Cima E2 Exam Question No 26

Question No 26:

What is Stakeholder Mapping (Mendelow's Matrix)?
 Mendelow's matrix helps to identify the relationships that should be built with different stakeholders. A stakeholder's position in the matrix depends on two factors:
Power- The power to influence the organization, and affect its decision making.
Interest - The interest which the stakeholder has in the organization. The greater the interest in the organization the greater the level of communication that will be required with them. Many employees have little power, but good communication of plans is important to retain their loyalty and motivation. Each stakeholder is placed in one box depending on each factor and then treated differently depending on where they are:
Minimal effort - e.g. Temporary employee. Give them basic information to meet their needs, but pay little attention to them in decision making and strategy.
Keep informed - e.g. Full time employee. Regularly communicate with them, particularly things they are interested in. This helps retain good relationships and avoids them seeking to increase power (e.g. through staff grouping together in a union).
Keep satisfied e.g. Government. They have high power so to avoid them exercising the power they should be kept satisfied e.g. by paying them on time or meeting whatever needs they have. As they have little interest only information is given to them as is necessary (e.g. profit information to government to help assess tax payable).
Key players (Keep Close) e.g. Major shareholder - Regular communication is
maintained and their goals and objectives included as part of the strategy setting process and business approach.