ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
In Mendelow's power/interest matrix, how should an organisation normally treat a stakeholder group that has high power but low interest in the organisation's activities?
The organisation should keep a high-power, low-interest stakeholder satisfied. They can influence outcomes if they become unhappy, but they take little interest day to day, so detailed communication is unnecessary. Keep informed applies to low power and high interest, and minimal effort applies to low power and low interest.
- AKeep satisfiedCorrect
- BKeep informed
- CMinimal effort
Explanation
High power with low interest falls in the 'keep satisfied' quadrant. These stakeholders can affect the organisation if their concerns are ignored, but they do not need detailed ongoing communication. 'Keep informed' is for low power and high interest, and 'minimal effort' is for low power and low interest.
Did you get it right without looking?
One question tells you little. A timed set on Stakeholders in business organisations shows your real accuracy, how long you take and where you lose marks.
More Stakeholders in business organisations questions
- A listed company's directors reject a proposal to close a profitable but polluting plant, saying the law is met and their duty is only to ma…
- Using the Mendelow power/interest matrix, a pressure group has high interest in a company's pollution record but little power to influence i…
- Karta plc's board proposes to cut costs by closing a factory and moving production overseas. Shareholders expect higher profits, while the l…
- A board argues that investing in better employee training and supplier relationships, while reducing this year's profit, is consistent with …
- The directors of Marlow Co plan to close a factory and move production overseas. This will raise profit, but the local community will lose i…
- Under Mendelow's power-interest matrix, a pension fund holds a large shareholding in a company but takes little interest in day-to-day opera…