,Question 1 (25 marks) (This question comes from the Jan/Feb 2025
supplementary exam)
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. You must
justify your evaluations. (15 marks)
Aero Charitable Trust - High Power, High Interest; (10%)
Other shareholders - High Power, Low Interest;
Customers - Low Power, High Interest;
Employees - Low Power, Low Interest. (10%)
Mendelow’s Matrix provides a structured approach to assess the influence and
concern of various shareholders regarding Aero Ltd's decision to sell alcohol and
tobacco products. As a management accountant, evaluating stakeholders' power
and interest is crucial in strategic decision-making.
The Aero Charitable Trust
High Power, High Interest: falls into this category. As a significant shareholder,
they have both the power to influence decisions and a vested interest in maintaining
, the company's ethical standards. Their opposition to the sale of alcohol and tobacco
reflects their commitment to Aero's original mission.
Other major shareholders:
High Power, Low Interest: such as institutional investors, may fall into this
category. While they have the power to affect decisions through voting rights, they
may not be as interested in the ethical implications of selling these products,
focusing instead on profitability.
Customers
Low Power, High Interest: who frequent Aero's stores, especially during late
hours, are likely to be in this quadrant. They have a strong interest in the availability
of alcohol and tobacco but lack the power to influence corporate decisions directly.
Employees at Aero
Low Power, Low Interest: may fit into this category. While they may have an
interest in the company's performance and ethical stance, their individual power to
influence the decision is limited.
In summary, the Aero Charitable Trust holds significant power and interest,
making them a key stakeholder in this decision. Other shareholders may have
supplementary exam)
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. You must
justify your evaluations. (15 marks)
Aero Charitable Trust - High Power, High Interest; (10%)
Other shareholders - High Power, Low Interest;
Customers - Low Power, High Interest;
Employees - Low Power, Low Interest. (10%)
Mendelow’s Matrix provides a structured approach to assess the influence and
concern of various shareholders regarding Aero Ltd's decision to sell alcohol and
tobacco products. As a management accountant, evaluating stakeholders' power
and interest is crucial in strategic decision-making.
The Aero Charitable Trust
High Power, High Interest: falls into this category. As a significant shareholder,
they have both the power to influence decisions and a vested interest in maintaining
, the company's ethical standards. Their opposition to the sale of alcohol and tobacco
reflects their commitment to Aero's original mission.
Other major shareholders:
High Power, Low Interest: such as institutional investors, may fall into this
category. While they have the power to affect decisions through voting rights, they
may not be as interested in the ethical implications of selling these products,
focusing instead on profitability.
Customers
Low Power, High Interest: who frequent Aero's stores, especially during late
hours, are likely to be in this quadrant. They have a strong interest in the availability
of alcohol and tobacco but lack the power to influence corporate decisions directly.
Employees at Aero
Low Power, Low Interest: may fit into this category. While they may have an
interest in the company's performance and ethical stance, their individual power to
influence the decision is limited.
In summary, the Aero Charitable Trust holds significant power and interest,
making them a key stakeholder in this decision. Other shareholders may have
