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

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

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Updated on: 29 Aug 2019, 09:03
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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 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 non competitors 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

Verbal Question of The Day: Day 127: Sentence Correction

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Originally posted by rahuluec on 30 Oct 2005, 05:44.
Last edited by jeffn on 29 Aug 2019, 09:03, edited 2 times in total.
Renamed the topic and edited the question.
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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17 Oct 2017, 12:09
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We need to find and eliminate the four answer choices that are VALID reasons "for benchmarking the performance of a company against companies with which it is not in competition rather that against competitors." Before diving into the answer choices, let's make sure we are clear about the given information:

• "Benchmarking" is a way to judge the performance of a company by comparing it with other companies.
• Notice the word "One" in the first sentence; benchmarking is just ONE way to judge the performance of a company. Benchmarking is not the ONLY way to judge the performance of a company.
• Benchmarking permits the manager of a company to discover better industrial practices.
• Benchmarking can provide a justification for the adoption of good practices.

From the question stem, we can infer that there are valid reasons for benchmarking the performance of a company against its competitors, but what might be a valid reason for benchmarking the performance of a company against noncompetitors rather than against competitors? Any valid for reason for doing so must be eliminated:

Quote:
(A) Comparisons with competitors are most likely to focus on practices that the manager making the comparisons already employs

This suggests that benchmarking against competitors probably will not help a company discover better industrial practices. If such an analysis only reveals practices that the company already employs, what's the point? Choice (A) seems to suggest that benchmarking against noncompetitors, on the other hand, might focus on practices that managers don't already employ and thus be more useful.

You might be thinking, "Well, we can't say for sure that benchmarking against noncompetitors doesn't have the same disadvantage." That might be true, but at the very least choice (A) gives us no reason to believe that benchmarking against noncompetitors has the same disadvantage. In that case, choice (A) is neutral towards benchmarking against noncompetitors and negative towards benchmarking against competitors. This is a valid reason for benchmarking against noncompetitors instead of competitors, so (A) should be eliminated.

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

We know that benchmarking permits the manager of a company to discover better industrial practices. But what if competitors are intent on hiding such industrial practices from its competitors? In that case, it might be difficult to discover better industrial practices from competitors. If it's easier to get "inside" information about the unique practices of noncompetitors, then it would be easier to discover better industrial practices from those companies. (B) is a valid reason for benchmarking against noncompetitors instead of competitors, so it should be eliminated.

Quote:
(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

If companies that compete with each other are likely to have comparable levels of efficiency, it is unlikely that studying the practices of a competitor would help make your company any more efficient than your competitors. In other words, at best, you might end up learning some new practices that make your company about as efficient as it was to begin with. Studying noncompetitors, on the other hand, is likely to reveal practices that would aid in beating competitors. This is clearly a valid reason for benchmarking against noncompetitors instead of competitors, so choice (C) can be eliminated.

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

Let's say your company benchmarks against its competitors (within the same industry) and discovers some new practices that might be useful to adopt. However, if the managers at your company are not very receptive to those ideas and are unwilling to implement them, then the analysis would be of little value. Choice (D) tells us that managers are generally more receptive to new ideas from outside their own industry and thus more likely to adopt practices discovered from noncompetitors. This is a valid reason for benchmarking against noncompetitors instead of competitors, so (D) should be eliminated.

Quote:
(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

Consider the special circumstances of a company's products or markets. Competitors will likely have some of the same circumstances. Since noncompetitors will likely not have those same circumstances, benchmarking against noncompetitors probably won't help the company discover practices that take advantage of those special circumstances. Because choice (E) describes a disadvantage of benchmarking against noncompetitors, it should not be eliminated.

Choice (E) is the best answer.
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Re: One way to judge the performance of a company is to compare it with  [#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).
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Re: One way to judge the performance of a company is to compare it with  [#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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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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04 Sep 2010, 06:55
4
Need to find an option where it is not discussing about the rival companies / practices of other companies in the market, the option falling outside the scope of the argument :

(A) Comparisons with competitors are most likely to focus on practices that the manager making the comparisons already employs.
Discusses disadvantage of benchmarking against competitors.
(B) Getting “inside” information about the unique practices of competitors is particularly difficult.
Discusses rival company and difficulty of benchmarking with competitors.
(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.
Discuss advantage of benchmarking with other than competitors.
(D) Managers are generally more receptive to new ideas that they find outside their own industry.
Discuss advantage of benchmarking with other than competitors.
(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.
Discuss about market and product- out of scope of the original argument
E is the answer.
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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13 Mar 2008, 08:11
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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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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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20 Dec 2010, 20:25
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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.

Does that help? Do you have specific concerns about this particular CR question?

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

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13 Mar 2008, 07:28
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 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 it with  [#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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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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14 Sep 2016, 12:32
1
rgtiwari 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 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.

I don't understand what the question says, please can anyone elaborate...

