Find all School-related info fast with the new School-Specific MBA Forum

It is currently 16 Apr 2014, 08:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

One way to judge the performance of a company is to compare

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
3 KUDOS received
Manager
Manager
Joined: 06 Jul 2005
Posts: 119
Location: Bangalore, India
Followers: 1

Kudos [?]: 4 [3] , given: 0

One way to judge the performance of a company is to compare [#permalink] New post 30 Oct 2005, 04:44
3
This post received
KUDOS
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
SVP
SVP
Joined: 16 Nov 2010
Posts: 1698
Location: United States (IN)
Concentration: Strategy, Technology
Followers: 29

Kudos [?]: 263 [0], given: 36

GMAT Tests User Premium Member Reviews Badge
Re: One way to judge the performance of a company [#permalink] New post 29 Apr 2011, 04:33
The answer is E.
_________________

Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant)

VP
VP
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1368
Followers: 9

Kudos [?]: 120 [0], given: 10

GMAT Tests User
Re: One way to judge the performance of a company [#permalink] New post 20 May 2011, 06:21
clean E here giving no reason at all.
_________________

Visit -- http://www.sustainable-sphere.com/
Promote Green Business,Sustainable Living and Green Earth !!

Intern
Intern
Joined: 29 Jun 2011
Posts: 37
Followers: 0

Kudos [?]: 2 [0], given: 0

Re: One way to judge the performance of a company [#permalink] New post 21 Aug 2011, 01:48
shanewyatt wrote:
bsv180985 wrote:
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


Was between A and E for me and my final choice is E

(A) Comparisons with competitors are most likely to fous on practices that the manager making the comparisions already employs

This is saying benchmarking with competitors is not that helpful - but the question is which one of these isn't an argument against benchmarking with non-competitors. (A) is a good reason that companies should benchmark with non-competitors.

(B) Getting "inside" information about the unique practices of competitors is particularly difficult

This is effectively saying that it requires too much effort to benchmark against the competitors, so the better option is to benchmark with non-competitors. Not an argument against benchmarking with non-competitors.

(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

This is promoting benchmarking with non-competitors.

(D) Managers are generally more receptive to new ideas that they find outside their own industry

Promoting benchmarking with non-comptitors.

(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 is suggesting that knowledge of their product markets is what makes a company successful - so in this case the company would have to benchmark with competitors - which is obviously not an argument for benchmarking with non-competitors. This is my choice.


Thanks for good explanation..this is the only explanation that I can really understand.... :P
Senior Manager
Senior Manager
User avatar
Status: MBAing!!!!
Joined: 24 Jun 2011
Posts: 312
Location: United States (FL)
Concentration: Finance, Real Estate
GPA: 3.65
WE: Project Management (Real Estate)
Followers: 6

Kudos [?]: 43 [0], given: 56

GMAT Tests User
Re: One way to judge the performance of a company [#permalink] New post 25 Oct 2011, 11:26
I picked E...understanding the question was very hard. Paraphrasing was warranted for me. "which one was not necessarily a valid reason for benchmarking against non competitors??"
Manager
Manager
Joined: 18 Jun 2010
Posts: 151
Followers: 0

Kudos [?]: 13 [0], given: 2

GMAT Tests User
Re: One way to judge the performance of a company [#permalink] New post 25 Oct 2011, 20:37
+1 for E
Director
Director
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 708
Followers: 5

Kudos [?]: 92 [0], given: 37

GMAT Tests User
Re: One way to judge the performance of a company [#permalink] New post 25 Oct 2011, 20:43
+1 for E.

Crick
1 KUDOS received
Manager
Manager
Joined: 11 Jul 2012
Posts: 54
Followers: 7

Kudos [?]: 38 [1] , given: 0

One way to judge the performance of a company is to compare [#permalink] New post 11 Jul 2012, 08:35
1
This post received
KUDOS
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
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 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 or markets.
Moderator
Moderator
User avatar
Joined: 01 Sep 2010
Posts: 2173
Followers: 170

Kudos [?]: 1505 [0], given: 610

GMAT Tests User Premium Member
Re: One way to judge the performance of a company is [#permalink] New post 11 Jul 2012, 10:03
Expert's post
E is the only that is not related to a benchmarking but take a look of the inside strategy of a company. hence is the correct answer
_________________

KUDOS is the good manner to help the entire community.

