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Goaway Hotels Question

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Goaway Hotels Question

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?

November 20th 2018 AN ACCA USER

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The answer has to be considered in the context of the specific decision - here it is whether the employment terms should be changed. Clearly the board has high interest as it "has been considering imposing tougher employment contracts" however, as the answer explains, their power to change the terms is low because new labour legislation "prevents companies from imposing less favourable employment terms". Basically, you have to put aside any preconceptions about the board's interest/power and assess it in the context of the given scenario.

November 21st 2018 AN ACCA USER
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