ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
Brightwell Ltd plans to close a factory. Local residents have little power but strongly oppose the closure, and they have gained support from a national newspaper that is publicising their case. Which Mendelow-based analysis best explains why management should reassess its approach to the residents?
Their position may shift towards high power, because media support amplifies their influence through public opinion. Stakeholder positions on the power/interest matrix change over time, so management should not treat the residents as a group to be ignored simply because they currently have little power.
- ATheir low power means they should be ignored as minimal effort stakeholders
- BTheir position on the matrix may shift towards high power because the newspaper amplifies their influenceCorrect
- CTheir high interest automatically makes them key players
- DTheir interest is irrelevant because they are external stakeholders
Explanation
Stakeholder positions on the matrix are not fixed. Media coverage can give a low-power group indirect power through public opinion, moving them from 'keep informed' towards key player. Treating them as minimal effort would ignore this, and high interest alone does not make a group a key player.
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