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

Verdana Textiles' local community group has little formal power but is intensely interested in the factory's effluent. A director proposes that the group be ignored because it is not powerful. Which response best reflects Mendelow's matrix and its limitations?

The group should be kept informed, with monitoring of its potential to gain power through alliances with media or regulators. It sits in the low power, high interest quadrant. Ignoring it is risky because positions in the matrix can change over time.

  1. AIgnore the group, since only high power stakeholders matter in the matrix
  2. BTreat the group as a key player and give it a board seat
  3. CKeep the group informed, while monitoring whether it could gain power by forming alliances, for example with media or regulatorsCorrect
  4. DKeep the group satisfied because low power stakeholders always become high power

Explanation

Low power, high interest stakeholders are placed in the keep informed quadrant. The matrix is static, so the group could gain power through coalitions, and this should be monitored. Ignoring it is wrong, and it does not automatically become a key player.

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