Page 20 - E2 Integrated Workbook STUDENT 2018

Chapter 1

7.3 Managing stakeholders – the Mendelow Matrix

LEVEL OF INTEREST

Low High

LEVEL OF POWER Low MINIMAL INFORMED
KEEP
EFFORT

High
KEY
KEEP
SATISFIED
PLAYERS

7.4 Managing stakeholder conflict

Resolving competing objectives (Cyert and March)

 Satisficing usually by negotiation to keep most and not
necessarily all powerful stakeholders happy. It usually emerges as
a result of negotiation between the competing stakeholders.

 Sequential attention by giving stakeholders turns to realise their
objectives. Therefore, staff may get a large pay rise every 3 years
but, in between, pay remains static while dividends are paid.

 Side payments where compensation is given to make up for not
addressing particular stakeholders' objectives. For example, a
local community may have a new leisure centre built by a
company whose new superstore will inevitably increase noise and
traffic congestion in the area.

 Exercise of power where deadlock is overcome by powerful
figures forcing through their preferred strategic option.

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