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ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations

Dalton Ltd plans to close a plant. A pressure group with no power over Dalton is strongly opposed, and a major institutional investor with large holdings has shown no interest in the matter. Using Mendelow's matrix, which statement is correct?

The pressure group has high interest but low power, so it should be kept informed. The institutional investor has high power but low interest, so it should be kept satisfied. Neither is a key player because that requires both high power and high interest.

  1. AThe pressure group is a key player and the investor should be kept informed
  2. BThe pressure group should be kept informed and the investor should be kept satisfiedCorrect
  3. CBoth should be treated as key players
  4. DThe pressure group should be kept satisfied and the investor given minimal effort

Explanation

The pressure group has high interest but low power, so it belongs in 'keep informed'. The investor has high power but low interest, so it belongs in 'keep satisfied'. The other options reverse or misapply these quadrants.

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