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Benchmarking is a systematic procedure that measures a firm’s processes, services, and products against those of industry leaders.
Benchmarking focuses on setting quantitative goals for improvement.
Competitive benchmarking is based on comparisons with a direct industry competitor.
Functional benchmarking compares functional areas in the firm with those of outstanding firms in any industry.
Internal benchmarking involves using an internal unit with superior performance as the benchmark for other units.