Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

Question

Business

Tyrese

22 October, 15:45

Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

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Answers (1)

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Dozer · Answer 1

Gilly Brothers is adopting the Competitive Benchmarking Procedure

Explanation:

Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies

Benchmarking in Business is a practice that compares performance metrics as well as business processes to the best practices attainable within an industry or from other companies.

The Competitive Benchmarking procedure adopted by the Gilly Brothers represents the process of comparing one's product, service, process or method directly with competitor's similar products, service, process or method in order to establish practices that can be best adapted to improve one's outcome.

Other types of Benchmarking include:

1. Internal Benchmarking - comparing with similar processes within the organisation

2. Functional Benchmarking - comparing with identical processes outside one's immediate industry

3. Generic Benchmarking - comparing broad procedures and processes that are applicable across a broad range of industries.