Strategic Case Study Full Tuition - Session 1.pdf

Session 1 - Introduction Strategic Case Study Paper 3.4 (ICAG Level 3) MSL Business School Let’s enter into an agreement My Part (my role to play) 1 Your Part (your role to play) 2 Teamwork - giving you that extra push to cross 50% Who is running this Tuition...

Session 1 - Introduction Strategic Case Study Paper 3.4 (ICAG Level 3) MSL Business School Let’s enter into an agreement My Part (my role to play) 1 Your Part (your role to play) 2 Teamwork - giving you that extra push to cross 50% Who is running this Tuition Program? Qualifications You can visit michaelsiawlarbi.com/awards or michaelsiawlarbi.com/education Who is running this Tuition Program? Experience You can visit michaelsiawlarbi.com/experience  Conceptualising this paper How to Approach the Strategic Case Study paper Application of Knowledge to Pure Knowledge Good Exam Technique Case 40% 35% 25% Introducing the MSL Business School App The ICAG Strategic Case Study (SCS) Syllabus  The Strategic Case Study Paper What is it even about? MSL Business School  The Strategic Case Study exam - Overview The Strategic Case Study exam This exam pulls together everything you have learnt in your studies so far and tests your ability to apply that knowledge to real life situations. The questions within the exam are therefore likely to draw on a number of syllabus areas simultaneously. The key to this exam is gaining an understanding of the concepts (many of which you already know from your studies so far) how they may impact upon each other, and how they relate to real world practices. To do this you need to change your mind set away from looking at individual ‘topics’ and try to develop a more holistic approach in which your knowledge is viewed more as a toolkit to help you approach questions. Developing good commercial acumen and awareness of how businesses and other organisations operate in the real world will be hugely beneficial to you in preparing for this exam. Case studies are inspired by real life events, so it is worthwhile keeping up to date with what is going on in the business world. Reading a good quality newspaper, or its website, on a regular basis would be a very good idea.  The Strategic Case Study exam The Pre-Seen - The what, the why, the how Advance material (also known as the “PRE-SEEN” material) Prior to the case study exam, you will be given advance case study material. You should spend a lot of time making sure you fully understand this information. You should also carry out some preparatory work on this material, for example: What industry does the case relate to? What do you already know about this industry, and what can you find out about it? Is it regulated in any way? Does it face any particular challenges etc? Is the industry growing, or is it in decline – use both the information you are given in the case as well as your own business acumen to build up a picture of the way this industry works. Researching real life situations in this industry can help you to come up with ideas that you can draw on when answering questions in the exam. What are you told about the organisation itself? How big is it, and how is it structured? Is it a family business for example, and is it well established or a newly formed organisation? Is it growing or is the market beginning to decline? Is it a single organisation, or a group with subsidiaries? How is it structured? These factors will affect culture – for example the culture of a family business can be well rooted and difficult to change. How is it governed, and what problems might this cause, and so on.  The Strategic Case Study exam The Pre-Seen - The what, the why, the how Advance material (also known as the “PRE-SEEN” material) Who are the stakeholders in this organisation? What is their relationship to the company and where do their interests lie? How much power do they have over the decisions made by the company in general? How does the company create value for its customers? What processes does it use? Is it efficient, or can you see weaknesses within the value chain; if so can you see how they could be improved? How about the value system? What links does it have with its suppliers? And who are the customers or service users of the organisation? Carry out an internal appraisal of the organisation and determine its key strengths and weaknesses. How about the environment the organisation operates in? What information are you given in relation to competitors, resources and supporting industries? Use this information to prepare a PESTEL analysis and Five Forces analysis to gain a stronger understanding of the environment.  The Strategic Case Study exam The Pre-Seen - The what, the why, the how Advance material (also known as the “PRE-SEEN” material) Combine the results of the internal and environmental appraisals to determine a SWOT analysis. Look closely at this to see where strengths could be used to take advantage of opportunities, or to overcome a threat and so on. This will save you time if you are asked to produce any of this analysis in the exam (although remember to update any analysis in light of the material you receive in the exam itself). Even if you are not specifically asked for this analysis in the exam, the preparatory work is likely to give you knowledge and insights into the company which will help you answer other questions and enrich your answers. Depending on the information you are given, there is likely to be other work you can carry out in advance of the exam. Try to tailor this to the situation you are given and think about the types of questions you may be expected to face. For example, is the organisation planning to launch in a new market abroad? If so, thinking about Porter’s Diamond would be sensible. Gaining an understanding of the underlying purpose of models and tools during your revision will help you to be able to anticipate which ones will be helpful to you in different situations. The more question practice you can carry out in advance, the easier this will become. The information in this advance material is likely to provide the backdrop to the case study questions. It will allow you to establish a picture of the organisation and its environment, draw some conclusions about the performance of the organisation, and understand the general context in which the questions will be set.  