ExpertMedium2 marksMultiple Choice
ACCA · Question 01 · Syllabus A: The business organisation and its external environment
A highly vocal but underfunded local community group is actively opposing the construction of a new lithium extraction facility by TerraMin PLC. According to Mendelow's Stakeholder Matrix, how should TerraMin PLC classify and manage this community group?
A highly vocal but underfunded local community group is actively opposing the construction of a new lithium extraction facility by TerraMin PLC. According to Mendelow's Stakeholder Matrix, how should TerraMin PLC classify and manage this community group?
Answer options:
A.
Minimal effort
B.
Keep informed
C.
Keep satisfied
D.
Key players
How to approach this question
Assess the stakeholder's power (funding/influence) and interest (vocal opposition). Map these two variables onto Mendelow's matrix.
Full Answer
B.Keep informed✓ Correct
Mendelow's matrix categorizes stakeholders based on Power and Interest. High Interest + Low Power = Keep Informed. If ignored, they might lobby a high-power group (like the government) to act on their behalf.
Common mistakes
Students often confuse 'Keep informed' with 'Minimal effort' because the group lacks funding.
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