Benchmarking for Bernard Lester
University of Phoenix
June 05, 2008
A possible first step in identifying potential solutions is to find the best practices of those who have faced and solved similar problems. Investment alternatives can produce different results. LEI, Inc., is faced with a decision to partner with their leading supplier of capacitors, Shang-wa, or risk losing 43 % of its revenue over a period of five years. Team B will present several benchmarking companies that are similar to LEI, Inc. and discuss the outcomes. Team B believes that the merger of LEI, Inc. and Shang-wa would resolve several issues for both companies and would prove to be very profitable for both companies.
Investment Alternative: Benchmarking for Bernard Lester
Most corporate growth occurs by internal expansion, which takes place when organizations existing departments grow through normal capital budgeting activities. However, the most dramatic examples of growth and often the largest increases in stock prices that result from mergers. Many reasons have been proposed by financial managers to account for frequent merger activity. The primary motivation behind a merger is that it provides an opportunity for both companies and increase the value of the combined enterprise.
One commonly used research tool available to organizations is benchmarking. The purpose of benchmarking is to identify the best practices within the industry and implementing those processes into the current business. Where does a person find it? Perhaps a business should model its solution on what the best among its competitors have done in a similar situation. This is called “competitive benchmarking”, and it reflects two problems, one obvious and one subtle. The obvious shortcoming is that competitors are not likely to share... [continues]
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