The Strategic Case Study exam How about the Unseen? - On exam day Unseen case study material During the exam, you will receive additional unseen information. This is more likely to deal with specific issues, plans, changes, decisions, opportunities or challenges that the company is currently facing. The questions will generally relate more directly to this information, for example you could be told in the unseen material that the organisation is considering acquiring another company and asked to evaluate the proposal. However, as well as using the information given about the proposal in the unseen information, you would also enrich your answer with the knowledge gained from your preparatory work based on the advance material. Remember that you may need to amend some of your conclusions and findings from the advance material in light of the new information. There may be new opportunities to consider for example, or there may have been a fundamental change in the market.  The Strategic Case Study exam Approaching the exam - how should I strategise? Approaching the exam Reading the new material carefully is important. Spend some time considering how this affects the opinions you have already formed about the company. Does it support what you know, and how does it change things? This is particularly important if you have prepared some work in advance. Note: Take care to review this rather than simply reproducing this in the exam without considering any new information you have been given. There are several techniques that you can use to help you develop your points. Ask yourself ‘so what?’ for any point that you make. Why is this point significant? Why does it matter? What will happen as a result of this issue? Explaining why a point is important helps you to better understand and communicate the issues and clearly explain the consequences. Give evidence and examples. You can find this by asking yourself how you know that something is happening. What has prompted you to raise the issue? Don’t expect the marker to know why you are making a point; use specific information and examples from the case study material to demonstrate the point.  The Strategic Case Study exam Approaching the exam - how should I strategise? Approaching the exam Look for linkages. Is a point that you have raised happening due to something else that has arisen in the case study? Or is it causing another problem to arise? Linking points together shows good commercial sense, strong analytical skills and the ability to communicate your findings well. Propose solutions. Can you see a way that a problem you have raised can be solved? Developing your points to include potential solutions can increase the marks you earn. Introduction to Strategy MSL Business School  Definition of Strategy Chandler (1962) defined strategy as ‘the determination of the basic long-term goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.’ Strategic management therefore involves deciding answers to questions such as: What business or businesses should we be in? How can this business activity contribute to the competitive advantage of our enterprise? Drucker defined strategy as ‘a pattern of activities that seeks to achieve the objectives of the organisation and adapt its scope, resources and operations to environmental changes in the long term.’ This definition is a bit more complex than the previous one. It contains several elements: A strategy consists of organised activities The purpose of these activities (the strategy) is to achieve an objective Strategy is long-term. Formal strategic planning by large companies, for example, might cover five years or ten years into the future, and for some companies even longer. The strategic choices that an enterprise makes are strongly influenced by the environment in which the enterprise exists.  Definition of Strategy The environment is continually changing, which means that strategies cannot be rigid and unchanging. Strategies involve an enterprise in doing different things with different resources over time, as it is forced to adapt to changes in its environment. Johnson, Scholes and Whittington (‘Exploring Corporate Strategy’) have defined strategy as ‘the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. This definition has some similarities to the definition by Drucker, but it contains two other aspects of strategic management: An enterprise should use its resources and its skills and abilities to achieve a ‘competitive advantage’ in its business activities. Competitive advantage is achieved by doing something better (and more successfully) than competitors can do. It is often assumed that the main objective of a company should be to maximise the wealth of its shareholders. Johnson, Scholes and Whittington state that the objective of an entity should be to fulfil ‘stakeholder’ expectations.  Definition of Strategy Johnson, Scholes and Whittington identified the range or scope of strategic decisions as follows: Deciding the scope of the entity’s activities. What businesses should we be in? Relating the activities of the entity to the environment in which it operates. Ensuring that the entity has the ‘resource capability’ to operate in its selected areas of activity. This means making sure that the entity has enough employees with the right skills, access to sufficient raw materials and other supplies, enough equipment, suitable IT systems, and so on. Allocating resources to the different business activities. Providing a high-level (strategic) framework for more detailed decision-making at an operational level. Reflecting the values and expectations of the individuals in positions of power within the entity. Deciding the long-term direction that the entity should take. In many cases, implementing change within the entity so that it adapts successfully to its changing environment.  