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

Which statement about the use of Mendelow's power-interest matrix is correct?

Stakeholder positions on Mendelow's matrix can change over time as their power or interest alters, for instance when an issue arises affecting them. Therefore the mapping must be reviewed periodically rather than treated as fixed, and it is not a measure of ethical importance.

  1. AStakeholders may move between quadrants over time, so the analysis needs to be reviewedCorrect
  2. BOnce placed in a quadrant, a stakeholder stays there permanently
  3. CIt identifies which stakeholders are ethically most important regardless of power
  4. DIt ranks stakeholders solely by the size of their financial investment

Explanation

The matrix is a snapshot based on power and interest, both of which can change, for example when a regulator announces an investigation or a minor shareholder builds a larger holding. Hence positions must be reviewed. It does not measure ethics or investment size.

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