ExpertMedium2 marksMultiple Choice
ACCA · Question 01 · The business organisation and its external environment
AeroFarms, a vertical farming startup, is planning to build a massive indoor facility in an urban neighborhood. The local residents' association is highly concerned about the potential noise and light pollution, but they lack the legal or financial power to stop the development. According to Mendelow's Stakeholder Matrix, how should AeroFarms' management treat this residents' association?
AeroFarms, a vertical farming startup, is planning to build a massive indoor facility in an urban neighborhood. The local residents' association is highly concerned about the potential noise and light pollution, but they lack the legal or financial power to stop the development. According to Mendelow's Stakeholder Matrix, how should AeroFarms' management treat this residents' association?
Answer options:
A.
Keep satisfied
B.
Key players
C.
Keep informed
D.
Minimal effort
How to approach this question
Identify the two variables in Mendelow's matrix: Power and Interest. The residents have high interest (highly concerned) but low power (lack legal/financial means). Map this to the 'Keep informed' quadrant.
Full Answer
C.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 local government) and become Key Players.
Common mistakes
Students often confuse 'Keep satisfied' with 'Keep informed'. Remember: Power dictates if they need to be satisfied.
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