What Does External Analysis, Conducted During the Process of Benchmarking

question 225

Multiple Choice

What does external analysis, conducted during the process of benchmarking, involve?

• A) establishing a baseline for comparison with industry leaders
• B) identifying business processes that need improvement
• C) identifying the strengths and weaknesses of the firm's internal processes
• D) gathering information about competing firms perceived as leading performers

---

Definitions:

Complementary Product

A product that adds value to another, typically unrelated product when used together.

Energy Drink

A type of beverage containing stimulant compounds, typically caffeine, designed to provide mental and physical stimulation.

Sales

The exchange of a commodity for money; the action of selling something.

Cannibalized

The phenomenon where a company's new product eats into the sales of its existing products, often unintentionally.