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Stakeholder Analysis and Mendelow's Matrix for ACCA SBL

Updated 11 October 2026 · Fact-checked

Stakeholder analysis identifies who is affected by or can affect an organisation, then ranks them. Mendelow's matrix plots each stakeholder by power and interest, giving four strategies: keep satisfied, manage closely, keep informed, and minimal effort. In SBL you apply it to the case scenario and recommend actions.

Understand Stakeholder Analysis and Mendelow's Matrix

A stakeholder is any person or group that can affect, or is affected by, what an organisation does. Examples are shareholders, employees, customers, lenders, suppliers, regulators, the government, local communities and pressure groups.

Stakeholders are often grouped as internal (directors, employees), connected (shareholders, lenders, suppliers, customers) and external (government, regulators, the media, the public). Some people also split them into primary (the business cannot survive without them) and secondary (they can influence it but are not essential to daily operations).

Not all stakeholders matter equally, and their wishes often conflict. Shareholders want profit, while communities want lower pollution. So you must decide whose views carry most weight. Mendelow's matrix does this using two questions.

Power is the ability to influence strategy or force the organisation to act. Sources include voting rights, control of resources, legal authority and the ability to harm reputation. Interest is how much the stakeholder cares about what the organisation does. A stakeholder can have high interest but no power, such as a small local community. Another can have high power but low interest, such as a regulator who is not currently concerned.

The grid gives four boxes. High power, high interest: key players, so manage closely and involve them in decisions. High power, low interest: keep satisfied, so consult but do not overload them. Low power, high interest: keep informed, as they can lobby or join forces with powerful groups. Low power, low interest: minimal effort, so monitor only.

The position is not fixed. A scandal or new law can raise interest or power. Good answers say how stakeholders might move across the grid and what that means for management.

Key rules to remember

High power, high interest
Key players → manage closely
Involve them in decisions and seek their support. Their opposition can block strategy.
High power, low interest
Keep satisfied
Consult occasionally and avoid surprises. Interest may rise if they feel ignored.
Low power, high interest
Keep informed
Communicate openly. They can gain power by lobbying or allying with powerful stakeholders.
Low power, low interest
Minimal effort
Monitor for change. Do not spend significant resources.
Power and interest definitions
Power = ability to influence; Interest = willingness to do so
Interest is how much they care, not how much they are affected financially.

How to solve Stakeholder Analysis and Mendelow's Matrix questions

Use this method for any SBL stakeholder task, whether it asks you to analyse, prioritise or recommend how to manage stakeholders.

  1. 1Read the requirement and note whether it asks you to identify, assess, prioritise or recommend a response.
  2. 2List the relevant stakeholders from the scenario. Use named groups and facts from the case, not generic lists.
  3. 3For each, judge power and interest and give a reason taken from the scenario, such as share ownership, legal powers or media influence.
  4. 4Place each stakeholder in a box of the matrix and name the strategy that follows.
  5. 5Explain what the organisation should actually do for the key stakeholders, such as consultation, briefings, concessions or negotiation. Note any conflicts between them.
  6. 6Comment on movement. Say which stakeholders could change position and what events might trigger it.
  7. 7Add a limitation or judgement, for example that power is hard to measure, and give a clear recommendation in the format asked (report, memo, briefing note).

Quickest way: Four-box shortlist

When to use it: Use when time is short, or for a 10 to 15 mark part of a larger task.

  1. Pick the 4 to 6 stakeholders most visible in the scenario.
  2. Write one line each: power reason, interest reason, box.
  3. Spend most words on the key players and on any high-power stakeholder whose interest could rise.
  4. Finish with one practical action per group and one risk if they are ignored.

Common mistakes in Stakeholder Analysis and Mendelow's Matrix

  • Describing the matrix without applying it to the case.

    Students recall theory from study and write it out.

    Fix: Use named stakeholders and case facts in every point. Theory only frames the answer.

  • Confusing power with interest.

    Both sound like importance. A stakeholder who is affected a lot is assumed to be powerful.

    Fix: Ask separately: can they force a change, and do they care? Employees may care deeply but have little power without a union.

  • Placing stakeholders in boxes with no reasons.

    The grid feels like the whole answer.

    Fix: Always justify with evidence from the scenario. Marks are for the reasoning, not the box.

  • Ignoring how stakeholders change over time.

    Students treat the matrix as a fixed snapshot.

    Fix: Add one point on triggers that shift position, such as a regulatory change, media story or share sale.

