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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 most accurate?

Stakeholders can move between quadrants over time, so the matrix must be reviewed regularly. Events such as a crisis, a change in law or a larger shareholding can alter a group's power or interest, changing the strategy management should adopt towards it.

  1. AStakeholders may move between quadrants over time, so the analysis needs regular reviewCorrect
  2. BOnce stakeholders are placed in a quadrant their position stays fixed for the life of the organisation
  3. CIt classifies stakeholders only as internal, connected or external
  4. DIt measures the financial return each stakeholder expects

Explanation

Power and interest change with events, such as a scandal raising a regulator's interest or a shareholder building a bigger stake. Stakeholder positions are therefore dynamic. The internal/connected/external classification is a different model, not Mendelow's.

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