What is Strategic Management? Strategic management is concerned with the identification, selection and implementation of strategies for achieving an organisation’s long-term goals and objectives. It sets the direction for an organisation and is concerned with how to get there and obtain optimal results. Strategic management is important because it creates a framework for achieving long-term success for the organisation, and does not focus on the bottom line and short-term profitability. Strategic management is not the same as strategic planning, long-term planning and corporate planning.  What is Strategic Planning? Strategic planning is a process of formulating the long-term direction for an organisation, and preparing a plan of how to achieve the strategic targets that are set. It is a process of making optimal decisions for the long-term benefit of the company. Strategic management often includes strategic planning, but it is concerned with the implementation of strategies and monitoring their success. So whereas strategic planning is concerned with making optimal planning decisions for long-term success, strategic management is concerned with achieving optimal success from the implementation of strategies. Strategic management does not necessarily need a strategic planning element.  Defining Long Term Planning and Corporate Planning Long-term planning, like strategic planning, is concerned with making plans for the long-term success of the organisation. However long-term planning may be for an individual department or function, whereas strategic management is concerned with strategy for the organisation as a whole. Long-term planning does not necessarily have a strategic purpose: for example capital expenditure planning may be long-term planning, but is not necessarily an element of an organisation’s strategy. Corporate planning is planning for an entire company, but is at a level below strategic planning and strategic management, and can be much shorter-term in outlook. For example, a company’s strategy might be to expand operations into a new geographical region and market; whereas a part of the corporate plan might be to establish a new production facility in that region. Levels of Strategy MSL Business School  Levels of Strategy Johnson, Scholes and Whittington identify three levels of strategy: corporate strategy business strategy, and functional strategy.  Levels of Strategy Johnson, Scholes and Whittington identify three levels of strategy: corporate strategy business strategy, and functional strategy.  Levels of Strategy - Corporate Strategy The elements of corporate strategy are as follows: Deciding the purpose of the entity. Why is the entity in existence? What is its mission and what is it trying to achieve? Different people (stakeholders) have different ideas about what the purpose of an entity should be. Deciding the scope of the activities of the entity. Corporate strategy also involves deciding what businesses the entity should be in, including the range of businesses. Matching the chosen business activities to the external environment of the entity and also to its available resources. Matching the purpose and activities of the organisation to the expectations of its owners. The chosen corporate strategy, when put into action, should be capable of meeting the expectations of the owners of the entity. Matching the purpose and activities of the organisation to the expectations of other stakeholders in the organisation.  Levels of Strategy - Corporate Strategy The corporate strategy of an organisation will be influenced by the expectations of its owners and other stakeholders. Owners’ expectations. In a commercial company, the owners are the shareholders. These might expect the company to provide them over time with investment income or with growth in their wealth. Corporate strategy might therefore aim towards maximisation of the shareholders’ wealth. Objectives for corporate strategy might therefore be stated in terms of raising the share price by x% over the next five or ten years. With a state- owned organisation, the owner is the government. The expectations of a government as owner of an entity are different from those of the shareholders in a company. The ‘corporate’ strategy of a state-owned enterprise will therefore differ from the corporate strategy of a company. Stakeholders’ expectations. The term ‘stakeholder’ means any individual or group of individuals who have a strong interest (a ‘stake’) in the organisation and what it does. The chosen corporate strategy should also recognise the rights and expectations of other stakeholders, such as employees, customers, government, suppliers, lenders, local communities and the general public.  