Benchmarking

Is defined by CIMA as The Establishment, by means of data gathering of targets and comparators, through whose economic consumption relative levels of capital punishment (and below performance) can be identified. CIMA, 2008 This definition explains in my mind that benchmarking is the comparison of one/ several(prenominal) companys comparison of relative factors to anothers. Therefore seeing how a companys best use differs to your own. There are several types of benchmarking that a company may use Internal, Functional, competitory and Strategic.A company may use internal benchmarking to compare different processes deep down the same departments. If they use functional benchmarking whence they are mainly looking their departments and which runs cave in regardless of their different outputs. Competitive benchmarking is discipline ga in that respectd about direct competitors and in the wide run strategic is a longer condition benchmark technique. This is used for companies looking for organisational change.The main advantage for benchmarking is to set the foundation for performance improvement to help better competitors Nayab, 2010 and boilersuit be the best company in the Market place. On the other gain a disadvantage is how readily visible(prenominal) is all the information you require to benchmark? Business Process Re-engineering Is defined by Drury as examining business processes and making square(p) changes to how the company operates. Drury C, 2008 BPR is a major creature used by business because they sine qua non gains in performance and quality, and they need to price reductions to strive for profit maximisation.When re-engineering processes they look at what has been done and try to improve it. A typical example may be Building a car by hand takes a considerable long time, however if they changed the process to the car be built by a robot, whence they could increase performance and quality. However there are many negatives to usage o f BPR. It has an obscure result because it is an all or postal code technique (high risk). In addition it is verbalize that