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Student's Book Form Five

Stakeholders’ matrix Level of interest axis: This axis represents
For effective stakeholders’ engagement and the extent to which stakeholders are
management, it is crucial to understand affected by or interested in the business.
stakeholder’s matrix. The stakeholder Stakeholders with high interest are those
matrix, also known as the stakeholder with a significant stake in the project’s
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analysis matrix or stakeholder mapping. success or failure and are likely to be directly
This is a tool used by businesses and impacted by its outcomes. Conversely,
organisations to identify, analyse, and stakeholders with low interest may have
prioritize stakeholders according to their minimal involvement or be indirectly
level of interest and power in a business. affected by the business.
The matrix helps businesses to understand Power or influence axis: This axis represents
stakeholders’ roles, expectations, and the degree of power that stakeholders
relationships with the business which allows have over the business. Stakeholders with
effective communication, engagement, and high influence are those who possess the
management of stakeholder relationships. authority, resources, or decision-making

The matrix typically comprises of a grid power to shape the business’s direction,
with two axes: the level of “Interest” axis outcomes, or implementation. Stakeholders
and the “Power” axis. Each stakeholder is with low influence have limited ability to
plotted on the matrix based on their level directly impact the business’s outcomes.
of interest in the business and their level Based on their placement on the matrix,
of power over its outcomes. stakeholders can be categorised into four
main quadrants as shown in Figure 1.3.

Source: Adapted from Mendelow, 1991
Figure 1.3: Stakeholders matrix

Business Studies for Advanced Secondary Schools 10

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