QCE Business - Unit 3 - Business skills and tools
Power Interest Grid Stakeholder Analysis | QCE Business
Learn how to identify, plot and explain stakeholders in a power interest grid for QCE Business decisions and expansion strategies.
Updated 2026-05-18 - 6 min read
QCAA official coverage - Business 2025 v1.3
Exact syllabus points covered
- Use analytical tools in business contexts, including power interest grid.
- Analyse financing options and income streams using a power interest grid.
- Analyse business data and information to identify relationships and interrelationships in business situations.
- Evaluate business strategies using business criteria to make decisions and recommendations.
A power interest grid maps stakeholders according to how much power they have and how interested they are in a strategy. It helps a business decide who needs close management, who needs information, who needs satisfaction and who only needs monitoring. This is especially useful for expansion, financing, sustainability, repositioning and transformation decisions because those decisions affect different stakeholder groups unevenly.
Original Sylligence diagram for business power interest grid example.
Step 1: identify stakeholders
Start by listing stakeholders connected to the decision. Stakeholders are groups or individuals that can affect, or are affected by, the business. Common Business examples include owners, directors, managers, employees, customers, suppliers, lenders, investors, unions, government agencies, regulators, local communities, environmental groups, competitors and media organisations.
For a strategy to replace a delivery fleet with electric vehicles, stakeholders might include the chief executive, sustainability manager, delivery drivers, finance manager, customers, charging-station providers, petrol suppliers, environmental groups, local councils and shareholders.
Step 2: judge power
Power is the stakeholder's ability to influence the decision or its outcome. A chief executive has high power because they can approve resources. A lender may have high power if finance is required. A government agency may have high power if compliance approval is needed. A large customer can have high power if losing them would damage revenue.
Power does not always mean authority inside the business. A community group can have power if it can shape public opinion. A supplier can have power if alternatives are limited. Employees can have power if their cooperation is essential to implementation.
Step 3: judge interest
Interest is how much the stakeholder cares about the decision. Employees may have high interest if roles, workload or job security change. Customers may have high interest if price, service or product availability changes. A regulator may have high power but low interest if the business is compliant and the project is routine.
Interest can change. A stakeholder that was passive may become highly interested if a decision creates public controversy, delays, safety concerns or cost increases.
Step 4: plot and manage
| Quadrant | Meaning | Management strategy | |---|---|---| | High power, high interest | Can strongly influence the decision and cares about it | Manage closely through consultation, updates and negotiation | | High power, low interest | Can influence the decision but is not highly involved | Keep satisfied with concise, relevant information | | Low power, high interest | Cares strongly but has limited influence | Keep informed and provide channels for feedback | | Low power, low interest | Limited influence and limited concern | Monitor for changes |
The strategy should match the quadrant. Managing everyone closely is inefficient. Ignoring high-interest stakeholders can damage trust. The grid helps prioritise communication effort.
Worked example: electric delivery fleet
A mature grocery delivery business is considering replacing 40 petrol vans with electric vehicles.
| Stakeholder | Likely power | Likely interest | Placement | Reason | |---|---|---|---|---| | CEO | High | High | Manage closely | Approves strategy and is accountable for outcomes | | Finance manager | High | High | Manage closely | Controls budget, cash flow and finance risk | | Delivery drivers | Medium | High | Keep informed or manage closely | Work practices, training and route planning change | | Charging provider | Medium | High | Keep informed | Implementation depends on charging access | | Petrol supplier | Low | High | Keep informed | Loses contract value but may have limited influence | | Customers | Medium | Medium to high | Keep informed | May value sustainability but care about delivery reliability | | Environmental group | Low to medium | High | Keep informed | Can influence reputation if claims are weak | | Local council | High | Low to medium | Keep satisfied | May influence permits or charging infrastructure |
The grid suggests the CEO and finance manager need close management because they control approval and funding. Drivers need active communication and training because implementation depends on their cooperation. Customers should be informed about sustainability benefits without overpromising if delivery reliability is uncertain.
Explaining movement between quadrants
Stakeholders can move. If charging stations fail during a trial, customers may become more interested because delivery times are affected. If the government announces an electric vehicle subsidy, the finance manager's support may increase. If employees are not consulted, their interest and resistance can rise. A strong response can mention that the grid is a snapshot, not a permanent truth.
Linking to evaluation criteria
Power interest grids connect strongly to stakeholder satisfaction. They also affect effectiveness and efficiency. A strategy may be technically sound but ineffective if high-power stakeholders block it. A communication plan may be efficient if it gives detailed consultation only to the stakeholders who need it. Competitiveness may improve if stakeholder support allows a business to implement faster than rivals.
Using the grid in writing
Do not simply write "employees are low power and high interest". Explain why. For example: "Delivery drivers have high interest because the electric fleet changes training, route planning and charging routines. They have moderate power because poor adoption could reduce service reliability. The business should keep drivers informed and involve them in the trial to improve stakeholder satisfaction and effectiveness."