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ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Altavista Foods announces a restructuring that will close two plants. Before the announcement, its trade union was classed as low interest, high power in the matrix. After the announcement, union interest rises sharply. What does this imply under Mendelow's model?

The union moves into the key player quadrant, because its power remains high and its interest has risen. Altavista should manage it closely, consult it and involve it in decisions, since it can now actively use its power against the closures.

  1. AThe union moves to keep informed, so communication frequency can fall
  2. BThe union moves to key player, so the company should manage it closely and involve it in decisionsCorrect
  3. CThe union moves to minimal effort because restructuring reduces its power
  4. DThe union stays in the same quadrant because interest does not affect classification

Explanation

Raising interest while power stays high moves the union from keep satisfied to key player. This requires close management, consultation and likely involvement in decisions. Keep informed needs low power, which is not the case here.

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