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Syllabus A: The business organisation and its external environmentSyllabus AMendelow's MatrixStakeholders
ACCA · Question 02 · Syllabus A: The business organisation and its external environment
Section A
Titanium Forge, a heavy manufacturing plant, is planning a massive expansion that will require rezoning local agricultural land. The local farmers' union has high interest in stopping the expansion but currently lacks the financial or political power to block it. According to Mendelow's Stakeholder Matrix, how should Titanium Forge manage the farmers' union?
Section A
Titanium Forge, a heavy manufacturing plant, is planning a massive expansion that will require rezoning local agricultural land. The local farmers' union has high interest in stopping the expansion but currently lacks the financial or political power to block it. According to Mendelow's Stakeholder Matrix, how should Titanium Forge manage the farmers' union?
Answer options:
A.
Minimal effort
B.
Keep informed
C.
Keep satisfied
D.
Key players
How to approach this question
Map the stakeholder on Mendelow's matrix: Interest is High, Power is Low. The corresponding strategy is 'Keep informed'.
Full Answer
B.Keep informed✓ Correct
Mendelow's matrix categorizes stakeholders by Power and Interest. The farmers' union has high interest (their land is affected) but low power (lack of financial/political clout). The correct strategy for High Interest / Low Power is 'Keep informed'.
Common mistakes
Confusing 'Keep informed' with 'Keep satisfied'. Remember: Satisfied is for those with Power who don't currently care much.
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