The Executive of a Certain Company States That the Firm

question 43

Multiple Choice

The executive of a certain company states that the firm should adopt the benchmark practices only of other firms in the same industry,as business conditions in other industries are significantly different.Which of the following is the underlying assumption in his argument?

• A) The argument assumes that business practices are nontransferable across industries.
• B) The argument assumes that firms cannot find unique and significantly better ways of doing things by looking outside their competitor set.
• C) The argument suggests that noncompetitors face different business conditions that make appropriate comparisons difficult.
• D) The argument is based on the assumption that benchmarking is an ineffective tool for investigating best practices of other firms.

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Definitions:

Qualitative Forecasting

A method of prediction that uses non-numerical data, such as expert opinions or market trends, to make forecasts about future events or behavior.

Expert Planning

Strategic planning carried out by individuals with specialized knowledge and skills in a particular area.

Contingency Planning

Identifies alternative courses of action for use if and when circumstances change with time.

Tactical Plan

A short-term, detailed plan outlining how to achieve specific goals within a strategic framework, often focusing on immediate actions and resources.