One of Britain's largest children's hospital's working with Ferrari Racing is an example of __________.

The correct answer highlights the concept of external benchmarking, which involves comparing practices, processes, and performance metrics with those of other organizations outside of one's own. In this case, the collaboration between one of Britain's largest children's hospitals and Ferrari Racing serves as a prime example. By working with a high-performance organization like Ferrari, the hospital can learn from their operational excellence and apply those insights to improve its own services and processes in a healthcare context.

External benchmarking is particularly valuable because it provides organizations with fresh perspectives and innovative ideas that can be derived from industries that may have different challenges and solutions than their own. This form of benchmarking can lead to the adoption of best practices that have proven successful elsewhere, ultimately enhancing quality of care and efficiency in the hospital's operations.

The other terms, while relevant in different contexts, do not accurately describe this specific situation. Internal benchmarking focuses on comparisons within the same organization, best practice analysis involves exploring industry standards without necessarily engaging another organization, and process re-engineering refers to the radical redesign of business processes for drastic improvements. Thus, the collaboration exemplifies the principles of external benchmarking as the hospital looks outward to enhance its own practices.