ACCA BT · Chapter 2 · Question 3 of 11
A government environmental regulator has significant power over a proposed new chemical plant and has publicly stated it will scrutinise the plans closely. Under Mendelow's matrix, how should the company treat the regulator?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) As a key player whose views must be considered and managed closely
Explanation
The regulator has high power (it can block or condition the project) and has shown high interest by announcing close scrutiny. High power and high interest place it in the key player quadrant, so its views should be actively considered and managed. Keeping it merely satisfied would underestimate its expressed interest.
More Stakeholders and the external environment MCQs
- Q5New legislation imposes binding limits on the carbon emissions that a company's factories may produce, which will require expensive…
- Q6Which of the following is NOT one of Porter's five competitive forces?
- Q7Which of the following is most likely to INCREASE the bargaining power of a company's suppliers?
- Q8A new business wishes to enter an industry where existing firms enjoy large economies of scale, strong brand loyalty and exclusive access…
- Q9In Porter's value chain, which of the following is classified as a primary activity?