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

Using the Mendelow power/interest matrix, a pressure group has high interest in a company's pollution record but little power to influence its decisions. Shareholders have high power and high interest. The directors want to expand a polluting plant. Which approach is most appropriate?

The pressure group should be kept informed, because Mendelow's matrix places high-interest, low-power stakeholders in that category, while the high-power, high-interest shareholders are key players who need close management. Ignoring the group is unwise since its power may grow, but giving it equal say overstates its position.

  1. ATreat the pressure group as a key player and give it equal say with shareholders in the decision
  2. BKeep the pressure group informed, as it has high interest but low power, while managing shareholders closely as key playersCorrect
  3. CIgnore the pressure group completely, as low power means it can never become influential

Explanation

High interest with low power places the pressure group in the 'keep informed' category, while high power and high interest shareholders are key players needing close management. Equal say overstates the group's power. Ignoring it is risky because a group's power can increase, for example through media attention.

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