Benchmarking in Global Business

Benchmarking in Global Business




Benchmarking in Global Business









































Abstract

Companies planning to expand their business outside of the domestic market will need a global strategic plan. The plan not only helps the company know what to expect in the new market but the learn from the competition as well. Benchmarking helps the company evaluate the top competition and imitate the success of that company in that market. It also provides data on the government and culture of the targeted region. Benchmarking is an important tool that many companies have successfully used worldwide to ensure their company’s success.
































Benchmarking in Global Business
Having a global strategy is essential for any company planning to expand outside their home country. The global market is entirely different from the domestic market and every country and region is different from one another. A different strategy is needed for each of those regions. In order for the company to be successful overseas, research is required and a part of the research is benchmarking. Benchmarking evaluates the top competition in the targeted market and finds out methods for the company to imitate that success in that market. It also measures failures so that the company will know what to avoid.
According to a 2003 survey quoted in Financial Executive, out of dozens of management tools used by executives worldwide, benchmarking received the 2nd highest usage score of 84 percent with most executives being highly satisfied with the benchmarking data.(Koch, 2014). With this type of statistic, it’s no surprise that companies worldwide have depended on this data and there are many reasons for it. Benchmarking is not just evaluating the best competitions in the targeted country and recognizing their strength and weaknesses and using that data to imitate and improve ones own...

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