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

Zentra Foods plans to close a processing plant in a small town where it is the largest employer. Management classifies the local residents' association as having high interest but little power over the decision. Using Mendelow's power/interest matrix, which strategy does this imply for the association?

The association should be kept informed. Under Mendelow's matrix, a stakeholder with high interest but low power belongs in the keep informed quadrant, because it cares strongly about the plant closure but cannot easily force the company to change its decision.

  1. AKeep satisfied
  2. BManage closely
  3. CKeep informedCorrect
  4. DMinimal effort

Explanation

Mendelow's matrix places stakeholders with high interest and low power in the 'keep informed' quadrant. Keep satisfied is for high power and low interest, and manage closely is for high power and high interest. Minimal effort is for low power and low interest, which does not fit a group strongly affected by the closure.

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