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

Norvik Energy plans a new gas plant. Local residents have high interest but little formal power, and a minor pension fund has low interest and low power. Using Mendelow's matrix, how should Norvik treat the residents?

Norvik should keep the residents informed. On Mendelow's matrix, high interest with low power places a group in the keep informed quadrant, so communication and consultation are appropriate, while watching for any increase in their power through coalitions.

  1. AKeep informed, as they have high interest but low powerCorrect
  2. BKey player, requiring full involvement in decisions
  3. CMinimal effort, as they have low interest and low power
  4. DKeep satisfied, as they have high power but low interest

Explanation

Mendelow plots power against interest. High interest and low power gives 'keep informed'. Residents might gain power by forming coalitions or using the media, so they should be monitored, but as described they are not key players.

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