ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
A local residents' group has little formal power over a company but is very interested in its plans to expand a factory. Under Mendelow's matrix, how should the company classify and treat the group?
The residents' group is a low power, high interest stakeholder and should be kept informed. The company should communicate its plans openly, as the group cares strongly about the outcome, although it lacks the power to block the expansion directly.
- AKey player, to be managed closely
- BLow power, high interest, to be kept informedCorrect
- CLow power, low interest, to be given minimal effort
Explanation
The group has low power and high interest, so it falls in the keep informed category. Key players need both high power and high interest. Minimal effort would suit a group showing little interest, which does not describe this group.
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