What is the purpose of benchmarking in BECO?

Benchmarking serves a critical role in Business Economics (BECO) by allowing organizations to measure their performance against best practices within the industry. This process involves identifying key performance indicators (KPIs) and comparing them to those of leading competitors to determine where improvements can be made. By conducting benchmarking, businesses can gain insights into effective strategies, operational efficiencies, and innovative practices, ultimately guiding them toward enhanced productivity and competitive advantage.

The process of benchmarking is not about creating new industry standards; rather, it's about understanding and learning from those who are already excelling in specific areas. It also does not eliminate the need for KPIs; instead, it complements them by providing a framework for performance assessment. Furthermore, while customer feedback is important in evaluating a company's offerings, benchmarking emphasizes a broader perspective that focuses on overall performance metrics rather than just customer satisfaction.