Mendelow’s framework on stakeholders’ influence over strategic decisions:

Strategy analysis in a company is the balance of power between the stakeholder groups and the relative power and interest of each group. Mendelow’s framework can be used to understand the influence that each stakeholder group has over a company’s strategies and actions. The key variables in the framework are:
(i) The power stakeholders are capable of exercising.
(ii) The interest that stakeholders have in particular issues. Influence over a strategy or action comes from a combination of power and interest.

Mendelow’s framework is a 2×2 matrix with interest at the horizontal axis and power at the vertical axis. Interest and power are classified as either low or high as shown below:

The framework is explained below:

(i) Minimal Effort (LL): Stakeholders who have little power and low interest in a matter. They have minimal influence, and the company can largely ignore them.
(ii) Key Players (HH): Stakeholders with the highest power and high interest. Their influence is significant in making strategic decisions. The organisation’s strategy must be acceptable to them. Problems arise when there are conflicting interests within this group.
(iii) Keep Informed (LH): Stakeholders with high interest but low power. These stakeholders may try to increase their power by forming coalitions with other stakeholders.
(iv) Keep Satisfied (HL): Stakeholders with high power but low interest. They should be kept satisfied to prevent them from using their power to affect strategic decision-making.