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Abstract

This is the age of the globalization and every firm wants to compete successfully in the market
and wants to increase their market share. Benchmarking process provides great platform to the
firms both at domestic as well as global level. Benchmarking is a continuous process of
improvement for the companies to ensure the best performance level. Foreign investment is a
significant contributor for any countrys growth and development in the long run. It boost the
countrys economy and other economic factors and has various benefits for the country.

Keywords: Benchmarking, Foreign Investment









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Global Dimensions
Solution No.1
Benchmarking

It is the procedure of comparing business performance of the other business which is
performing tremendously well in the industry. It is a best tool to raise the performance standard
and quality to compete in the market. As far as dimensions in this process are concerned, it
includes cost, time and quality elements to consider. The firm, which decides to practice
benchmarking practices, recognizes the top firm in the industry to compare themselves in order
to increase the efficiency. This process will set the direction and long term strategy for the
company and provides a great platform to the entire organization. The objective of the process is
to measure the actual performance and how it will increase in the future (Fifer, 1989).

Benchmarking is also referred as Best Practice Benchmarking or Process
Benchmarking. This process is basically comes under the area of management in particularly
strategic management, in which firms assess several features of the organizational methods and
processes against companies having best practices in the industry. Successful implementation of
benchmarking best practices facilitates the organization and contributes significantly in order to
develop and future plans and strategies to strengthen the performance standards. It is basically a
continuous process of improvement and may be adopted time from a time when needed by an
organization. Benchmarking also makes the firm cost effective, if implemented efficiently
(Bogan, 1994).

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Advantages and Practices of Benchmarking
There are various advantages of benchmarking for any firm who wants to gain
competitive advantage in the industry. It is up to the firm how efficiently they identify the firm to
match the standards. If they identify the right firm and industry for benchmarking, then there is
no doubt it will increase the performance standards of it. Several companies adopt benchmarking
practices to achieve success and overcome the shortcomings. To take the full advantage from it,
there should be a proper identification of need and problem, industry top competitors should also
be recognized efficiently. Some of the benefits of the benchmarking process are as follows:
Decreases Labor Cost
Enhance Product Quality
Strengthen sales and revenue
Performance Improvement
Bring Change
Decreases Labor Cost
One of the advantages of benchmarking process is a decrease in the labor cost. For
instance, a manufacturing company may identify the cheap equipment and material for the
manufacturing process by analyzing top competitor in the industry.
Enhance Product Quality
When the firms compete from the top competitor in the industry, it always increases the
product quality for the firm. Research and development (R&D) department of the firm usually
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analyze the best competitors product by purchasing it. Afterwards, they adopt the quality
standards in their products to strengthen the customer base.
Strengthen sales and revenue
Benchmarking process always contributes in sales and revenue of an organization.
Because of the process, firms better understand the needs and demands of the customers and it
causes significant increase in sales and revenue.
Performance Improvement
The performance of all the departments improves when firm implements benchmarking
practices. This may be achieved by applying internal benchmarking, the best department of the
firm performs tremendously well compared with other departments within the organization.
Benchmarking tells which departments are not following the practices of benchmarking (Camp,
1989).
Bring Change

Process of benchmarking bring changes in the organization, because the company is
comparing their standards with the top firms in the industry. It also provides new ideas and ways
to the company for strategy implementation. It also increases the knowledge and promote
learning within the organization.


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Solution No.2

Businessmen always intend to achieve a significant amount of profit because he invests a
lot in the business. While doing a business, whether at domestic level or global, company needs
an investor to expand the business. There are various ways for the company to find the right
investor in the business. Government policies and procedures are also important factors to
consider for both the company and the investor. When the government encourages local
investors to invest in the businesses, they usually enjoy benefits in the long run. Companies are
always willing to earn more profit, but when the companies are restricted by the governments,
companies have to design their policies accordingly. When the local investors do not provide the
sufficient amount of funding and investment that needed for the company, quality standards of
the firms badly affected from it Some of the suggestions for the companies to attract the
government to promote foreign investment are:
Foreign investor's contribution to GDP
Strengthen the countrys labor force
Industrialization in the Country
Increases the Competition
Foreign Investor Contribution to GDP
When the government promotes or encourages the local investor it is sometimes difficult
for the firms to do the business. Companies have to ensure the government that the foreign
investment directly contributes in the countrys GDP significantly. It will create a positive
impact on the countrys growth and development in the long run (Tomas, 2011).

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Strengthen the labor force
Companies have also ensured the government that foreign investment will be beneficial
for the company and reduces the unemployment. When there is a decrease in unemployment, it
also has a positive effect on the countrys growth. When the firms bring more workforce in the
organization, it is always good for the government in the long run (Slaughter, 2012).
Industrialization in the Country
There will be more industrialization in the country if there is more foreign investment in
the country. Governments should promote the foreign investor more as compared to the local
investor because it will positively contribute to the countrys development and growth.
Increases the Competition
Foreign investment also increases the competition among the market players in the
industry. When there will more industries, in the country, it will make the competition stronger
among the existing players. All the firms in the industry want to achieve a sufficient amount of
profit and design their policies accordingly. It will have a positive effect to the country because it
will create more jobs in the industry and reduces the unemployment which is always a good for
any country.








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References
Fifer, R. M. (1989). Cost benchmarking functions in the value chain. Strategy & Leadership, 17
(3), 18-19.
Bogan, C. E., & English, M. J. (1994)., Best Practices, LLC Benchmarking for best practices:
Winning through innovative adaptation.] New York, NY: McGraw-Hill.
Camp, R. (1989). The search for industry best practices that lead to superior performance.
Productivity Press.
Tomas Havranek & Zuzana Irsova (30 April 2011). "Which Foreigners are Worth Wooing? A
Meta-Analysis of Vertical Spillovers from FDI". Ideas.repec.org. Retrieved 17 September
2012.
Slaughter and May (2012). "Legal regimes governing Foreign Direct Investment (FDI) in host
countries".









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