GMAT Critical Reasoning
One way to judge the performance of a company is to compare it with other companies. This technique, commonly called "benchmarking," permits the manager of a company to discover better industrial practices and can provide a justification for the adoption of good practices.
Any of the following, if true, is a valid reason for benchmarking the performance of a company against companies with which it is not in competition rather than against competitors EXCEPT:
- A Comparisons with competitors are most likely to focus on practices that the manager making the comparisons already employs.
- B Getting "inside" information about the unique practices of competitors is particularly difficult.
- C Since companies that compete with each other are likely to have comparable levels of efficiency, only benchmarking against noncompetitors is likely to reveal practices that would aid in beating competitors.
- D Managers are generally more receptive to new ideas that they find outside their own industry.
- E Much of the success of good companies is due to their adoption of practices that take advantage of the special circumstances of their products or markets.
Correct Answer: E