Business and Technology · Stakeholders in business organisations

Mendelow's Power-Interest Matrix Explained for ACCA BT

Updated 11 October 2026 · Fact-checked

Mendelow's matrix is a grid that plots stakeholders by their power over an organisation and their interest in it. The four boxes are keep informed, minimal effort, key players and keep satisfied. To solve a question, judge power first, then interest, then match the box to the right management approach.

Understand Mendelow's Power-Interest Matrix

A stakeholder is any person or group that affects, or is affected by, what an organisation does. Shareholders, employees, customers, lenders, suppliers, government and local communities are all examples. An organisation cannot give every stakeholder the same attention, so it needs a way to prioritise.

Mendelow's power-interest matrix is that tool. It is a two-by-two grid. The vertical axis shows power: the ability to influence the organisation's strategy or actions. The horizontal axis shows interest: how much the stakeholder cares about what the organisation does. Each axis is simply low or high.

This gives four boxes:

Low power, low interest: minimal effort. Little attention is needed. Monitor them.
Low power, high interest: keep informed. They care but cannot do much. Communicate with them regularly.
High power, low interest: keep satisfied. They could become a problem if upset, but they are not paying much attention now. Keep them content and avoid surprises.
High power, high interest: key players. They can influence strategy and they care. Involve them in decisions and consult them closely.

The key difference students search for is this. A key player is both powerful and highly interested, so you actively involve them. A keep satisfied stakeholder is powerful but not very interested, so you keep them happy without heavy involvement.

Stakeholders can move between boxes. A quiet regulator may become a key player after a scandal. A local community may gain power through media attention. The matrix is a snapshot, so it should be reviewed over time.

Key formulas to remember

Key players: High power + High interest → Key players; Manage closely. Involve in decisions, consult often, aim for their support.
Keep satisfied: High power + Low interest → Keep satisfied; Keep content and avoid unpleasant surprises. They may move to key players if their interest rises.
Keep informed: Low power + High interest → Keep informed; Provide regular information and listen to views. They can lobby or form alliances with powerful groups.
Minimal effort: Low power + Low interest → Minimal effort; Monitor only. Do not spend significant resources.

How to solve Mendelow's Power-Interest Matrix questions

Use this method for any question that gives you a stakeholder and asks where they sit or how to manage them.

1Identify the stakeholder and the situation described in the question.
2Ask: can this stakeholder influence the organisation's decisions or resources? Decide high or low power.
3Ask: how much does this stakeholder care about the organisation's actions? Decide high or low interest.
4Combine the two answers to find the box: key players, keep satisfied, keep informed or minimal effort.
5Match the box to the correct approach: involve, keep happy, communicate or monitor.
6Check the wording for changes, such as a new law, a crisis or a takeover bid, that could move the stakeholder to another box.
7Re-read what the question asks (the box, the approach, or the difference) and answer only that.

Quickest way: Power first, then interest

When to use it: Use this in Section A multiple choice questions where you have around a minute per question.

Underline the clue words for power: can block, controls funding, can fine, can withdraw.
Underline the clue words for interest: affected directly, depends on, concerned about, indifferent.
If the stakeholder is strong on both, pick key players. If strong on power only, pick keep satisfied.
If strong on interest only, pick keep informed. If weak on both, pick minimal effort.
Eliminate options that swap the two axes before choosing.

Common mistakes in Mendelow's Power-Interest Matrix

Putting the axes the wrong way round, for example calling a high-interest, low-power group 'keep satisfied'.
Students memorise box names without linking them to power and interest.
Fix: Remember that the first word of each approach follows power: high power means key players or keep satisfied. Keep informed is for those who only care.
Confusing key players with keep satisfied.
Both boxes have high power, so they look alike.
Fix: Check interest. If the stakeholder is actively engaged, they are key players. If they are passive for now, they are keep satisfied.
Judging power by size or importance rather than ability to influence.
Students assume big groups, such as customers, must have high power.
Fix: Ask whether the group can actually change decisions. Many small customers acting alone usually have low power.
Treating the matrix as fixed.
The grid looks like a permanent label.
Fix: Note that stakeholders can move boxes when events change their power or interest, and that the organisation should review regularly.
Ignoring the minimal effort box or saying it means ignoring the stakeholder.
Students read 'minimal' as 'none'.
Fix: Say the stakeholder should be monitored, since their position can change.

Worked examples

Example 1

A listed company's main bank has lent a large sum and can demand early repayment if covenants are breached. The bank is closely watching the company's monthly results. In which box of Mendelow's matrix does the bank sit, and how should the company manage it?

Show the solution

Power: the bank can demand repayment, so its power is high.
Interest: it is monitoring results monthly, so its interest is high.
High power and high interest gives the key players box.
Management approach: involve the bank, consult it on major financing decisions and share information openly.

Answer: Key players. Manage closely by consulting and involving the bank in important decisions.

Example 2

A government tax authority has strong powers to audit and penalise a company. It currently shows little interest in the company because its returns have always been accurate. Which box does it sit in, and what is the difference between this box and key players?

Show the solution

Power: the authority can audit and penalise, so power is high.
Interest: it shows little interest at present, so interest is low.
High power and low interest gives keep satisfied.
Approach: keep it content by filing accurate returns on time and avoiding surprises.
Difference from key players: key players are also highly interested, so the company actively involves them. Here the company simply keeps the authority satisfied.
Note: if the authority's interest rises, for example after a query, it could move to key players.

Answer: Keep satisfied. It has high power but low interest, whereas key players have both high power and high interest and need active involvement.

Exam tips

Most questions give a short scenario and ask for one box. Decide power and interest separately before looking at the options.
Read for words that signal change. The question may ask where a stakeholder will move to after an event.
In multi-task questions, give a short reason for each placement. One line on power and one on interest is enough.
Know the approach for each box as well as its name, because some questions ask how to manage a group.
Do not confuse Mendelow with other stakeholder models. Mendelow classifies by power and interest only.

Practice questions from Stakeholders in business organisations

Mendelow's Power-Interest Matrix in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Strategic ProfessionalMendelow's Power-Interest Matrix

Mendelow's Power-Interest Matrix: frequently asked questions

What is the difference between keep satisfied and key players?

Both have high power. Key players also have high interest, so you involve and consult them. Keep satisfied stakeholders have low interest, so you keep them content without heavy involvement.

What does Mendelow's matrix measure?

It measures two things: a stakeholder's power to influence the organisation and their interest in its actions. These two measures place the stakeholder in one of four boxes.

Can a stakeholder move between boxes?

Yes. Events such as a crisis, new regulation or media attention can raise power or interest. This is why organisations should review their stakeholder map regularly.

Is Mendelow's matrix tested in the BT exam?

It is part of the stakeholder content in Business and Technology. Expect it in Section A objective questions and possibly within a Section B multi-task question on the organisation and its environment.