Advanced management accounting Essay Example | Topics and Well Written Essays - 2500 words - 1

Advanced management accounting - Essay Example The process of benchmarking involves the search for the best practices and then comparing the performance with that followed in the organization and determining the future performance. The three underlying principles of the process are quality, customer satisfaction and improvement in action. (Kozak, 2004, p.5) The application of the process of Benchmarking is done to improve the overall productivity of the business. Through the process of Benchmarking it enables the organization to highlight their individual strength and weakness. The internal knowledge about a business is essential to bring about changes in performance level and through benchmarking the objective is achieved. As the process of Benchmarking involves a finding of the best practices used by organization, it also enables an overall analysis of the competitors. Thus the process of benchmarking enables organizations to stay ahead of the competitors in the same line of business (Moore, 2008, p.181). Four types of benchmar king are generally in use by the organizations. They are named as internal benchmarking, external benchmarking, competitive benchmarking and sector benchmarking. The scopes and objectives of the different heads of benchmarking are different in their nature. (Wober, 2002, p.3) Intel has been global leaders in the makers of computer chipsets over a decade. The business aims to improve the performance of the new generation of chipset in every release of their updated product. The popularity of Intel has been so vast that it has almost established a monopoly in the market of PC chipset producers. The company uses the process of benchmarking as one of the tools to improve the overall performance of the organization. Intel uses the help of PC platform performance bench marking process that helps in analyzing and measuring the performance of the PC’s build by them. The analyzing of the performance of their product helped them in Customer satisfaction to a large extent. The