of it?

Answer 1

Most of the companies maintain some sort of quality in their working environment. And these natures of work can be compared with the rest of the companies involved in the same field of work. To specify that comparison, these companies use some sort of benchmarking process.

Benchmarking is a process where different companies compare their nature of work with other companies in the same field of business and they set certain type of standard of working. It is a matter of work from different companies which creates some standard for the work they deliver. And this standard of their work is considered and called as benchmarking. This benchmarking allows different companies to compare their work ability with other companies.

There are several advantages of benchmarking.

1. Implements creative ideas:

One of the common type of benchmarking where in which all the beneficial aspects of the company are creatively implemented for the overall development of the company. The benchmarking process helps the company find out their key features and after finding out the key features of their company, that company compares it with another company to complete the picture

2. Increased competitions:

Most of the time while doing business and while running a successful company, that company faces some strong competition from the rest of the companies.

3. Developing improvement:

It is clear about benchmarking that it deals with those findings of the company and another company which helps them find their position in the business market.

4. Identifies essential activities:

One of the best possible advantage of the benchmarking is that it can help all the companies to identify their own essential activities that can improve the profits of the company.

5. Quality of work:

Because of benchmarking once the company identifies their strengths and weakness compared with the rest of the company, then it is quite clear that all the aspects of the company need to be improved at a time to time basis.

6. Increased performance:

As it is explained earlier that the benchmarking process, identifies all the features and elements of the company which can lead them towards its success. And eventually, it also provides essential signals regarding the need and wants of the company.