Are you looking for an explanation of benchmarking analysis? Read this article to learn the benchmarking analysis definition, importance, and types. You’ll also find a benchmarking analysis example of Coca-Cola and Nike.
🔝 Top-10 Examples of Benchmarking Analysis
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- Emirates Nuclear Energy Corporation: Role of Training
🔤 Benchmarking Data Analysis: Key Definitions
One can’t explore benchmarking analysis without defining its essential aspects and types. That’s why we’ve listed and explained the terms you should learn before proceeding to the study itself.
What Is Benchmarking?
Benchmarking allows you to compare a company to other businesses or against industry standards. For example, a firm can assess its performance, products, or services compared to its rivals. This analysis can also be used to evaluate different processes within the organization side-by-side. The practice helps businesses maintain and increase cost efficiency, product quality, and customer satisfaction.
What Is Competitor Benchmarking?
Competitor benchmarking evaluates a business against one or several rivals. To gain precise data, analysts use various metrics, such as the website’s performance and social media metrics. The process involves looking at practices and procedures that put competitors above a particular company. With this analysis, an organization can see what it does right or struggles with and use this data to improve its operations.
What Is Financial Benchmarking?
Financial benchmarking analyzes the company’s financial performance and compares it with other organizations to see how competitive, productive, and efficient it is. The results are used to make the necessary improvements to increase the firm’s efficiency and cost-effectiveness.
👩🏫 Benchmarking Analysis Explained
As you’ve got familiar with the terms, let’s talk about the central concept of this article. Benchmarking analysis is a type of market research companies use to compare their performance to the best industry practices. This process uses objective data to show what best performance a company can achieve and how it can do so.
Benchmarking analysis can be internal and external. The former compares different processes within a business, while the latter evaluates an organization’s performance against other companies.
Why Is Benchmarking Important?
There are several reasons why this analysis is essential:
- It makes a company more efficient by regularly identifying areas for improvement.
- It helps set clear business objectives by determining what makes rivals successful and, thus, providing ideas for the company’s performance improvement.
- It opens new opportunities for growth and success since it allows companies to explore the industry’s best practices.
- It increases sales volume by pinpointing the shortcomings in the company’s sales performance, such as understaffing or a lack of valuable partnerships.
- It improves employee motivation since regular tests encourage employees to contribute to the company’s success.
- It provides a deeper understanding of the competition by giving companies comprehensive information about their rivals.
- It helps make better products by analyzing the performance metrics of competitors’ products, such as customer satisfaction or durability, and suggesting areas for improvement.
💵 Types of Benchmarking in Finance
There are several types of benchmarking analysis used to evaluate company finances.
|Internal benchmarking||Analysts use this method to assess several similar procedures within the business. Internal benchmarking is one of the simplest and most cost-effective strategies. It is usually performed using employee surveys.|
|Competitive benchmarking||Under this method, a company compares its products, services, and processes to rivals’ ones. Analysts can assess various metrics, from revenues and return warranties to customer service quality and employee benefit programs.|
|Functional benchmarking||This approach compares the company’s functional areas, such as marketing or finances, with similar ones in organizations outside its industry. The method provides data on best practices across different sectors.|
|Generic benchmarking||The method compares core business processes, such as budgeting or HR planning, across different industries. It gives companies a new perspective on how to run their business.|
📊 Benchmarking Analysis Examples
We prepared several benchmarking analysis examples to help you understand it better. Check them out below.
Benchmarking Analysis: Coca-Cola
Coca-Cola is one of the world’s leading food and beverage producers. It shows excellent performance across many areas, such as governance and strategy or social inclusion.
This corporation may improve its level of stakeholder engagement and sustainable development. Moreover, it still has room to grow in promoting healthy nutrition and achieving sustainable food production. The corporation may benefit from reducing food waste and CO2 emissions.
Competitor Benchmarking Analysis: Nike
Nike is one of the biggest apparel, footwear, and equipment producers. Its competitors are high-end brands like Adidas, Reebok, Puma, Under Armour, and New Balance. The corporation’s advantage includes its brand image, global reach, and customer focus.
Nike’s outstanding results are mainly attributed to its celebrity endorsements and aggressive marketing campaigns. The company also deeply understands the needs of its consumers. As a result, the corporation stays afloat even in the highly competitive market.
Like many business analysis tools, benchmarking analysis provides data vital for company growth. It reveals the best business and industry practices and provides insights into how a company can improve its performance.
