Unit 7: Business Decision Making –
Complete Study & Revision Guide 2026
Boston Matrix - ANSWER ✔✨---Analyses company's products in terms of market share and growth
potential.
Star - ANSWER ✔✨---High growth, high market share but need heavy investment to maintain
growth
Cash cow - ANSWER ✔✨---Low growth products with a high market share, little need for
investment
Problem child - ANSWER ✔✨---Low market share products in high growth markets, have potential
but need high investment to grow market share at the expense of larger competitors
Dog - ANSWER ✔✨---Low growth, low market share, can't generate
Answeroff's matrix - ANSWER ✔✨---Analytical tool that helps managers to devise their product
and market growth strategies
Market penetration - ANSWER ✔✨---Growth in a market, potential to attract other customers
away from competitors
, Benefits of market penetration - ANSWER ✔✨---Limited risk, cost of implementation likely to be
low
Product development - ANSWER ✔✨---Adapt to appeal to different market segments, occurs when
the existing product becomes out of date and needs replacing to maintain market share
Benefits of product development - ANSWER ✔✨---Builds a product portforlio on the strength of a
brand, competes in segmented markets
Market development - ANSWER ✔✨---trying to increase sales by selling present products in new
markets
Benefits of market development - ANSWER ✔✨---Easier to enter with a strong reputation and
keeps the core function
Weakness of market development - ANSWER ✔✨---Customers could feel alienated
Diversification - ANSWER ✔✨---developing new products and selling them in new markets
Benefits of diversification - ANSWER ✔✨---Spreads risk over more than one industry, growth when
saturation occurs
Benefits of Answeroff's Matrix - ANSWER ✔✨---Helps understand growth strategy of the business,
exploits new markets
Weakness of Answeroff's matrix - ANSWER ✔✨---Doesn't take into account the actions of the
competitors, reactions of competition.
Data storage - ANSWER ✔✨---Storing information appropriately
ethical issues surround it
Complete Study & Revision Guide 2026
Boston Matrix - ANSWER ✔✨---Analyses company's products in terms of market share and growth
potential.
Star - ANSWER ✔✨---High growth, high market share but need heavy investment to maintain
growth
Cash cow - ANSWER ✔✨---Low growth products with a high market share, little need for
investment
Problem child - ANSWER ✔✨---Low market share products in high growth markets, have potential
but need high investment to grow market share at the expense of larger competitors
Dog - ANSWER ✔✨---Low growth, low market share, can't generate
Answeroff's matrix - ANSWER ✔✨---Analytical tool that helps managers to devise their product
and market growth strategies
Market penetration - ANSWER ✔✨---Growth in a market, potential to attract other customers
away from competitors
, Benefits of market penetration - ANSWER ✔✨---Limited risk, cost of implementation likely to be
low
Product development - ANSWER ✔✨---Adapt to appeal to different market segments, occurs when
the existing product becomes out of date and needs replacing to maintain market share
Benefits of product development - ANSWER ✔✨---Builds a product portforlio on the strength of a
brand, competes in segmented markets
Market development - ANSWER ✔✨---trying to increase sales by selling present products in new
markets
Benefits of market development - ANSWER ✔✨---Easier to enter with a strong reputation and
keeps the core function
Weakness of market development - ANSWER ✔✨---Customers could feel alienated
Diversification - ANSWER ✔✨---developing new products and selling them in new markets
Benefits of diversification - ANSWER ✔✨---Spreads risk over more than one industry, growth when
saturation occurs
Benefits of Answeroff's Matrix - ANSWER ✔✨---Helps understand growth strategy of the business,
exploits new markets
Weakness of Answeroff's matrix - ANSWER ✔✨---Doesn't take into account the actions of the
competitors, reactions of competition.
Data storage - ANSWER ✔✨---Storing information appropriately
ethical issues surround it