Intern
Intern
Joined: 17 Jun 2012
Posts: 15
GPA: 3.71
Followers: 0

Kudos [?]: 0 [0], given: 0

Re: One way to judge the performance of a company is [#permalink] New post 11 Jul 2012, 10:17
I would go with E.

All other options are in favor of benchmarking against non – competitors. Only E favors benchmarking against competitors
Senior Manager
Senior Manager
Joined: 06 Aug 2011
Posts: 402
Followers: 2

Kudos [?]: 41 [0], given: 81

GMAT Tests User CAT Tests
Re: One way to judge the performance of a company is to compare [#permalink] New post 24 Oct 2012, 11:02
took...2:37 minutes to solve :(..

bt chose rite ans E..
_________________

Bole So Nehal.. Sat Siri Akal.. Waheguru ji help me to get 700+ score !

Manager
Manager
Joined: 02 Jan 2011
Posts: 201
Followers: 1

Kudos [?]: 31 [0], given: 22

GMAT Tests User
Re: One way to judge the performance of a company is to compare [#permalink] New post 08 Nov 2012, 01:12
E all the way. Took 1.30 mins to get the answer.
Senior Manager
Senior Manager
Joined: 16 Dec 2011
Posts: 453
Followers: 8

Kudos [?]: 134 [0], given: 70

Re: One way to judge the performance of a company is to compare [#permalink] New post 25 Apr 2013, 07:23
All duplicate threads on this topic have been merged.

Please check and follow the Guidelines for Posting in Verbal GMAT forum before posting anything.
Intern
Intern
Joined: 22 Oct 2012
Posts: 25
Followers: 0

Kudos [?]: 1 [0], given: 25

Re: One way to judge the performance of a company is to compare [#permalink] New post 16 Jun 2013, 07:43
E.

Competition occur in case there is a conflict of interest.
Here the conflict is with regards to the market share of a particular product ( let's put it this way for a moment)
Practices that helps improve the product comes to play only by knowing the market and the competitor.
So, the 'Benchmark' should be set keeping in mind the competitor.

Non-competitor may never give the right idea for improvement of the product....and hence couldn't be useful.

E.g. Company X makes Computers...Company Y makes Computers also.

So, Company X should keep in check the movements, practices of Company Y (Same product)

Company X can't follow the policy of a non-compet. Company Z which makes Cars!
Manager
Manager
Status: Respect GMAT.. Some day u will be graced!!!
Joined: 09 Apr 2013
Posts: 119
Location: India
WE: Information Technology (Telecommunications)
Followers: 1

Kudos [?]: 19 [0], given: 14

Re: One way to judge the performance of a company is to compare [#permalink] New post 02 Dec 2013, 07:19
+1 for E .

Whenever I see an "except" question, I pay more attention to all the answer choices as it is easy to slip away and choose trap answers.

Coming back to the question, choices A, B, C and D support benchmarking against non-competitors where as only choice E supports benchmarking against competitors in an industry.
_________________

+1 KUDOS is the best way to say thanks :-)

Re: One way to judge the performance of a company is to compare   [#permalink] 02 Dec 2013, 07:19
    Similar topics Author Replies Last post
Similar
Topics:
This topic is locked, you cannot edit posts or make further replies. New One way to judge the performance of a company is to compare Neochronic 0 13 Mar 2008, 23:21
This topic is locked, you cannot edit posts or make further replies. New One way to judge the performance of a company is to compare bsv180985 0 25 Oct 2011, 20:43
This topic is locked, you cannot edit posts or make further replies. New One way to judge the performance of a company is to compare rgtiwari 0 04 Sep 2010, 06:10
This topic is locked, you cannot edit posts or make further replies. New One way to judge the performance of a company is to compare ankitranjan 0 21 Dec 2010, 10:00
This topic is locked, you cannot edit posts or make further replies. New One way to judge the performance of a company is to compare ajit257 0 20 May 2011, 06:21
Display posts from previous: Sort by

One way to judge the performance of a company is to compare

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page   Previous    1   2   3   [ 54 posts ] 



GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.