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

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Manager
Joined: 06 Jul 2005
Posts: 114
Location: Bangalore, India
One way to judge the performance of a company is to compare [#permalink]

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30 Oct 2005, 05:44
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Edit: This discussion has retired. Find the new thread HERE

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
Manager
Joined: 28 Aug 2010
Posts: 237
Re: One way to judge the performance of a company is to compare [#permalink]

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20 Dec 2010, 17:59
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 competi-
tion rather than against competitors EXCEPT:
(A) Comparisons with competitors are most likely
to focus on practices that the manager making
(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
the special circumstances of their products of markets.

I am having some trouble with 'except' questions, please can someone provide some pointers in dealing with such questions efficiently. thanks.
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Re: One way to judge the performance of a company is to compare [#permalink]

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20 Dec 2010, 20:25
2
1
ajit257,

In general, I'd suggest the following for EXCEPT questions:

Before you get to the answer choices, be explicit with yourself about what you expect to see in the answer choices and rephrase the question to make that clear to yourself.

For example, if the question is: "All of the following, if true, weaken the conclusion EXCEPT" then you'll expect to see 4 answer choices that weaken the conclusion and 1 that either has no bearing at all or in fact strengthens the conclusion. Tell yourself: "I'm looking for something that strengthens the conclusion or is totally irrelevant."

If the question is similar to yours posted below, you'd expect to see four answer choices that are completely logical and valid rationale for benchmarking against non-competitors and one that either provides justification for benchmarking against competitors or is irrelevant. Tell yourself: "I'm looking for an answer that would make me want to benchmark my performance against competitors or is totally irrelevant to the issue."

If you can rephrase the question to be explicit, you'll be much less likely to fall for trap answers.

Brett
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Re: One way to judge the performance of a company is to compare [#permalink]

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20 Dec 2010, 21:30
All option choices except E clearly give reasons for 2 things:(i) Why there shouldn't be benchmarking against competitors and (ii) Why there should be benchmarking against non competitors..

E neither talks about benchmarking nor about competitors/ non competitors and so does not have any impact whatsoever on the argument. Hence E is the best answer choice.

Often, in an "except" question, the correct answer choice does not have any impact on the argument. Its just a cold statement of facts, as it is in this case.
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Intern
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Location: Richmond VA
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Re: One way to judge the performance of a company is to compare [#permalink]

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21 Dec 2010, 06:44
gmatpapa wrote:
All option choices except E clearly give reasons for 2 things:(i) Why there shouldn't be benchmarking against competitors and (ii) Why there should be benchmarking against non competitors..

E neither talks about benchmarking nor about competitors/ non competitors and so does not have any impact whatsoever on the argument. Hence E is the best answer choice.

Often, in an "except" question, the correct answer choice does not have any impact on the argument. Its just a cold statement of facts, as it is in this case.

well said. IMO E. Question was bit twisting..but straight E...I wud say.
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Re: One way to judge the performance of a company is to compare [#permalink]

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21 Dec 2010, 11:00
ankitranjan 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 than against competitors EXCEPT:
(A) Comparisons with competitors are most likely to focus on practices that the manager making the
(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.

OA will be given tomorrow.

If u like the question consider giving KUDOS

IMO E.

This is from OG11. All choices except E talk the adv of gathering info about non-competing companies. So straight E....
Senior Manager
Joined: 18 Oct 2010
Posts: 393
Re: One way to judge the performance of a company is to compare [#permalink]

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10 Feb 2011, 12:53
Another one:

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
(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
Manager
Joined: 27 Oct 2010
Posts: 137
Re: One way to judge the performance of a company is to compare [#permalink]

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10 Feb 2011, 13:59
1
E. If the company takes advantage of the special circumstances, then benchmarking won't help.
Senior Manager
Joined: 18 Oct 2010
Posts: 393
Re: One way to judge the performance of a company is to compare [#permalink]

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12 Feb 2011, 14:39
intcan wrote:
E. If the company takes advantage of the special circumstances, then benchmarking won't help.

got it, thanks
Manager
Joined: 19 Nov 2010
Posts: 86
Re: One way to judge the performance of a company is to compare [#permalink]

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16 Feb 2011, 14:28
E does not relate to benchmarking or the advantage/disadvantage of benchmarking against the competitor or non-competitor. It's completely irrevelent.
Senior Manager
Joined: 18 Oct 2010
Posts: 393
Re: One way to judge the performance of a company is to compare [#permalink]

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16 Feb 2011, 19:20
bellcurve wrote:
E does not relate to benchmarking or the advantage/disadvantage of benchmarking against the competitor or non-competitor. It's completely irrevelent.
Are you saying that the OA is wrong? what is the correct answer in your opinion?
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Re: One way to judge the performance of a company is to compare [#permalink]

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18 Feb 2011, 08:27
heygirl wrote:
Another one:

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
(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

A. Valid. It could broaden the manager's perspective.
B. Valid.
C. Valid.
D. Valid
E. Only this answer choice doesn't differentiate between competitors and non competitors and talks about special circumstances. Clearly, this statement does not give any valid reason for benchmarking the performance of a company against companies with which it is not in competition rather than against competitors.

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Re: One way to judge the performance of a company is to compare [#permalink]

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27 Apr 2011, 09:31
kimball thanks for the suggestion. paraphrasing the expectation definitely helps in Except question, otherwise under time pressure such questions can easily go wrong.

i chose E but it took me 3 minutes +
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Re: One way to judge the performance of a company is to compare [#permalink]

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20 May 2011, 07:21
clean E here giving no reason at all.
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Re: One way to judge the performance of a company is to compare [#permalink]

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21 Aug 2011, 02:48
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....
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Re: One way to judge the performance of a company is to compare [#permalink]

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25 Oct 2011, 12:26
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 is to compare [#permalink]

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11 Jul 2012, 09:35
1
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
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

(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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Posts: 3423
Re: One way to judge the performance of a company is to compare [#permalink]

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11 Jul 2012, 11:03
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
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Re: One way to judge the performance of a company is to compare [#permalink]

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11 Jul 2012, 11:17
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]

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24 Oct 2012, 12:02
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]

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08 Nov 2012, 02:12
E all the way. Took 1.30 mins to get the answer.
Re: One way to judge the performance of a company is to compare   [#permalink] 08 Nov 2012, 02:12

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