Benchmarking - Essay

Words: 3141
Pages: 13

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…
The company also introduce an operating officer system which intended to strengthen the execution of business operations in both regional and local levels. These processes make management decisions much quicker and flexible which enables them to adapt changes in the industry better. In turn, the performance of each board is much more effective and organised as it eradicates any behaviour of unfairness and prejudice, ensuring the “Honda system was built on trust”. Overall, this attribute of the MCS supports their strategy of being unique in the global market in terms of performance and competition.
Along with their decentralised structure, they operate with traditional Japanese culture controls. They incorporate a working environment which friendly and helps communication between the top management and board of directors. The de-emphasis on hierarchical differences demonstrates that there is no special treatment for superior associates. Therefore each employee has the same opportunities to develop their potential as well as build their career with Honda. For instance, there are no separate offices for executive staff and are placed in open styled offices with round desks, as Honda believe it enhances cooperation between their associates. Ultimately, Honda’s atmosphere of open communication is a primary reason that every individual has the confidence to step forward and contribute. This can be seen where