ExpertEasy2 marksMultiple Choice
ACCA · Question 28 · Performance measurement and control
Section B - Case 3: GlobalCare
GlobalCare is an international NGO focused on providing clean drinking water in developing nations.
GlobalCare wants to improve its logistics for delivering drilling equipment. It decides to study the logistics processes of 'FastTrack', a leading commercial courier company known for its world-class delivery speeds, even though FastTrack is not in the NGO sector.
What type of benchmarking is GlobalCare undertaking?
Section B - Case 3: GlobalCare
GlobalCare is an international NGO focused on providing clean drinking water in developing nations.
GlobalCare wants to improve its logistics for delivering drilling equipment. It decides to study the logistics processes of 'FastTrack', a leading commercial courier company known for its world-class delivery speeds, even though FastTrack is not in the NGO sector.
What type of benchmarking is GlobalCare undertaking?
Answer options:
A.
Internal benchmarking
B.
Competitive benchmarking
C.
Functional benchmarking
D.
Strategic benchmarking
How to approach this question
Identify the type of benchmarking that involves looking outside your own industry to find the best practitioner of a specific business function.
Full Answer
C.Functional benchmarking✓ Correct
Functional benchmarking (also known as generic or best-in-class benchmarking) involves comparing a specific business function or process (like logistics, HR, or IT) against the organization that is considered the best at that function, regardless of what industry they operate in.
Common mistakes
Confusing functional benchmarking with competitive benchmarking.
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