ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility
Corvino Pharma's institutional shareholders hold a large block of shares but rarely engage beyond voting on routine resolutions. Employees in a small subsidiary are very interested in a proposed pay freeze but have little influence. Which pairing correctly applies Mendelow's matrix?
Institutional shareholders belong in keep satisfied because they have high power but low interest, while the subsidiary employees belong in keep informed because they have high interest but little power. The other pairings reverse or misapply the quadrants.
- AInstitutional shareholders: keep informed; subsidiary employees: keep satisfied
- BInstitutional shareholders: keep satisfied; subsidiary employees: keep informedCorrect
- CInstitutional shareholders: key players; subsidiary employees: minimal effort
- DInstitutional shareholders: minimal effort; subsidiary employees: key players
Explanation
Institutions have high power and low interest, so keep satisfied. The employees have low power and high interest, so keep informed. The other options swap the quadrants or misread the interest levels.
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