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:

The question stem says that there are some valid reasons that the performance of a company should be benchmarked against non-competitors rather than competitors. Since , this is an except question , 4 of the answers will provide reasons to benchmark the performance of companies against non-competitors .
The correct answer will not .

Hope this helps!!
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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17 Oct 2017, 21:45
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 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 -This is a valid reason for comparisons with non-competitors.
(B) Getting "inside" information about the unique practices of competitors is particularly difficult -This is a valid reason for comparisons with non-competitors because if the information regarding processes of competitors is not available then it makes sense to compare the processes with those of 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 a valid reason for comparisons with non-competitors.
(D) Managers are generally more receptive to new ideas that they find outside their own industry -This is a valid reason for comparisons with non-competitors.
(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 option is talking about the internal processes and product line. Irrelevant.
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03 Sep 2018, 08:49
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souvik101990 wrote:

Verbal Question of The Day: Day 127: Sentence Correction

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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 focus 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 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

Every question of the day will be followed by an expert reply by GMATNinja in 12-15 hours. Stay tuned! Post your answers and explanations to earn kudos.

Situation

“Benchmarking” is a technique for judging the performance of a company by comparing it with other companies. The goal is to find and adopt better industrial practices.

Reasoning

Which one condition does NOT recommend benchmarking against noncompetors? Which one condition IS a well-founded reason to benchmark against competitiors? First, sort through the given information and the answer choices for eht question to gain an understanding of the potential advantages of disadvantages of comparing a company to its competitors or to noncompetitors. What are the reasons in favor of benchmarking against noncompetitiors information about noncompeting companies is easier to obtain; it can offer new insights; and it may be easier to put onto practice. Why them might a manager choose to benchmark against competitors? Competing companies do share special circumstances involving products and markets. If companies are often successful because of practices related ot these special circumstances within their industry, then benchmarking against competitors will reveal these practice and so be more fruitful than benchmarking against noncompetitors.

A. Since benchmarking against competitors would yield few new practices, it would be better to b benchmark against noncompetitors.

B. If information about competitors is hard to obtain, benchmarking against noncompetiors is preferable.

C. Since benchmarking against noncompetitors would yield practices useful in beating competitors, benchmarking against noncompetitors is preferable

D. If managers are more likely to adopt new practices learned from benchmarking against noncompetitors, then this techniques is preferable

E. Correct. This sttement properly identifies the rationalbe that supports a company's benchmarking against its competitors.
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Re: One way to judge the performance of a company is to compare it with  [#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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Re: One way to judge the performance of a company is to compare it with  [#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 it with  [#permalink]

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

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08 Mar 2016, 23:10
The question is basically asking you to choose an answer which indicates the company is in competition with competitors. Four answer choices indicate that the company is in competition with non competitors and only one would indicate it is in competition with a competitor. That one would be your answer. If I give an example say: " She is not against him." It translates into " She is in his favor.". Double negatives translate into positives.
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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12 Sep 2016, 07:04
rgtiwari 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 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.

I don't understand what the question says, please can anyone elaborate...

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:
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14 Aug 2017, 05:56
Clearly E is answer

We do not have to look for 4 answer choice which says ( no comparision with competitors and comparing with non competitors)
we have to select remaining one.

A) It says comparison with competitors has no benefit as managers already employ practices. so no need to compare with competitor , OUT
B) Getting inside info is difficult , OUT
C) It favours Benchmarking with Non competitors - OUT
D) Managers are generally open to new ideas outside their industry, OUT
E) is our answer choice.
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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19 Aug 2017, 14:02
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 -If the practices being compared are already employed, then the manager won't get any new insight. Thus, comparison with non competitor will be more beneficial.
(B) Getting "inside" information about the unique practices of competitors is particularly difficult -If getting the inside information of the competitor is difficult, then valid comparisons can't be made. Thus, comparison with non competitor will be more beneficial.
(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 a direct strengthener.
(D) Managers are generally more receptive to new ideas that they find outside their own industry -If the managers are receptive of new ideas, then going through the strategies employed by non competitors will be fruitful. Thus, comparison with non competitor will be more beneficial.
(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 option says that the manager takes advantage of the product present in the market. It is out of context.
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Re: One way to judge the performance of a company is to compare it with  [#permalink]

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18 Oct 2017, 06:10
The answer must be option E. My take :

The premise says that benchmarking permits managers to discover best practices and provides justification for adoption of best practices. The question stem is an "except type" one.

Pre-think - We need to identify options that do not justify benchmarking with non competitors over competitors.

POE:

Option A - Justifies as to why benchmarking must be done with respect to non-competitors
Option B - Insinuates that benchmarking be dobe w.r.t non-competitors
Option C - -do-
Option D - -do-
Option E - Does not justify. I.e after reading this option we can not conclude that benchmarking with non-competitors is better.

Hence option E.
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Re: One way to judge the performance of a company is to compare it with   [#permalink] 18 Oct 2017, 06:10

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