ACCA Strategic Business Leader (SBL) Practice Exam

What model is used to manage stakeholders effectively during strategy formulation?

1. Mendelow's matrix

2. Ansoff's matrix

3. Cultural web

4. TARA

The correct answer is: Mendelow's matrix

Mendelow's Matrix is a strategic tool designed specifically to assess the power and interest of various stakeholders in relation to a project's or organization’s strategy. It categorizes stakeholders into four different types based on their levels of power and interest, which enables organizations to manage them more effectively during the strategy formulation process. By identifying stakeholders and understanding their influence, organizations can take appropriate actions to engage with each group. Those with high power and high interest need to be closely managed and kept satisfied, while those with high power but low interest require regular updates to ensure they remain engaged. Stakeholders with low power but high interest should be kept informed, and those with low power and low interest may require minimal communication. This tailored approach ensures that strategic decisions consider the various perspectives and priorities of stakeholders, leading to smoother implementation and greater success of strategic initiatives. Additionally, the insights gained from this matrix help mitigate risks associated with stakeholder resistance, fostering a more collaborative environment. The other options, while valuable in their respective contexts, do not specifically focus on stakeholder management in the same way. Ansoff's Matrix is more concerned with market penetration and growth strategies, the Cultural Web analyzes organizational culture, and TARA focuses on risk analysis. Therefore, Mendelow's Matrix stands out as