Priority matrix

1. Priority Matrix (Eisenhower Method / ABC Analysis)

Definition

The Priority Matrix is a time management tool used to prioritize tasks based on urgency and importance. It divides tasks into four quadrants to help decide which ones need immediate attention and which should be postponed, delegated, or eliminated.

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Steps in Conducting the Analysis

1. List All Activities

   • Write down every task you need to do (big or small).

2. Assign Importance (Scale 1–5)

   • Rate how much each task contributes to your goals.

3. Evaluate Urgency

   • Decide how soon each task requires attention.

4. Plot on the Matrix

   • Place each task into one of the four quadrants:

     • Quadrant 1: Important & Urgent → Do immediately.

     • Quadrant 2: Important & Not Urgent → Plan & schedule.

     • Quadrant 3: Not Important & Urgent → Delegate or minimize.

     • Quadrant 4: Not Important & Not Urgent → Eliminate or reduce.

5. Act According to Strategy

   • Focus first on Quadrant 1, but invest heavily in Quadrant 2 to prevent crises.

   • Guard against time robbers in Quadrant 3.

   • Avoid time-wasters in Quadrant 4.

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Advantages (Five Key Points)

1. Simple and easy to use – intuitive for anyone to apply.

2. Helps focus on what really matters – prevents constant firefighting.

3. Improves productivity and performance – structured task handling.

4. Encourages proactive work (Quadrant 2) – reduces stress and crisis situations.

5. Promotes better work-life balance – keeps attention on important goals.

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Drawbacks (Five Key Points)

1. Subjective classification – tasks may be misjudged between urgent/important.

2. Time-consuming for beginners – requires discipline to apply consistently.

3. Doesn’t account for interdependencies – some tasks overlap between quadrants.

4. Over-simplification – not all tasks fit neatly into four categories.

5. May neglect creativity/innovation – excessive focus on urgency can suppress long-term exploration.

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Information Usually Sought

• Which tasks must be done immediately.

• Which tasks need scheduling and long-term attention.

• Which tasks can be delegated or minimized.

• Which tasks are wasting time and should be eliminated.

• How to shift tasks from Quadrant 1 (crisis mode) to Quadrant 2 (planning mode) for better results.

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2. Boston Consulting Group (BCG) Matrix

Definition

The BCG Matrix is a strategic portfolio management tool that helps companies allocate resources across their business units or products based on market growth rate (industry attractiveness) and relative market share (competitive strength).

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Steps in Conducting the Analysis

1. Identify Strategic Business Units (SBUs)

   • Break down company into products, services, or divisions.

2. Calculate Relative Market Share

   • Formula: SBU Sales this year ÷ Leading Competitor’s Sales this year.

3. Calculate Market Growth Rate

   • Formula: (Industry sales this year – Industry sales last year) ÷ Last year’s sales.

4. Plot on the Matrix (2 × 2 Grid)

   • X-axis: Relative Market Share (High vs. Low).

   • Y-axis: Market Growth Rate (High vs. Low).

5. Classify SBUs into Four Categories

   • Stars: High growth, high market share – require heavy investment.

   • Cash Cows: Low growth, high market share – generate steady cash flow.

   • Question Marks: High growth, low market share – require careful evaluation.

   • Dogs: Low growth, low market share – candidates for divestment.

6. Decide Resource Allocation

   • Invest in Stars and Question Marks with potential.

   • Use Cash Cows to fund growth.

   • Minimize or exit Dogs.

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Advantages (Five Key Points)

1. Simple and easy to understand – visual and intuitive.

2. Helps balance the portfolio – identifies cash generators vs. cash users.

3. Supports strategic decision-making – guides investment/divestment.

4. Future-oriented – links current business to long-term planning.

5. Encourages focus on growth opportunities – identifies where to expand.

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Drawbacks (Five Key Points)

1. Over-simplified – ignores medium categories (not just high/low).

2. Market definition issues – hard to set proper boundaries.

3. Market share ≠ Profitability – high share may still mean high costs.

4. Ignores other success factors – innovation, brand value, synergies not considered.

5. “Dogs” may still add value – sometimes support other businesses indirectly.

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Information Usually Sought

• Which SBUs/products are profitable cash generators (Cash Cows).

• Which SBUs/products need investment to grow (Stars, Question Marks).

• Which SBUs/products are draining resources (Dogs).

• How to balance short-term profits and long-term growth.

• Where to allocate capital, time, and management focus.

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✅ In short:

• Priority Matrix = time management & personal productivity.

• BCG Matrix = strategic business portfolio management.

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👍 Here’s a comparative summary table between the Priority Matrix (Eisenhower Method) and the BCG Matrix. This format is suitable for study notes, assignments, or presentations.

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Comparative Table: Priority Matrix vs. BCG Matrix

Aspect	Priority Matrix (Eisenhower Method)	BCG Matrix
Purpose	Helps individuals/managers prioritize tasks based on urgency and importance (time management).	Helps organizations allocate resources across business units/products based on market share and growth (portfolio management).
Focus Area	Task management & productivity.	Strategic business analysis & investment decisions.
Dimensions	1. Importance (High/Low) 2. Urgency (High/Low)	1. Market Growth Rate (High/Low) 2. Relative Market Share (High/Low)
Quadrants/Cells	Q1: Important & Urgent → Do immediately Q2: Important & Not Urgent → Plan & schedule Q3: Not Important & Urgent → Delegate/minimize Q4: Not Important & Not Urgent → Eliminate	Stars: High growth, high share Cash Cows: Low growth, high share Question Marks: High growth, low share Dogs: Low growth, low share
Steps in Conducting	1. List all tasks 2. Assign importance (scale 1–5) 3. Evaluate urgency 4. Plot tasks into quadrants 5. Act according to strategy	1. Identify SBUs/products 2. Calculate relative market share 3. Calculate market growth rate 4. Plot on 2×2 grid 5. Classify into 4 cells 6. Decide resource allocation
Advantages (5)	1. Simple & easy to use 2. Keeps focus on what matters 3. Improves productivity 4. Reduces stress (by focusing on Q2) 5. Supports better work-life balance	1. Simple & visual 2. Balances portfolio (cash generators vs. cash users) 3. Guides investment/divestment decisions 4. Future-oriented planning 5. Encourages growth focus
Drawbacks (5)	1. Subjective classification 2. Time-consuming for beginners 3. Over-simplification of tasks 4. Ignores interdependencies 5. May neglect creative/innovative work	1. Over-simplified (ignores medium cases) 2. Market boundaries unclear 3. Market share ≠ profits 4. Ignores other success factors (brand, innovation) 5. “Dogs” may still be valuable
Information Sought	- Which tasks to do now, plan, delegate, or eliminate - How to prevent tasks from becoming crises - How to balance urgent vs. important work	- Which products/businesses to invest in, hold, or divest - Which generate cash (Cash Cows) - Which require funds (Stars/Questions) - Which drain resources (Dogs)
Best Use Case	Personal or team time management and productivity planning.	Corporate strategic planning and resource allocation for business units/products.

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