Levels of Strategy - Business Strategy Business strategy, also called competitive strategy, is concerned with how each business activity within the entity contributes towards the achievement of the corporate strategy. A large group of companies might consist of many subsidiary companies. Subsidiaries might be organised into strategic business units (SBUs) or operational divisions. Each SBU is a different business, and should have its own business strategy. In a commercial entity, business strategy focuses on markets and business strategy is concerned with how to compete successfully in the chosen markets with the chosen products. According to Porter, a successful competitive strategy must be based on either: cost leadership, or differentiation. Cost leadership means becoming the lowest-cost producer in the market. A company that can make products or provide services at a lower cost than competitors will succeed, by selling at lower prices and winning the biggest share of the market. Differentiation means making products or services that are considered by customers to be different from those of competitors, and because they are different they are better. A company that is not the least-cost producer can therefore succeed by offering product or service that customers will pay a higher price (than the least-cost producer’s price) to obtain.  Levels of Strategy - Functional Strategy Functional strategy relates to particular functions within an organisation, such as manufacturing, distribution, marketing and selling, research and development, finance, IT and so on. The purpose of functional strategy should be to support the business strategies and corporate strategy of the organisation.  Introduction to Planning & the Elements of Strategic Management MSL Business School  Levels of (Organisational) Planning R. N. Anthony R. N. Anthony identified three levels of planning within an organisation: Strategic planning. This involves identifying the objectives of the entity, and plans for achieving those objectives, mostly over the longer term. Strategic plans include corporate strategy plans, business strategy plans and functional strategy plans. Tactical planning. These are shorter-term plans for achieving medium- term objectives. An example of tactical planning is the annual budget. Budgets and other tactical plans can be seen as steps towards the achievement of longer-term strategic objectives. Operational planning. This is detailed planning of activities, often at a supervisor level or junior management level, for the achievement of short- term goals and targets. For example, a supervisor might divide the workload between several employees in order to complete all the work before the end of the day.  Strategic Planning Approaches - R. N. Anthony 1. Rational planning model. The rational model of strategic planning is a ‘top-down’ and formal approach to strategic planning. A formal strategic plan is prepared at a senior management level, covering a period of perhaps five or ten years. It is called a rational model because it is a logical planning and management process, that goes through the stages of: Position analysis Making strategic choices from the options available Implementation of the chosen strategies Evaluation of strategic performance The strategic plan is reviewed periodically, and a new strategic plan is prepared when the ‘old’ plan reaches the end of the period it covers. 2. Logical incremental model. This view of strategic planning is that effective strategies emerge as a series of strategies for ‘sub-systems’ within the organisation, one at a time and not as part of an overall coordinated plan. New strategies are therefore devised and implemented in increments. However, it is a logical or rational process, because each incremental change in strategy emerges as a result of position analysis, strategic choice, implementation and review. 3. Freewheeling opportunism model. A freewheeling opportunism approach to strategic decision-making is that there is no requirement at all for formal strategic planning. An organisation should be open to seeing new opportunities whenever they arise, and exploiting them. The organisation may have a general idea of the direction it is taking, but it cannot and should not plan in advance what to do.  Elements of Strategic Management Johnson, Scholes and Whittington state that strategic management consists of three elements: Strategic position Strategic choices Strategy into action Elements of Strategic Management Strategic position, Strategic choice, Strategy into action MSL Business School  Elements of Strategic Management 1. Strategic Position Strategic position ‘Strategic position’ means making an analysis or assessment of the strategic position of the entity. The senior management of a company, for example, needs to understand the position of the company in its markets: in what ways does the company perform better than its competitors, and in what ways are competitors more successful? In other words, how do rival companies compare with each other in terms of ‘competitive advantage’? Johnson, Scholes and Whittington suggest that there are three aspects to strategic position: The environment Strategic capability of the entity Expectations and purposes. 1. Environment (threats and opportunities) An analysis of the business environment involves an analysis of the threats and opportunities that seem to exist, and an assessment of their significance. Threats are developments in the environment that could threaten the ability of the entity to achieve its objectives. Opportunities are developments that might be exploited, to improve the ability of the entity to achieve its objectives.  Elements of Strategic Management 1. Strategic Position 2. Strategic capability of the entity (strengths and weaknesses) The management of an entity should also make an assessment of the strategic capability of the entity. This means reaching an understanding of what the entity is capable of achieving. An assessment of strategic capability involves an analysis of the strengths and weaknesses of the entity. What is the entity good at doing? Why? What can be done to improve these strengths? What is the entity bad at doing that its rivals can do better? Why? What can be done to reduce or eliminate these weaknesses? 