- 20 Marks
MA – L2 – Q10 – Performance analysis
Explain benchmarking and its benefits, describe its implementation in a purchasing department, and discuss potential implementation challenges.
Question
AMINU COMPANY
AMINU Company manufactures and distributes generic paper-based products and currently has an annual turnover of GH¢10 million.
At present, the management of AMINU Company are uncertain whether the purchasing department is maximising its potential in terms of purchasing efficiency and effectiveness.
The management are currently considering the introduction of a system of benchmarking to measure the performance of the purchasing department.
Required:
(a) Explain the term ‘benchmarking’ and briefly discuss the potential benefits that can be obtained as a result of undertaking a successful programme of benchmarking.
(b) Describe how a system of benchmarking could be introduced to measure the performance of the purchasing department.
(c) Discuss the problems that the management of AMINU Company might encounter in implementing a system of benchmarking and recommend how such problems should be successfully addressed.
Find Related Questions by Tags, levels, etc.
