Explain : Process of Benchmarking

Benchmarking is not an immediate solution to a problem. Instead, it is a step by step treatment of the problem area. These steps are explained in detail below:

Planning: The planning phase determines the need for benchmarking and the area which requires it. The competitors and means to collect the relevant data are also decided at this particular stage.

Analysis: The company then analyzes the data so gathered to find out the strengths of the competitors, list out its weaknesses and ways of improvement.

Integration: At this phase, the analysis is reported to the top management, and after their approval, the desired action plan with a well-defined strategy, is developed.

Action: Now, the management has a workable plan; at this stage, the employees execute the benchmarking plan.

Maturity: The final stage is maturity; it is at this phase, where the result of using benchmarking to improve the business operations can be observed. A successful application of benchmarking will lead to the attainment of market leadership.

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