📝 Benchmarking Analysis Research Paper Examples
- Meeras Company's Marketing AnalysisBusiness essay sample: The era of globalization creates many opportunities and threats to the companies that operate worldwide, and Meeras is one of them. The primary goal of this paper is to conduct marketing analysis.
- Infinity Contracting Company's Process ImprovementBusiness essay sample: Infinity Contracting Company Ltd. is a small civil contracting organization that has been operating since 1972 in the UAE.
- Walmart Company's Transportation and Supply Chain ManagementBusiness essay sample: The Wal-Mart company’s great success is highly attributed to its efficient supply chain management system and continuous innovation and adoption of technology.
- Wal-Mart Stores' Transportation and Supply Chain ManagementBusiness essay sample: Transportation management plays a significant role in Wal-Mart. The chain store is unique and has remained focused on the retail industry despite its massive growth over the years.
- An Investigation of How CRM Can Assist Service Companies to Meet Their Business ObjectivesBusiness essay sample: This dissertation investigates how the exploitation of a Customer Relationship Management (CRM) can assist a service company to meet its business objectives.
- Relationship Between TQM, Benchmarking, and Business Process RedesignBusiness essay sample: Business Process Redesign is defined as the study and design of workflows and developments within and between organizations.
- Business Value Management and Theories of the FirmBusiness essay sample: The management of a business entity should be able to make decisions on whether the current business portfolio is worth it.
- Just-in-Time and Manufacturing Resource PlanningBusiness essay sample: Two inventory systems, just-in-time and manufacturing resource planning, would be analyzed via this research paper.
- Company A's Inventory SystemsBusiness essay sample: The inefficiency of Company A's inventory systems has dealt a major blow to turnovers and overall firm efficiency. The Company has observed that goods have been poorly stored and disposed of.
- Dell Corporation: Strategy in ActionBusiness essay sample: The events that led to Dell Corporation’s success can be considered as an example of strategy in action. The company managed to overcome near-bankruptcy and evolved into a highly noted firm.
- Service Procurement And ProvisionBusiness essay sample: The report is going to focus on a strategic review of Benenden hospital, which is one of the most popular medical centers in UK.
- Performance Measurement and Management in BusinessBusiness essay sample: Performance measurement is vital in all organizations because the organizations need to verify the validity of the selection methods.
- The Current Economic Situation in the USABusiness essay sample: The current economic situation in the US was occasioned by the global financial crisis, which led to the collapse of several corporations and an upsurge in unemployment rates.
- Classification of Benchmarking Activity and ProcedureBusiness essay sample: Benchmarking has increasingly been utilized over the past century as a way through which organizations analyze its performance by comparing against other firms in the same industry.
- Impact of E- Commerce on B2B OrganizationsBusiness essay sample: This paper seeks to identify E-commerce and its Impact on B2B Organizations Supply Chain and identify the way in which the logistics of business to business e-commerce can be managed.
- Foundation Schools' Program Management PlanBusiness essay sample: The case of Foundation Schools illustrates how a problem of inefficient program management can be identified and solved.
- Remington Peckinpaw Davis: Improper Project ManagementBusiness essay sample: The case of Remington Peckinpaw Davis is an example of improper project management and issues it might cause to the company.
- Key Approaches of the TQM by the Arab Police ForceBusiness essay sample: The paper aims to identify the key approaches of the TQM by the Arab Police Force and analyze the TQM strategy for defining the pros and cons of the strategy applied.
- Aichi Corporation Company AnalysisBusiness essay sample: Aichi has managed to set itself apart from the competitors, following its unique business model and product design which uses vertically integrated manufacturing.
- Coca-Cola Company: Difficulties of Global OrganizationBusiness essay sample: Coca-Cola being a global organization has confronted numerous difficulties. It has handled the issues productively and manages to uphold its brand image.
- Process Improvement Project of Company PaneraBusiness essay sample: Review the supply chain processes and identify a process that can be improved in your sphere of influence in company Panera.
- Wells Fargo & Company's Management AnalysisBusiness essay sample: Wells Fargo & Company is one of the biggest providers of financial services in the world. It continuously works on improving the services that they provide to the clients.
- Amazon and eBay Firms' Customer Perceived ValueBusiness essay sample: The paper discusses the customer perceived value of Amazon and eBay, and further explains a new proposed value for the markets.
- Just in Time Process ImprovementsBusiness essay sample: Managers should apply their competencies to implement continuous improvement strategies to improve organizational processes, services, or products.
