Chapter 5 – Doctor Accounting
- June 21, 2019
- Posted by: SAA-GE Marcomms
- Category: Doctor Accounting
Do you know the stakeholders mapping model is also known as the “Mendelow’s Matrix”?
Watch Dr Accounting chapter 5 to learn more about the world of Accounting with us!
Welcome to chapter 5 of Doctor Accounting. In my chapter four, I’ve shared with you on stakeholders mapping model.
So the stakeholders mapping model is also known as Mendelow’s Matrix. This Mendelow matrix is very useful model for companies to identify the key stakeholders.
I just want to run through the model with you. For instance, the model looks at the Level of Interest as well as the Level of Power of stakeholders. As companies have many stakeholders, it is very important for the company to identify who are the key stakeholders.
For instance, if the Interest is Low and the Power is Low, it is a Minimum Impact. So you need not have to worry about these stakeholders.
On the other hand, if the Level of Interest is High and the Level of Power is Low, you have to keep such as stakeholders informed. And we spoke about many companies right, the key stakeholders will be the shareholders. That depends on the nature of business and the type of industry the company is.
For instance, if the Level of Interest is High and the Level of Power is High, this is by defined as the Key Stakeholders. You have to keep these stakeholders participate in your strategic decision in order to be aligned.
In this way, they will be happy to work together with the companies. If I take this illustration as the key stakeholders as the shareholders, of the company. They want to be kept updated and also informed of what is going on in the organization.
I mentioned about Financial Reporting Standards. International Financial Reporting Standards. I’m going to share with you in my chapter 6.