Evaluate the usefulness of the Boston Matrix to a business.

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. • Knowledge 2, Application 2, Analysis 2, Evaluation 2
2. • Award up to 2 marks for knowledge of the Boston Matrix (e.g. defines it as a portfolio analysis tool, identifies its quadrants - cash cow, star, dog, problem child/question mark). (K)
3. • Award up to 2 marks for application to a business (e.g. identifies that a business with multiple products can use it to categorise its product portfolio, provides an example of a product type fitting a quadrant). (App)
4. • Award up to 2 marks for analysis of its usefulness (e.g. helps strategic decision making on product development/withdrawal, resource allocation, investment strategies; highlights need for a balanced portfolio, identifies products that generate cash for others). (An)
5. • Award up to 2 marks for evaluation of its usefulness (e.g. simplifies complex reality, only considers market share/growth, doesn't consider external factors/competition/synergies, subjective nature, dynamic market conditions make it quickly outdated, only useful for diversified businesses). (Ev)
6. Maximum of 4 marks if no evaluation.