ACCA Strategic Professional · Strategic Business Leader · Environmental issues
Corvana Mining wants to open a new quarry. Management has mapped stakeholders on Mendelow's matrix and intends to put a local environmental group, currently low power and high interest, under 'keep informed' only. The group is about to form a coalition with the regional planning authority, which holds licensing power and shares its objections. Which criticism of management's approach is most valid?
The key criticism is that management treats the classification as fixed. A coalition with the licensing authority would transfer power to the environmental group, moving it toward key player, so the company should anticipate this and engage it more actively rather than merely informing it.
- AIt ignores that coalition-building can transfer power to the group, so a static classification understates its future influenceCorrect
- BThe matrix cannot classify pressure groups, so the analysis is invalid
- CKeeping informed is always the correct response for high interest stakeholders
- DPlanning authorities should be classed as low interest because they are regulators
Explanation
Power can be gained through alliances. The coalition with a licensing authority would give the group effective high power, shifting it toward key player. Option C is wrong because the strategy depends on power too; D is unsupported as the authority shares the objections.
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