ABSTRACT: Managers in today's international companies are facing a complex competitive environment. Financial benchmarking is an essential component of competitor analysis, a task that increases in importance as markets expand. However, measuring different aspects of performance in the form of multiple ratios is difficult using today's tools. A state of the art survey of financial benchmarking methods in Finnish publicly noted companies found that few advanced, multiple‐ratio methods are currently used. The survey found support for the need for new, complexity‐reducing tools in financial benchmarking.
In this study, a model for financial benchmarking in the pulp and paper industry, created using the self‐organizing map (SOM), is evaluated by experts from industry. The survey found that the managers considered the model better than many of their own methods, especially in terms of format. In particular, the model was found to be useful in strategic decision‐making settings.
