Benchmarking & Competitive Analysis Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Benchmarking & Competitive Analysis flashcards as text
What is 'reverse benchmarking'?
Answer: Analyzing why a formerly top-performing organization declined
Reverse benchmarking examines organizations that were once best-in-class but have since declined, extracting lessons about what not to do or what risks to avoid.
A key principle of the Balanced Scorecard when applied to competitive analysis is that it:
Answer: Links process performance metrics to strategic objectives across multiple perspectives
The Balanced Scorecard connects process-level metrics to strategic goals across financial, customer, internal process, and learning/growth perspectives.
When calculating a 'benchmark ratio,' what two elements are compared?
Answer: The organization's metric value vs. the best-in-class value for the same metric
A benchmark ratio expresses an organization's performance as a proportion of best-in-class, showing how much improvement headroom exists.
Which of the following is an example of 'functional benchmarking'?
Answer: A retailer studying a courier company's delivery scheduling process to improve its own
Functional benchmarking compares similar functions or processes across different industries, such as a retailer adopting logistics practices from a courier company.
In competitive analysis, 'voice of the competitor' (VOC-competitor) data is collected primarily to:
Answer: Understand what value propositions and strategies competitors are emphasizing in the market
VOC-competitor analysis captures competitor messaging, product positioning, and strategic intent to inform how your own processes and offerings should differentiate.
What is the purpose of establishing 'benchmarking codes of conduct' (such as those from APQC)?
Answer: To ensure ethical, legal, and mutually beneficial information exchange between benchmarking partners
Benchmarking codes of conduct (e.g., APQC's) govern the ethical exchange of information, protecting all parties and ensuring data is used appropriately.
Which statistical measure is most useful for understanding the spread of competitor performance around a benchmark median?
Answer: Standard deviation
Standard deviation quantifies how widely competitor performance values are dispersed around the median, indicating how tight or variable the competitive field is.