ExpertMedium2 marksMultiple Choice
ACCA · Question 02 · Syllabus A: Business organisation and its external environment
QuantumLeap is a rapidly growing tech startup. A group of venture capitalists recently acquired a 40% stake in the company and are highly concerned about the return on their investment. They have the ability to block major strategic decisions.
According to Mendelow's Stakeholder Matrix, how should QuantumLeap's management classify and treat these venture capitalists?
QuantumLeap is a rapidly growing tech startup. A group of venture capitalists recently acquired a 40% stake in the company and are highly concerned about the return on their investment. They have the ability to block major strategic decisions.
According to Mendelow's Stakeholder Matrix, how should QuantumLeap's management classify and treat these venture capitalists?
Answer options:
A.
Low Power, High Interest - Keep Informed
B.
High Power, Low Interest - Keep Satisfied
C.
High Power, High Interest - Key Players
D.
Low Power, Low Interest - Minimal Effort
How to approach this question
Assess the power level (ability to block decisions = high) and interest level (highly concerned about ROI = high).
Full Answer
C.High Power, High Interest - Key Players✓ Correct
Mendelow's matrix categorizes stakeholders by Power and Interest. High Power and High Interest stakeholders are 'Key Players' and require constant engagement and participation in decision-making.
Common mistakes
Failing to recognize that a 40% stake with blocking rights constitutes high power.
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