Page 247 - E2 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
CHAPTER 1 – STRATEGY AND THE RATIONAL/FORMAL
APPROACH
1.1 CDE is a timber business which has three main shareholders each holding 20%
of the share capital each. The remainder of the shares are owned in small
amounts by the general public.
CDE leases several large areas of woodland from the central government of
country Z and employs 2,000 members of staff across the country, mostly on
seasonal contracts or on a freelance basis. CDE supplies over 300 small
businesses with basic wood products across country Z.
Recent performance has been poor and dividend payments have been very
low. The three main shareholders have asked the board of directors to consider
making 200 employees redundant in a bid to cut costs.
Using Mendelow’s matrix, match the most appropriate management
strategy to each of the following stakeholder groups:
Customers Key players
Major shareholders Keep informed
Employees Minimal effort
The Government of Z Keep satisfied
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