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

Harbourline Ports plc plans a new terminal. A national environmental regulator has strong legal powers over the planning permission but has shown little interest in the company's day-to-day activities so far. Using Mendelow's Power-Interest Matrix, how should the regulator be classified and what is the usual implied strategy?

The regulator is a high power, low interest stakeholder, so the Mendelow strategy is to keep it satisfied. It can block the project through its legal powers, but its interest is currently low, so the company should avoid triggering opposition while not over-investing in management.

  1. AHigh power, low interest: keep satisfiedCorrect
  2. BHigh power, high interest: key player, manage closely
  3. CLow power, high interest: keep informed
  4. DLow power, low interest: minimal effort

Explanation

The regulator has high power (control over permission) but low current interest. Mendelow suggests keeping such stakeholders satisfied so their interest does not rise into opposition. Key player status would require high interest, which is not shown.

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