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

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One way to judge the performance of a company is to compare [#permalink] New post 30 Oct 2005, 04:44
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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
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Re: One way to judge the performance of a company [#permalink] New post 29 Apr 2011, 04:33
The answer is E.
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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.
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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
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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??"
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Re: One way to judge the performance of a company [#permalink] New post 25 Oct 2011, 20:37
+1 for E
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Re: One way to judge the performance of a company [#permalink] New post 25 Oct 2011, 20:43
+1 for E.

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One way to judge the performance of a company is to compare [#permalink] New post 11 Jul 2012, 08:35
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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.
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Re: One way to judge the performance of a company is [#permalink] New post 11 Jul 2012, 10:03
Expert's post
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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
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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..
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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.
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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.
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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!
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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.
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Re: One way to judge the performance of a company is to compare [#permalink] New post 17 Apr 2014, 14:48
I was stuck between E and D, but guessed E.
In D how is Receptivity to new ideas a benefit?
In E, what does the phrase "products of markets" mean?
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Re: One way to judge the performance of a company is to compare [#permalink] New post 23 Jun 2014, 03:54
Its OG13 Question # 102

OA is E.

Why B is not correct-

This choice says that it is difficult to get inside information about the practices of competitors. So, this gives us a reason to benchmark against non competitors.
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Re: One way to judge the performance of a company is to compare   [#permalink] 23 Jun 2014, 03:54
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One way to judge the performance of a company is to compare rrkan 1 25 Apr 2013, 05:04
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One way to judge the performance of a company is to compare bsv180985 0 25 Oct 2011, 20:43
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