Final answer:
Benchmarking is the process in which a company compares its practices against those of competitors to identify areas for improvement.
Step-by-step explanation:
The process by which an organization compares its own practices against those of the competition is called benchmarking. This process involves looking at how other businesses perform particular functions and processes with the aim to improve on these within one's own company. Benchmarking can help organizations understand how they compare in terms of quality, time, cost, and customer satisfaction.
While ethnography and ethnocentrism are terms typically used in social sciences and cultural studies, they refer to different concepts. Ethnography is a qualitative research design aimed at exploring cultural phenomena, and ethnocentrism is the act of evaluating another culture according to the standards of one's own. These are different from benchmarking which is a business practice.
When companies engage in benchmarking, they are not only comparing practices but also setting goals and strategies for improvement. It is a proactive approach for a business to gain a competitive edge.