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ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations

A local residents' association has little power over a quarry company but is highly interested in noise and dust from its operations. According to Mendelow's matrix, how should the company treat this group?

The residents' association should be kept informed. It has high interest but low power, so regular communication about noise and dust is appropriate, while the company need not give it the influence or involvement given to high-power key players.

  1. AKeep informedCorrect
  2. BKeep satisfied
  3. CKey player
  4. DMinimal effort

Explanation

Low power and high interest places the group in the 'keep informed' quadrant. The company should communicate regularly about its activities. 'Minimal effort' is wrong because the group's high interest means it may lobby others and affect reputation.

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