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In my BPP textbook, it has a question regarding categorising board of directors, founding family shareholders, trade union and migrant workers.
I categorised board of directors and the shareholders as high power and interest using Mendlow’s Matrix. But apparently, it should have been low power high interest for the board and high power and low interest for the founding shareholders.
Has anyone else had a go at this/seen this and can offer some advice?
Hi,
I hopethat this is not too late.
The case indicates that the shareholders are currently happy with the level of dividends that they are getting. This therefore implies that they do not have any motivation to get involved with the day-to-day activities of the hotl (low interest). I guess it isobvious that the shareholders possess high power.
Regarding the directors, they have a very high motivation on the operations of the hotel. This is because their bonuses are pegged on high profitability. Consequently, they are likely to have a very keen interest on how the company is run.
I hope the above helps.
All the best to you tomorrow (assuming you’re sitting the exam in December) & to myself as well.
Regards,
Solomon
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