Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 29 May 2017, 00:22

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

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

Author Message
TAGS:

### Hide Tags

Manager
Joined: 06 Jul 2005
Posts: 117
Location: Bangalore, India
Followers: 1

Kudos [?]: 90 [18] , given: 0

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

### Show Tags

30 Oct 2005, 05:44
18
KUDOS
64
This post was
BOOKMARKED
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
Joined: 16 Nov 2010
Posts: 1666
Location: United States (IN)
Concentration: Strategy, Technology
Followers: 34

Kudos [?]: 533 [0], given: 36

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

### Show Tags

29 Apr 2011, 05:33
_________________

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

GMAT Club Premium Membership - big benefits and savings

VP
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1331
Followers: 17

Kudos [?]: 254 [0], given: 10

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

### Show Tags

20 May 2011, 07:21
clean E here giving no reason at all.
_________________

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

Intern
Joined: 29 Jun 2011
Posts: 36
Followers: 0

Kudos [?]: 5 [0], given: 0

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

### Show Tags

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....
Senior Manager
Status: MBAing!!!!
Joined: 24 Jun 2011
Posts: 297
Location: United States (FL)
Concentration: Finance, Real Estate
GPA: 3.65
WE: Project Management (Real Estate)
Followers: 6

Kudos [?]: 52 [0], given: 56

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

### Show Tags

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??"
Manager
Joined: 18 Jun 2010
Posts: 146
Followers: 0

Kudos [?]: 35 [0], given: 2

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

### Show Tags

25 Oct 2011, 21:37
+1 for E
Director
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 691
Followers: 6

Kudos [?]: 176 [0], given: 37

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

### Show Tags

25 Oct 2011, 21:43
+1 for E.

Crick
Manager
Joined: 11 Jul 2012
Posts: 52
Followers: 12

Kudos [?]: 974 [1] , given: 0

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

### Show Tags

11 Jul 2012, 09:35
1
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
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.
Moderator
Joined: 01 Sep 2010
Posts: 3182
Followers: 861

Kudos [?]: 7331 [0], given: 1065

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

### Show Tags

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

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

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

### Show Tags

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
Senior Manager
Joined: 06 Aug 2011
Posts: 399
Followers: 2

Kudos [?]: 213 [0], given: 82

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

### Show Tags

24 Oct 2012, 12:02
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
Joined: 02 Jan 2011
Posts: 197
Followers: 1

Kudos [?]: 53 [0], given: 22

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

### Show Tags

08 Nov 2012, 02:12
E all the way. Took 1.30 mins to get the answer.
Senior Manager
Joined: 16 Dec 2011
Posts: 432
Followers: 11

Kudos [?]: 214 [0], given: 70

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

### Show Tags

25 Apr 2013, 08:23
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
Joined: 22 Oct 2012
Posts: 25
Concentration: Entrepreneurship, Marketing
Followers: 0

Kudos [?]: 1 [0], given: 27

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

### Show Tags

16 Jun 2013, 08:43
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
Joined: 09 Apr 2013
Posts: 150
Location: India
WE: Supply Chain Management (Consulting)
Followers: 1

Kudos [?]: 104 [0], given: 24

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

### Show Tags

02 Dec 2013, 08:19
+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

"Pay attention to every detail"

Senior Manager
Joined: 10 Mar 2013
Posts: 283
GMAT 1: 620 Q44 V31
GMAT 2: 690 Q47 V37
GMAT 3: 610 Q47 V28
GMAT 4: 700 Q50 V34
GMAT 5: 700 Q49 V36
GMAT 6: 690 Q48 V35
GMAT 7: 750 Q49 V42
GMAT 8: 730 Q50 V39
Followers: 12

Kudos [?]: 103 [0], given: 2405

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

### Show Tags

17 Apr 2014, 15:48
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?
Director
Status: Verbal Forum Moderator
Joined: 17 Apr 2013
Posts: 611
Location: India
GMAT 1: 710 Q50 V36
GMAT 2: 750 Q51 V41
GMAT 3: 790 Q51 V49
GPA: 3.3
Followers: 78

