MAC4863
Assignment 2 2025
Unique #:711192
Due Date: 27 May 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
1.1.
Using Mendelow’s matrix, evaluate the levels of power and interest of Aero’s
shareholders in the decision to sell alcohol and tobacco.
Mendelow’s matrix is a tool used to map stakeholders based on their power to
influence an organisation and their interest in a particular decision. Below is an
evaluation of the key shareholders of Aero Ltd based on this framework:
1. Aero Ltd Charitable Trust
Interest: High – Their mission is to use returns for community benefit and
uphold ethical practices. Selling alcohol and tobacco directly contradicts their
values.
Power: Medium to High – While they own only 10% of the shares, their moral
influence and possible public voice could attract media or community support.
Matrix Position: Key stakeholder
Strategy: Engage and negotiate.
2. Aero Ltd Employees (10%) and Directors (2%)
Interest: Medium to High – Employees may be indifferent or in favour due to
job stability or increased bonuses from profits. Directors are directly involved
in strategic decisions.
Power: Medium – Directors have formal authority. Employees have low
formal power but can affect operations and public image through strikes or
leaks.
Matrix Position: Keep informed / Satisfy
Strategy: Inform and consult regularly.
3. Pension Funds (15%) and Investment Trusts (15%)
Interest: Medium – These investors are focused on long-term returns. Ethics
may matter, but profit is the main concern.
Power: High – They collectively hold 30% of the shares and may vote against
management decisions if returns are threatened.
Matrix Position: Satisfy
Strategy: Engage and provide risk-reward justification.
4. Private Equity Fund (25%)
Varsity Cube 2025 +27 81 278 3372
Assignment 2 2025
Unique #:711192
Due Date: 27 May 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
1.1.
Using Mendelow’s matrix, evaluate the levels of power and interest of Aero’s
shareholders in the decision to sell alcohol and tobacco.
Mendelow’s matrix is a tool used to map stakeholders based on their power to
influence an organisation and their interest in a particular decision. Below is an
evaluation of the key shareholders of Aero Ltd based on this framework:
1. Aero Ltd Charitable Trust
Interest: High – Their mission is to use returns for community benefit and
uphold ethical practices. Selling alcohol and tobacco directly contradicts their
values.
Power: Medium to High – While they own only 10% of the shares, their moral
influence and possible public voice could attract media or community support.
Matrix Position: Key stakeholder
Strategy: Engage and negotiate.
2. Aero Ltd Employees (10%) and Directors (2%)
Interest: Medium to High – Employees may be indifferent or in favour due to
job stability or increased bonuses from profits. Directors are directly involved
in strategic decisions.
Power: Medium – Directors have formal authority. Employees have low
formal power but can affect operations and public image through strikes or
leaks.
Matrix Position: Keep informed / Satisfy
Strategy: Inform and consult regularly.
3. Pension Funds (15%) and Investment Trusts (15%)
Interest: Medium – These investors are focused on long-term returns. Ethics
may matter, but profit is the main concern.
Power: High – They collectively hold 30% of the shares and may vote against
management decisions if returns are threatened.
Matrix Position: Satisfy
Strategy: Engage and provide risk-reward justification.
4. Private Equity Fund (25%)
Varsity Cube 2025 +27 81 278 3372
