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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

Powergen Co adopts a sustainability strategy only after investors with high power and high interest threaten to divest unless emissions fall. Using Mendelow's matrix, how should management mainly treat these investors?

Management should manage them closely as key players. Mendelow's matrix assigns this approach to stakeholders with both high power and high interest, and divestment threats show these investors have both, so they need active engagement.

  1. AKeep informed
  2. BMinimal effort
  3. CKeep satisfied
  4. DManage closely as key playersCorrect

Explanation

Mendelow's matrix places stakeholders with high power and high interest in the key player category, to be managed closely and involved in decisions. Keep satisfied applies to high power but low interest. Keep informed applies to low power and high interest. Minimal effort applies to low power and low interest. Here the investors have both high power and high interest.

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