Evaluate the usefulness of the Boston Matrix as a decision making tool within an organisation. (20 marks)


	Evaluate the usefulness of the Boston Matrix as a decision making tool within an organisation. (20 marks)
	Advantages Can allow managers within the firm to see the balance of products within each quadrant so that an overall balance can be maintained Can help with decisions about introducing new products or, as in this case, whether to invest heavily Can assist managers in making decisions about which products to withdraw from the market Managers can track how competitors are doing in the ladder market against the firm Allows managers to see the future cash flow implications of the firm’s product portfolio Visual technique makes understanding easier	Disadvantages Requires considerable amount of resources and expertise within the firm to carry out analysis Difficult to get the timing of decisions right in practice Ignores qualitative data such as the demotivating effect on employees of having to undertake further training Can be difficult to place each product on the grid accurately Does not give managers in the firm any guidance about what a satisfactory payback cut off point should be
	Evaluation

Can allow managers within the firm to see the balance of products within each quadrant so that an overall balance can be maintained
Can help with decisions about introducing new products or, as in this case, whether to invest heavily
Can assist managers in making decisions about which products to withdraw from the market
Managers can track how competitors are doing in the ladder market against the firm
Allows managers to see the future cash flow implications of the firm’s product portfolio
Visual technique makes understanding easier

Requires considerable amount of resources and expertise within the firm to carry out analysis
Difficult to get the timing of decisions right in practice
Ignores qualitative data such as the demotivating effect on employees of having to undertake further training
Can be difficult to place each product on the grid accurately
Does not give managers in the firm any guidance about what a satisfactory payback cut off point should be

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