3. Expectations and purposes An analysis of strategic position also requires management to make decisions about the purpose of the entity and what it is trying to achieve. Some entities make a formal statement of their purpose and reason for existence in the form of a mission statement. A company might consider that its purpose is to provide returns to its owners, the shareholders. It might therefore state its purpose in terms of maximising shareholder wealth, or increasing shareholder wealth. A company might consider that its purpose is to increase shareholder wealth but that it also has a significant responsibility to other stakeholder groups, such as employees and customers.  Elements of Strategic Management 2. Strategic Choices This involves identifying different possible strategies that the entity might adopt, and making a choice of the preferred strategies from the different alternatives that are available. There are three aspects to identifying alternative strategies and making strategic choices: Corporate level and international Business level strategies Development directions and methods 1. Corporate level and international Strategic choices have to be made at the corporate strategy level. In particular, decisions have to be made about what the entity should be doing. For companies, this means making decisions about which products or services it should be selling, and what markets it should be selling them in. There could also be an international aspect to strategic choices at this level. A company needs to decide whether it will operate internationally, and if so in what countries. 2. Business level strategies Choices must also be made at the business strategy level. For companies, a major strategic choice is between a strategy of cost leadership and a strategy of differentiation. If a company chooses a strategy of differentiation, it has to decide how it intends to make its products or services different from those of its competitors, so that the company will have a competitive advantage over rival companies and can succeed with its chosen strategy.  Elements of Strategic Management 2. Strategic Choices 3. Development directions and methods A choice must be made about the direction or directions in which the business should be directed. If a company’s management decide on a strategy of growth, and making the business bigger, decisions have to be made about how the company will grow. Will it have a strategy of internal growth, and developing the business gradually using the company’s own internal resources? Or will it seek to grow by making acquisitions of other companies? Or will it seek to grow by making strategic alliances with other companies, so that all the companies in the alliance help each other to grow their businesses? Senior management must also make strategic choices about its products and markets. One method of analysis (by Ansoff) is that companies can seek to grow in any of four ways: market penetration: this is a strategy of trying to increase market share, by selling more of the company’s existing products in its existing markets market development: this is a strategy of growth by selling the company’s existing products to new markets, such as markets in other countries product development: this is a growth strategy that involves developing new products or services to sell to the company’s existing markets diversification: this is a higher risk strategy, which involves selling new products or services to new markets.  Elements of Strategic Management 3. Strategy into Action Strategy into action The third element in the Johnson, Scholes and Whittington model of strategic management is ‘strategy into action’. This means implementing the chosen strategies. There are three aspects to strategy implementation: Organising Enabling Managing change Organising An organisation structure must be established that will help the entity to implement its strategies effectively in order to achieve its strategic targets. ‘Organising’ means putting into place a management structure and delegating authority. Individuals should be made responsible and accountable for different aspects of the chosen strategies. Decision-making processes must be established.  Elements of Strategic Management 3. Strategy into Action Enabling ‘Enabling’ means enabling the entity to achieve success through the effective use of its resources. Each resource must be used to support the achievement of strategic objectives. This calls for efficient management of resources such as people (and labour skills), information, finance and technology. Strategies should be based on making full use of the resource strengths of the entity, to achieve competitive advantage. Managing change Most entities exist in a rapidly-changing environment and they need to adapt and change in order to survive and succeed. Implementing strategy always means having to make changes. Managing change successfully is therefore an important aspect of strategic management. Business Analysis  Organisational Strategy & Purpose MSL Business School A hierarchy of objectives and plans  Organisational Mission A mission is the purpose of an organisation and the reason for its existence. Many entities give a formal expression to their mission in a mission statement. ‘A mission describes the organisation’s basic function in society, in terms of the products and services it produces for its customers’ (Mintzberg). The mission defines the present state or purpose of an organisation. A mission statement should be a clear and short statement. Drucker suggested that it should answer the following fundamental questions: What is our business? What is our value to the customer? What will our business be? What should our business be? Some entities include a statement about the role of their employees in their mission statement, or include a statement on the ethics of the entity.  Organisational Mission The World Bank ‘Our dream is a world free of poverty To fight poverty with passion and professionalism for lasting results. To help poor people help themselves and their environment, by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors. To be an excellent institution able to attract, excite and nurture diverse and committed staff with exceptional skills who know how to listen and learn.’ Pfizer Corporation (pharmaceuticals) ‘Our mission. We will become the world’s most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live. Our purpose. We dedicate ourselves to humanity’s quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer and animal health products.’  Organisational Vision Whilst a mission statement defines the present state or purpose of an organisation a vision statement represents a desired optimal future state of what the organisation wants to achieve over time. For example: Microsoft: “Empower people through great software anytime, anyplace, and on any device” Avon: “To be the company that best understands and satisfies the product, service and self-fulfilment needs of women – globally”  Organisational Goals & Objectives Goals are aims for the entity to achieve, expressed in narrative terms. They are broad intentions. For example, an entity might have the goal of maximising the wealth of its shareholders, or the goal of being the world’s leading business entity in one or more markets. Objectives are derived from the goals of an entity, and are aims expressed in a form that can be measured, and there should be a specific time by which the objectives should be achieved. The objectives specified by the strategic planners should be SMART: Specific/stated clearly Measurable Agreed Realistic Time-bound (a time must be set for the achievement of the objective). Stakeholders & Stakeholder Expectations MSL Business School  Who are Stakeholders? The stakeholders in an entity are any individuals, groups of individuals or external organisations that have an interest (a ‘stake’) in what the entity does or is trying to achieve. Some stakeholders have much more influence than others over the strategic decision-making of an entity, and the identity of the main stakeholders varies between different entities. The stakeholders or stakeholder groups for a business entity usually include most of the following: the ordinary shareholders the controlling shareholder, if there is one other classes of shareholders bondholders the investment community lenders suppliers, especially major suppliers customers the directors other senior executive managers other managers and employees, or groups of employees the government (local, state or federal government) pressure groups, such as environmental protection groups and human rights groups local communities in which the entity operates the general public.  Stakeholder Expectations Each stakeholder or stakeholder group has different expectations from a company. They expect to benefit from their association with the company, and the benefits they expect are different. According to the traditional view of corporate governance, the main stakeholders are the shareholders of the company, its board of directors and probably also its senior managers. These stakeholder groups have different rights and duties, and they also have different expectations of what the company should provide for them. When these stakeholders have some power, they can influence the strategic decisions of a company.  Stakeholder Mapping A business entity should manage its stakeholders, particularly those with the greatest influence. As a part of a review of the strategic position of a company, management should identify its major stakeholder groups, their power and their expectations. One way of presenting the results of a stakeholder assessment is to prepare a ‘stakeholder map’. This is a simple diagram showing the main stakeholders or stakeholder groups, and their relative significance. The purpose of stakeholder mapping is to assist the directors of a company (or the governors of a public sector entity) to obtain an appreciation of who the main stakeholder groups are, and what their real and potential influences are over the entity and the entity’s strategies. One approach to stakeholder mapping is to show the relative significance of stakeholder groups using a 2 × 2 matrix. There are a number of different stakeholder maps. Two matrices are: the stakeholder position/importance matrix the stakeholder power/interest matrix (Mendelow Matrix).  Stakeholder Mapping 1. Stakeholder position/importance matrix This matrix compares: the position of the stakeholders on a particular issue, on a scale ranging from ‘strong opposition’ (-5) to ‘strong support’ (+5), and the relative importance of the stakeholders, on a scale from ‘not important’ (–5) to ‘very important’ (+5).  Stakeholder Mapping 1. Stakeholder position/importance matrix In the matrix shown on the previous page, the main concern should be to deal with important stakeholders who are strongly opposed to proposed plans of the board of directors and are ‘antagonistic’. These would be shown in the top right hand corner of the matrix. The directors should consider what measures should be taken to try to reduce the opposition of these stakeholders. Their decision will be influenced by what the consequences for the company might be if the stakeholders remain antagonistic. The solution might be to find a compromise solution, which reduces their opposition. Management should also try to win support from the ‘problematic’ stakeholders, although their opposition is relatively unimportant. They should also try to maintain the goodwill of ‘supporters’ – important stakeholders who support their plans.  Stakeholder Mapping 2. Mendelow’s stakeholder power/interest matrix This matrix compares: the amount of interest of the stakeholders on a particular issue, on a scale ranging from ‘not at all interested’ (0) to ‘very interested’ (+10), and the relative power of the stakeholders, on a scale from ‘very weak’ (0) to ‘very powerful’ (+10).