  • Giving generic strategies like 'manage closely' with no action.

    Students repeat the label from the model.

    Fix: Say what to do: hold meetings, share forecasts, negotiate terms, issue a statement. Link the action to the stakeholder.

  • Missing conflicts between stakeholders.

    Each group is analysed alone.

    Fix: State where interests clash, such as shareholders wanting cost cuts and employees wanting jobs, and say whose view should prevail and why.

Worked examples

Example 1

Terrafield plc plans to close an older factory in a small town and move production overseas. The factory employs 600 people, and most of the town depends on it. Shareholders hold 70% of shares in a few institutions. The local council can refuse planning permission for the new site. Analyse the stakeholders using Mendelow's matrix and recommend how to manage them. (12 marks)

Show the solution
  1. Institutional shareholders: they hold most shares and can vote on strategy or replace directors, so power is high. Interest is high because the move affects returns. Box: key players. Manage closely with detailed briefings on cost savings and risks.
  2. Local council: it has legal power over planning, so power is high. Interest is probably moderate until the closure is announced, then it will rise. Box: keep satisfied now, moving to key player. Consult early to avoid delays or refusals.
  3. Employees: interest is very high as jobs are at stake. Individually they have low power, but a union could strike or damage output. Box: keep informed, with potential to move to key player if organised. Offer clear communication, redundancy terms and retraining.
  4. Local community and media: interest is high, power is low alone but the media can damage the brand. Box: keep informed. Explain the reasons and support the town through transition funding.
  5. Conflict: shareholders want lower costs, while employees and the community want jobs. Because shareholders have the power, the board will likely proceed, but it should reduce reputational risk by consulting early and offering fair support.
  6. Recommendation: engage investors and the council first, then communicate openly with employees and the community. Monitor the union and media, as they could gain power.

Answer: Shareholders are key players, the council starts as keep satisfied and is likely to become a key player, and employees and community are keep informed with potential to gain power. Terrafield should manage investors and the council closely, communicate openly with the rest, and monitor shifts in position.

Example 2

A board asks you to explain the difference between power and interest in a stakeholder matrix, using a regulator and a small group of local residents near a chemical plant as examples. (6 marks)

Show the solution
  1. Define power: the ability to influence strategy or force action, through legal authority, resources or voting rights.
  2. Define interest: how much the stakeholder cares about the organisation's decisions and is willing to act on them.
  3. Regulator: it has high power, as it can fine, restrict or close the plant. Its interest may be low until a breach or incident occurs. Box: keep satisfied.
  4. Residents: they have high interest because of health and property concerns, but low power on their own. Box: keep informed.
  5. Show why the difference matters: the regulator needs reassurance and compliance, while residents need open communication. Residents could gain power by involving the media or the regulator, so they should not be ignored.
  6. Conclude that power determines whether a stakeholder can affect the organisation, and interest determines whether they will try.

Answer: Power is the ability to influence, and interest is the willingness to act. The regulator is high power, low interest (keep satisfied) and the residents are low power, high interest (keep informed), though the residents could gain power through the media or regulator.

Exam tips

  • Always tie every stakeholder to scenario facts. Marks are given for application, not model recall.
  • Use the matrix as a framework, then spend your time on recommendations and judgement to earn professional skills marks.
  • Say how positions might change and why. This is the analytical point that many students miss.
  • Look for stakeholder conflict in the case and recommend how the board should resolve it, rather than listing groups separately.
  • Match the format to the task. A briefing note to the board should be concise, structured and clear on action.

Practice questions from Environmental issues

Stakeholder Analysis and Mendelow's Matrix in other exams

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

Stakeholder Analysis and Mendelow's Matrix: frequently asked questions

What is Mendelow's matrix in ACCA SBL?

It is a grid that classes stakeholders by power and interest. The four boxes are key players, keep satisfied, keep informed and minimal effort. You use it to decide how to manage each group.

Do I need to draw the matrix in the exam?

A small sketch can help but is not required. Marks come from placing stakeholders with reasons and from your recommended actions. A short table-style list in your text works if the grid wastes time.

What is the difference between power and interest?

Power is the ability to influence or force an outcome. Interest is how much the stakeholder cares about it. A group can have one without the other, such as a regulator with power but little current interest.

How many stakeholders should I discuss?

Choose the ones most relevant to the scenario, usually four to six, and match the depth to the marks available. Focus on those with the greatest effect on the decision.