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

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Manager
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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
[Reveal] Spoiler: OA

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

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30 Oct 2005, 05:55
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(A) says that it is of no use to benchmark competitors.

(B) says that it is very difficult to benchmark competitors.

(C) says that it is of no use to benchmark competitors.

(D) says that it is of little use to benchmark competitors.

(E) says that much of the success comes from the adoption of good practices of the same industry(=special circumstances of their products of markets)

I vote for (E).
_________________

Auge um Auge, Zahn um Zahn !

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

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30 Oct 2005, 12:16
E it is.
Since, every other choice seems to favor benchmarking companies that are not in direct competition.

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

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31 Oct 2005, 03:41
(E) too

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

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31 Oct 2005, 06:54
Sure, E. All other answer choices give reasons not to benchmark against competitors.

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

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31 Oct 2005, 07:36
The question stem really confused me with the negatives, but I finally got E.

What is the OA?

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

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13 Mar 2008, 07:28
1
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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 of markets.

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

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13 Mar 2008, 07:47
I will go wth B. As it is really tough to get insider information of competitors so it is better to bench mark against industry stadnards. Moreover even if you have inside information from competitor, it might be copy righted and so it will be illegal to use such information in any manner.

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

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13 Mar 2008, 08:11
2
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Ill go with E , it goes with the theory that you should benchmark against your competitors

B is wrong because it is a reason why companies should benchmark against companies outside of competitors, because they do not have access to competitive info

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

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13 Mar 2008, 17:19
E for me as well

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

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13 Mar 2008, 21:31
E

E is suggesting to adopt practices specific to products.. which means advocating against benchmarking against companies that don't make similar products.

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

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13 Mar 2008, 23:50
Please somebody tell whether E is correct or not?

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

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14 Mar 2008, 00:21
Hello All,

E is the OA.

Earlier i didnt get it but now i got it .
IT says that benchmarking at competitors wud help and benchmarking against non competitors wouldnot help. [:)]

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

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25 Nov 2009, 08:30
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 is to compare [#permalink]

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25 Nov 2009, 09:49
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(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

This statement emphasizes importance of holding focus on specific product and specific market the company is currently operating in. So it is an argument against using non-competitor companies as benchmarks

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

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25 Nov 2009, 23:15
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(A) Comparisons with competitors are most likely to fous on practices that the manager making the comparisions already employs
-No use to compare with competitors, as the company already employees the methods

(B) Getting "inside" information about the unique practices of competitors is particularly difficult
- No use to compare with competitors, as it is hard to get inside information.

(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
- No use to compare with competitors, as benchmarking against noncompetitors would to reveal practices that would beat competitors

(D) Managers are generally more receptive to new ideas that they find outside their own industry
- No use to compare with competitors, as Managers are receptive to ideas outside the 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
-The comparison with the competitors is important in this case, as practices that are adopted in similar markets are important.

Hence the answer should be E

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

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26 Nov 2009, 05:19
its E

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

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26 Nov 2009, 09:37
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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.

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

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27 Nov 2009, 01:30
Isn't it E ?

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

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04 Sep 2010, 05:54
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 of markets.

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Re: One way to judge the performance of a company is to compare   [#permalink] 04 Sep 2010, 05:54

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