Benchmarking - Essay

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Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. It is recognised to play a major role in developing and monitoring the business strategy, and therefore achieving a competitive advantage in the industry. However Andrew Campbell has suggested there is a problem in benchmarking as it can be valuable but can also mislead and distract; therefore “it can prevent managers from focusing on what is unique to their situation”. As a result he suggests that the designed planning processes “fail to add value” and consequently companies should spend time on the “needs of their businesses and skills of their corporate managers”. The selected company…show more content…
Also Honda’s management policies such as always being ambitious, developing fresh ideas, efficiently using their time, enjoying work and encouraging open communication; help implement the crafted philosophy and its beliefs. The strategies of Honda spread a strategic spirit throughout the company; therefore they are pursuing their 2010 Vision: “Striving to be a company society wants to exist through creating new value, globalization, and commitment for the future”. However, in order to adopt a successful strategy, it is suggested a that each organisation has to design and develop a MCS that best fit the specific circumstances in which the organisation finds itself. Over the years, there have been a number of studies relating to the relationship between strategy and MCS. MCS are the processes by which managers ensure that actions or activities are taken to influence the behaviour of managers and employees to behave in such a way that the organisational objectives are achieved. Furthermore, by analysing Honda’s philosophy we come to a conclusion that they can be described as a “Prospector”, a “Differentiation Firm” and “Entrepreneurial”; according to the empirical research studies. Prospectors are likely to have “flexible structures and processes” as they will help them adapt to environmental change as well as encourage innovation. This can be seen within Honda, as they decentralise authority to
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