Internal Memorandum
To: Management of SavvyTech Plc
From: Independent Consultant
Date: 7th July 2023
Subject: Explanation of Stakeholder Position/Importance Matrix to Guide Engagement

The stakeholder position/importance matrix is a useful tool for assessing how different stakeholder groups are likely to react to the proposal of withholding the 2022 dividend payout and using the funds to acquire the subsidiary in Utopia. The matrix compares two dimensions:

1. Position on the issue: ranging from strong opposition (+5) to strong support (-5).
2. Importance to the organization: ranging from not important (-5) to very important (+5).

Application to SavvyTech plc:

• Antagonistic Stakeholders (e.g., production staff with 48% ownership): These stakeholders are likely to oppose the withholding of dividends due to concerns over job security and potential outsourcing. Their high importance places them in the top-right quadrant of the matrix, requiring careful management and engagement.
• Supportive Stakeholders: Other stakeholders, such as the Board or external partners, who may support the strategic acquisition, would appear in the bottom-right quadrant. The goal is to maintain their support while balancing other interests.
• Problematic Stakeholders: These stakeholders have little influence but may cause minor opposition. The focus should be on minimizing their concerns.

Diagram:
The matrix below categorizes stakeholders according to their position and importance:

Recommendations:

• The management should focus on engaging the production staff, offering clear communication and compromises to avoid losing their trust.
• Engage other important stakeholders who support the acquisition and ensure their continued alignment with SavvyTech’s strategy.

Yours faithfully,
Consultant