Running head: BENCHMARKING MANAGEMENT TECHNIQUE
Benchmarking Management Technique
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BENCHMARKING MANAGEMENT TECHNIQUE 2
Organization management involves organizing people within an organization to achieve
set goals. Some of the various types of management techniques that organizations can adopt to
excel in their industry are benchmarking and value chain management (Blocher, Stout, Juras, &
Cokins, 2016). Management techniques such as benchmarking and value chain management,
when implemented effectively and strategically, can help organizations utilize their full potential
and maximize profits, as well as compete favorably in the market (Blocher, Stout, Juras, &
Cokins, 2016). For example, in the transport industry, organizations need to benchmark from the
leading organizations to improve in their service delivery, hence maximizing profits. Therefore,
this paper discusses benchmarking as a contemporary management technique, and its effect in
helping Bolt (formerly Txify) achieve its primary success factors.
Benchmarking refers to a management technique through which an organization
identifies its primary success factors by closely studying and implementing other successful
organizations' primary success factors in the industry (Erdil & Erbıyık, 2019). Bolt company is a
European ridesharing company and was launched in 2013. The company has grown ever since it
is now found in more than 34 countries and over 150 cities in America, Africa, and Europe
("Bolt | Fast and affordable rides," n.d.). Although the company has sustained itself in the
industry, it is yet to make maximum profits. Other competing firms such as Uber have nominated
the market, preventing Bolt from making maximum profits. To improve its performance, the
company needs to benchmark with other companies like Uber, Lyft, and Didi.
Benchmarking would help Bolt identify areas to improve on. Besides, it would allow the
company to determine the performance gaps to identify the places it can improve. According to
Erdil, and Erbıyık (2019), benchmarking helps organizations obtain an independent view on to
well they perform compared to other companies. Similarly, it would allow Bolt Company to
BENCHMARKING MANAGEMENT TECHNIQUE 3
acknowledge its strengths in the market. On the other hand, it would enable them to determine its
weakness, therefore, developing strategies to overcome them. During benchmarking, the
company would compare its set goals to that of the competitors, allowing it to adjust goals and
set better performance expectations (Erdil & Erbıyık, 2019). Also, benchmarking would help
change the mindset of employees of the company and develop a culture of successive
improvement.
In conclusion, benchmarking would help turnaround the business practices of Bolt.
However, to benchmark successfully, the company needs to prepare thoroughly and have set
goals. If not so, the company might lose it all trying to adopt to policies and strategies that cannot
work with them. Also, they need to be keen to maintain their culture and should only adjust if the
change would be positive (Kumar, & Chandra, 2001). A committee needs to be set to help
rollout the experiences. Finally, the company needs to develop excellent communication
channels when implementing the changes.
BENCHMARKING MANAGEMENT TECHNIQUE 4
References
Blocher,CE.CJ., Stout,CD.CE., Juras,CP.CE., & Cokins,CG. (2016).CCost management: A strategic
EmphasisC(7thCed.). Boston, MA: McGraw-Hill.
Bolt | Fast and affordable rides. (n.d.). Retrieved from https://bolt.eu/en-ke/
Erdil,CA., & Erbıyık,CH. (2019). The importance of benchmarking for the management of the
firm: Evaluating the relation between total quality management and
benchmarking.CProcedia Computer Science,C158, 705-714.
doi:10.1016/j.procs.2019.09.106
Kumar, S., & Chandra, C. (2001). Enhancing the effectiveness of benchmarking in
manufacturing organizations.CIndustrial Management & Data Systems,C101(2), 80-89.
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