ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
Which of the following is a recognised limitation of Mendelow's power-interest matrix?
A key limitation is that the matrix looks only at power and interest, so it ignores the legitimacy and urgency of stakeholder claims. It can be used for internal and external stakeholders alike, and it does differentiate between levels of power.
- AIt does not address the legitimacy or urgency of stakeholder claimsCorrect
- BIt cannot be applied to external stakeholders
- CIt requires stakeholders to be ranked using only financial data
- DIt assumes all stakeholders have equal power
Explanation
The matrix considers only power and interest, so it does not capture legitimacy or urgency, which are covered in other models such as Mitchell, Agle and Wood. It applies to both internal and external stakeholders and explicitly distinguishes levels of power.
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