Kudos [?]: 498 [0], given: 298

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

### Show Tags

23 Jun 2014, 04:54
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.
_________________

Like my post Send me a Kudos It is a Good manner.
My Debrief: http://gmatclub.com/forum/how-to-score-750-and-750-i-moved-from-710-to-189016.html

Affiliations: Oracle certified java programmer , adobe certified developer
Joined: 14 Jul 2013
Posts: 124
GMAT Date: 02-12-2015
GPA: 3.87
WE: Programming (Telecommunications)
Followers: 1

Kudos [?]: 23 [0], given: 37

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

### Show Tags

30 Nov 2014, 00:02
rahuluec 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

only E sounds like not supporting benchmarking with competitors. So I go with E.
_________________

IF IT IS TO BE , IT IS UP TO ME

Affiliations: Oracle certified java programmer , adobe certified developer
Joined: 14 Jul 2013
Posts: 124
GMAT Date: 02-12-2015
GPA: 3.87
WE: Programming (Telecommunications)
Followers: 1

Kudos [?]: 23 [0], given: 37

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

### Show Tags

06 Dec 2014, 03:03
rahuluec 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

only E suggest that benchmarking with other companies is not of direct profit
_________________

IF IT IS TO BE , IT IS UP TO ME

Director
Joined: 10 Mar 2013
Posts: 597
Location: Germany
Concentration: Finance, Entrepreneurship
GMAT 1: 580 Q46 V24
GPA: 3.88
WE: Information Technology (Consulting)
Followers: 17

Kudos [?]: 357 [0], given: 200

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

### Show Tags

21 Feb 2015, 03:28
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:

So, what are we looking for ? 4 Arguments strengthen the point that benchmarking against non competitor companies is better than against direct competitors. And ONLY 1 Choice will be a WEAKENER (or neutral) - that would be a CORRECT answer choice.

(A) Comparisons with competitors are most likely to fous on practices that the manager making the comparisions already employs --> strengthens the point for benchmarking against companies with which it is not in competition
(B) Getting "inside" information about the unique practices of competitors is particularly difficult --> strengthens the point for benchmarking against companies with which it is not in competition
(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 --> strengthens the point for benchmarking against companies with which it is not in competition
(D) Managers are generally more receptive to new ideas that they find outside their own industry --> strengthens the point for benchmarking against companies with which it is not in competition
(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 --> CORRECT. This one weakens the point that benchmarking against non competitor companies is better than against direct competitors
_________________

When you’re up, your friends know who you are. When you’re down, you know who your friends are.

800Score ONLY QUANT CAT1 51, CAT2 50, CAT3 50
GMAT PREP 670
MGMAT CAT 630
KAPLAN CAT 660

Intern
Joined: 11 Aug 2014
Posts: 24
Followers: 0

Kudos [?]: 1 [0], given: 2

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

### Show Tags

09 Apr 2015, 12:42
Any of the following, if true, is a valid reason for bench marking the performance of a company against companies with which it is not in competition rather than against competitors EXCEPT:
Plz Can explain the question stem
I'm little confused about except questions
Re: One way to judge the performance of a company is to compare   [#permalink] 09 Apr 2015, 12:42

Go to page   Previous    1   2   3   4    Next  [ 72 posts ]

Similar topics Replies Last post
Similar
Topics:
2 An electronics company’s two divisions showed consistent performance o 3 16 Jan 2017, 22:35
One way to judge the performance of a company is to compare 1 25 Apr 2013, 08:13
One way to judge the performance of a company is to compare 0 08 Nov 2012, 02:12
2 The two divisions of a high-tech company have performed 11 15 Aug 2013, 05:35
8 A company s two divisions performed with remarkable 15 05 Sep 2015, 20:50
Display posts from previous: Sort by

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

 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®.