- St. Mary’s Organization’s Financial and Operating IndicatorsBusiness essay sample: While the industry performs to provide a 14.88% return to the owners for the year 1993, St. Mary’s was able to secure only 7.03% which is much low.
🏆 Best Benchmarking Analysis Research Titles
- Financial Analysis Based on Benchmarking TechniqueBusiness essay sample: The analysis tendency based on benchmarking technique is closely linked with the values of quantitative and qualitative analysis.
- Budgeting Analysis QuestionsBusiness essay sample: A budget is a short-term plan of action articulated in quantitative terms for a given future period. A balanced scorecard is a tool used in measuring and performance evaluation.
- Operations Management Process: TK MaxxBusiness essay sample: The purpose of this article is to consider the importance of the operations management process using the example of the TK Maxx retail store chain.
- Hospital's Budget Management AnalysisBusiness essay sample: A budget is a plan in numerical terms of the cost of resources to be incurred in a certain activity or during a certain period.
- Advanced Management Accounting in HospitalsBusiness essay sample: The aim of the paper is to analyze cost benchmarking in hospitals, how HRG is used to benchmark and the use of Payment by Results to allocate resources.
- Abu Dhabi Council in Relation to Volvo Ocean RaceBusiness essay sample: This report seeks to analyze some components of the Abu Dhabi Council in relation to the Volvo Ocean Race. It seeks to determine the factors related to the investments.
- Sharjah Cement and Industrial Development Company: The Ratio AnalysisBusiness essay sample: This report covers the ratio analysis of Sharjah Cement and Industrial Development Company for the last three financial years.
- Financial Projections, the Firm’s Growth StrategyBusiness essay sample: The firm’s growth strategy will also entail the incorporation of the concept of internationalization. This will be possible since the firm will be dealing with digital products.
- Etisalat Company: Financial AnalysisBusiness essay sample: This report presents the information related to the operations, customers, suppliers, and competitors of the company and also analyzes the financial information.
- Microsoft Corporation's Financial ManagementBusiness essay sample: Microsoft Corporation is a technology syndicate that manufacturers. It progresses and authorizes computer software and other application.
- 5HRF - Managing and Coordinating the Human Resources FunctionBusiness essay sample: This report will consider some of the key methods of implementing and improving the HR function within an organization.
- Incentive Pay in Chinese Small Manufacturing EnterprisesBusiness essay sample: This paper provides the design of a program that structures incentive pay and links it to a China manufacturing Small and Medium Enterprises organizational strategies.
- The Coca-Cola Company's Operations ManagementBusiness essay sample: The report aims to demonstrate the existing operation management processes promoted by the Coca-Cola corporation and present relevant tools to achieve organizational objectives.
- The Dubai Metro Upgrade ProjectBusiness essay sample: The concept of project management has gained massive popularity over the last two decades both in the private and public sectors.
- Quality Management Programs in HotelsBusiness essay sample: This paper is a study of the effectiveness of quality management programs concerning the front desk of hotels. They are not very successful.
- Costco Wholesale Corporation's Operations Management EvaluationBusiness essay sample: Evaluation of the operations management of Costco Wholesale Corporation demonstrated the adequacy of currently applied solutions to the identified challenges by the company.
- Management Accounting System: Origin, Role, and PrinciplesBusiness essay sample: The systems of administration accounting systems or accounting programs for internal control provide the administration with the data that is necessary for the decision-making.
- Associated Brands Industries Limited (ABIL) Charles ChocolatesBusiness essay sample: Strategy for the Associated Brands Industries Limited (ABIL) Charles Chocolates Company of entering the vegan chocolate and chocolate milk markets in Trinidad and Tobago.
- Analysis of Coastal Medical Center (CMC): Baldrige Criteria and SWOT AnalysisBusiness essay sample: Coastal Medical Center (CMC) is a regional referral hospital that specializes in the provision of a full range of services, this study audits CMC based on the Baldrige criteria.
- Project Life Cycle Principles in BusinessBusiness essay sample: Contemporary organizations attempt to achieve their overarching business objectives by matching those to specific projects.
- Management Planning Tools and Responding to Financial ProblemsBusiness essay sample: Management is different from financial accounting in that their roles, processes, uses, and purposes are other. Yet, they play significant roles in an organization.
- Cost-Benefit Analysis of United HealthcareBusiness essay sample: United Healthcare is profitable and successful in its field. There are frequent complaints about the unsatisfactory quality of services and products.