Boston Matrix and Blake Mouton

Question 1

Boston Matrix Model

Answer 1

The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands

Question 2

4 points of Boston Matrix

Answer 2

Dogs, Cash cows, question marks and stars

Question 3

What does it show

Answer 3

Market Share- does the product being sold have a high or low market share ?

Market Growth- are the numbers of potential customers in the market growing or not.

Question 4

Stars - Boston

Answer 4

They are high growth products competing in markets where they are strong compared with the competition.

Question 5

Cash Cows - Boston

Answer 5

They are low-growth products with a high growth markets.

• Mature, successful products.

Question 6

Question Marks - Boston

Answer 6

Products with low market share operating in high growth markets.

• Have potential, but may need substantial investment to grow market share.

Question 7

Dogs - Boston

Answer 7

Products that have a low market share in unattractive, low-growth markets.

Question 8

Criticisms of Boston Matrix

Answer 8

• Market Growth is an inadequate measure of a market’s attractiveness
• Market share is an adequate measure of a products ability to generate cash.
• Focus on market share and market growth ignores issues such as developing a sustainable competitive.

Question 9

Blake Mouton

Answer 9

5 Areas of management on the grid ranging from higher concern for people to higher concern for results.

1. Impoverished management, low concern for results and low concern for people.
2. Country Club management, High concern for people and low concern for results.
3. Team management, High concern for people and high concern for task
4. Middle of the road management, halfway for both concerns
5. Produce or Perish management, high concern for results and low concern for people