Benchmarking Involves

question 17

Multiple Choice

Benchmarking involves

• A)comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities.
• B)checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to the other firms it is in direct competition with.
• C)studying whether a company's resource strengths are more or less powerful than the resource strengths of rival companies.
• D)tracking the profit margin along with the value-creating activities.
• E)comparing the best practices in one industry against the best practices in another industry.

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Definitions:

Empirical Approach

A method of inquiry that relies on observation, experimentation, and evidence rather than theory alone.

Test Validation

The process of ensuring that a test accurately measures what it is intended to measure.

Content Validity

Refers to the extent to which a test measures all aspects of a given construct or domain of interest accurately.

Construct Validity

Construct validity refers to the extent to which a test or instrument measures the theoretical construct it is intended to measure.