ExpertMedium2 marksMultiple Choice
Syllabus A: The business organisation and its external environmentSyllabus AStakeholder MatrixMendelow
ACCA · Question 01 · Syllabus A: The business organisation and its external environment
[Section A] A global non-governmental organization (NGO) providing clean water infrastructure in developing nations relies heavily on a single major philanthropic donor for 80% of its funding. The donor rarely interferes with daily operations but requires annual impact reports. According to Mendelow's Stakeholder Matrix, how should the NGO classify and manage this donor?
[Section A] A global non-governmental organization (NGO) providing clean water infrastructure in developing nations relies heavily on a single major philanthropic donor for 80% of its funding. The donor rarely interferes with daily operations but requires annual impact reports. According to Mendelow's Stakeholder Matrix, how should the NGO classify and manage this donor?
Answer options:
A.
High power, high interest; Key player
B.
High power, low interest; Keep satisfied
C.
Low power, high interest; Keep informed
D.
Low power, low interest; Minimal effort
How to approach this question
Analyze the two dimensions of Mendelow's matrix: Power (ability to influence) and Interest (desire to influence).
Full Answer
B.High power, low interest; Keep satisfied✓ Correct
Mendelow's matrix categorizes stakeholders by Power and Interest. A donor providing 80% of funding has immense power over the NGO's survival. However, because they only require annual reports and do not interfere daily, their active interest is low. The correct strategy is to 'Keep Satisfied'.
Common mistakes
Students often confuse 'high financial contribution' with 'high interest'. Interest in Mendelow's matrix refers to the active desire to influence day-to-day decisions.
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