CHAPTERONE 
BASIS OF BENCHMARKING 
1. Benchmarking is: 
a.	A continuous process. 
b.	A process of investigation 
that provides valuable 
information. 
c.	. A process of leaming from 
others. 
d.	A process of intensive work. 
e.	A tool that provides information 
for improving any 
business. 
2.	Main misunderstandings of 
benchmarking: 
a.	A one-time event. 
b.	A process of investigation that 
provides simple answers. 
c.	An imitation. 
d.	A quick and easy method. 
3.	Benchmarking is to obtain information 
about other organizations. 
4.	The benchmarking information is used to 
compare: 
a.	Processes of organizations. 
b.	Practices of organizations. 
c.	Performance of organizations. 
5.	Benchmarking produces information that 
helps to make decisions. 

Definition 
l.	According to Spendolini benchmarking is 
a process: 
a.	That evaluates products, services 
and work processes. 
b.	That measures our operations 
against other similar ones. 
2. The purpose ofbenchmarking is: 
a.	To improve our products and 
processes. 
3.	Benchmarking is a long-term 
activity. 
4.	Benchmarking involves actions that 
define problems and opportunities. 
5. Benchmarking partners are: 
a.	The individual s and organizations 
that provide information about 
their practices. 
6.	Benchmarking can be described as 
"leaming from others" 
7.	Benchmarking usually inc1udes 
references to compare and change. 

Benchmarking Common Models 
1.	The benchmarking model type is defined 
by the objective. 
2. Main types ofbenchmarking: 
a.	Internal. 
b.	Competitive. 
c.	Functional (generic). 
3.	Internal benchmarking analyzes 
similar organizational activities in: 
a.	Different locations. 
b.	Different departments. 
c.	Different operating units. 
d.	Different countries. 
4. Objective of internal benchmarking: 
a.	To identify the internal 
performance of an organization. 
5.	The benchmarking process "begins at 
home". 
6. Advantages ofinternal benchmarking: 
a.	Obtains data easily. 
b.	Diversifies good results. 
7.	Disadvantages ofinternal 
benchmarking: 
a.	Has a limited approach. 
b.	Is subject to internal influences. 

Benchmarking Common Models 
1.	Competitive benchmarking analyzes the 
processes of direct competitors. 
2.	Competitive benchmarking identifies 
information about: 
a. Products of competitors. 
b .. Processes of competitors. 
c.	Business results of 
competitors. 
3. Competitive benchmarking improves: 
a.	The position of the 
organization in the market. 
4. Competitive benchmarking focuses on: 
a. Direct competitors. 
5. Advantages of competitive benchmarking: 
a.	Obtains re1evant information re1ated 
to business results. 
b.	Compares practices and 
technologies with other 
organizations. 
6.	Disadvantages of competitive 
benchmarking: 
a.	It is difficult to obtain data. 
b.	It involves ethical aspects. 
c.	It creates antagonistic attitudes. 

Benchmarking Common Models 
l. Functional benchmarking analyzes: 
a. Products, services or processes of 
direct competitors. 
2. Objective offunctional benchmarking: 
a: To identify the best practices of 
organizations in specific areas. 
3.	Functional benchmarking requires an 
open mind from managers. 
4. Advantages of functional benchmarking: 
a.	High potential for discovering 
innovative practices. 
b.	Opportunity to transfer technology 
and practices quickly. 
c.	Development of professional 
networks. 
d.	Access to relevant databases. 
e.	Stimulating results. 
5.	Disadvantages of functional 
benchmarking: 
a.	Difficulty to transfer practices into 
a different environment. 
b.	Difficulty to transfer some 
information. 
c.	Time-consuming.