Multi-Criteria Decision Analysis Matrix

The Multi-Criteria Decision Analysis Matrix is a tool used to evaluate multiple criteria when making decisions. It is a 2x2 matrix that allows for a comprehensive evaluation of the pros and cons of a decision.

At a very high level, the Multi-Criteria Decision Analysis Matrix is used in the context of business, marketing, finance.

Multi-Criteria Decision Analysis Matrix quadrant descriptions, including examples
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What is the Multi-Criteria Decision Analysis Matrix?

A visual explanation is shown in the image above. The Multi-Criteria Decision Analysis Matrix can be described as a matrix with the following quadrants:

  1. Positive: The Positive quadrant is used to evaluate criteria that are beneficial to the decision. Example: potential for growth, low risk, low cost
  2. Negative: The Negative quadrant is used to evaluate criteria that are detrimental to the decision. Example: high risk, high cost, low potential for growth
  3. Uncertain: The Uncertain quadrant is used to evaluate criteria that are uncertain or unknown. Example: unknown potential for growth, unknown risk, unknown cost
  4. Unknown: The Unknown quadrant is used to evaluate criteria that are unknown or impossible to evaluate. Example: unknown potential for growth, unknown risk, unknown cost

What is the purpose of the Multi-Criteria Decision Analysis Matrix?

The Multi-Criteria Decision Analysis Matrix (MCDA) is a tool used to evaluate multiple criteria when making decisions. It is a 2x2 matrix that allows for a comprehensive evaluation of the pros and cons of a decision. The matrix is divided into four quadrants, each with its own criteria. The criteria used to evaluate each quadrant can be tailored to the specific decision being made.

The top-left quadrant is labeled “Positive” and is used to evaluate criteria that are beneficial to the decision. For example, if a company is deciding whether or not to invest in a new product, the criteria in this quadrant could include “potential for growth”, “low risk”, and “low cost”.

The top-right quadrant is labeled “Negative” and is used to evaluate criteria that are detrimental to the decision. For example, if a company is deciding whether or not to invest in a new product, the criteria in this quadrant could include “high risk”, “high cost”, and “low potential for growth”.

The bottom-left quadrant is labeled “Uncertain” and is used to evaluate criteria that are uncertain or unknown. For example, if a company is deciding whether or not to invest in a new product, the criteria in this quadrant could include “unknown potential for growth”, “unknown risk”, and “unknown cost”.

The bottom-right quadrant is labeled “Unknown” and is used to evaluate criteria that are unknown or impossible to evaluate. For example, if a company is deciding whether or not to invest in a new product, the criteria in this quadrant could include “unknown potential for growth”, “unknown risk”, and “unknown cost”.

The Multi-Criteria Decision Analysis Matrix is a powerful tool for making decisions. It allows for a comprehensive evaluation of the pros and cons of a decision and can help to ensure that all criteria are taken into account.


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What templates are related to Multi-Criteria Decision Analysis Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Multi-Criteria Decision Analysis Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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