Cadez and Guilding (2008) Organization Essay Example | Topics and Well Written Essays - 1500 words

Cadez and Guilding (2008) Organization - Essay Example Costing a. Attribute Costing b. Life cycle Costing c. Quality Costing d. Target Costing e. Value Chain Costing 2. Planning, control, and performance measurement a. Benchmarking b. Integrated Performance Measurement 3. Strategic Decision Making a. Strategic Costing b. Strategic Pricing c. Brand Valuation 4. Competitor Accounting a. Competitor cost assessment b. Competitive position monitoring c. Competitor performance appraisal 5. Customer Accounting a. Customer Profitability Analysis b. Lifetime Customer Profitability Analysis c. Valuation of Customers as Assets In this paper the strategic management technique of Benchmarking has been presented and defined, along with its benefits for the organisation. Benchmarking and its Benefits for the Organisation: This is the process of comparing ones internal processes with the processes of a company in the same industry, to identify discrepancies. The aim of this activity is to identify the best ways of carrying out a process. When undertakin g this process a company can also analyse the business practices of firms in different industries, and find out what are the key processes in these industries, by doing this a firm can know which processes can be tailored to fit their business model and what are the most effective ways of performing these processes. There are numerous measures which can be assessed in this way, for instance financial parameters, management parameters etch. However the most focused business variables that are subjected to this tool are time, quality and cost (Zairi, 1998). Through the process of benchmarking a company can find out the potential a process carried out by it can achieve. For instance if a competitor is carrying out the same business processes and is achieving a larger output as compared to the company, than there exist some problem with the company’s internal processes. Since the productivity level that can be accomplished is not being accomplished, the company needs to take corr ective measures to raise its productivity (Cooper and Kleinschmidt, 1995). From a competitive point of view, if a company is competing for a order that needs order fulfilment in a lesser amount of time, than the order placing firm will check the production capacity of each of the competing firms. In case a company has remained oblivion to the production capacity of its competitor, who presumably is having a higher production capacity, it can fairly be inferred that the order placing entity will opt for the firm which has greater production capacity. Thus, ever company is obligated to explore the processes of its competitors and other firms in different industry so that it can continually upgrade its own internal processes (Vorhies and Morgan, 2005). After a company decides, which business process it wants to benchmark and how it is going to benchmark it, than it needs to analyse the leader firm in this process and specifically find out how they accomplished such proficiency (David,à ‚  1995). The practice of benchmarking is not an end in itself. It is a part of a bigger initiative, to undertaking business process re-engineering. This process redefines and reconfigures the standard operating procedures of the company’s department or process that is being benchmarked. By doing this the company is trying to neutralise the competitive or process advantage of its competitor firm