Boston Matrix Edexcel 1.3

What are the two dimensions that are used to determine the position of a product or brand in the Boston Matrix?

• Sales & profits

• Market share & market growth

• Share price & market share

• Selling price & market demand

A benefit of using the Boston Matrix to make decisions is that it may help a business

• Save money on budgeting

• Get rid of employees who are not needed

• Launch products before they are ready

• Focus on products with the most potential

Which category in the Boston Matrix is for the least successful products?

• Cash Cows

• Stars

• Question Mark / Problem Child

• Dog

Which of these businesses is most likely to use the Boston Matrix

• Aldi

• Local window cleaner

• Unilever

• Sellotape

A key reason for a business to have a balanced portfolio of products is to

• Raise finance

• Recruit staff

• Spread risk

• Encourage innovation

A product in a fast-growing market significantly increases its market share. It looks like it is now a

• Cash Cow

• Question Mark / Problem child

• Star

• Dog

One limitation of the Boston Matrix is that:

• A cash cow will not be profitable

• High market share may not mean high profit

• Firms cannot invest in Dogs

• It is easy to measure market share

A product with a high share of a mature market would be classified as a

• Star

• Question mark / Problem child

• Dog

• Cash Cow

Products in which two categories of the Boston Matrix are most likely to generate positive cash flows?

• Cash cows and Dogs

• Question mark/Problem child and Stars

• Dogs and Stars

• Stars and Cash cows

The Boston Matrix is used to help a firm manage its

• Organisational structure

• Product portfolio

• Share price

• Cash flow