What does a case study question look like?
Agata Paluch, Kwirtmak's Finance Director, stops by your office and gives you a document:
“Following Board approval, Kwirtmak has now completed the acquisition of the Advanced Materials Facility in Xland. This is a major step in building our capabilities in carbon fibre and other advanced materials. However, the Board is increasingly concerned about the risks associated with operating in Xland, particularly given recent cybersecurity incidents affecting industrial companies in the region. I need you to prepare a report that covers two matters:
Firstly, recommend, with reasons, the approach that Kwirtmak should now take to manage the political and operational risks in Xland following the acquisition. [sub-task (a) = 50%]
Secondly, evaluate the arguments for treating Kwirtmak's cybersecurity as a strategic issue that should be overseen directly by the Board.” [sub-task (b) = 50%]
Reference material — Xland Expansion and Risk Context
Kwirtmak has recently acquired the Advanced Materials Facility located next to its existing production site in Xland. The facility specialises in carbon fibre composites.
The acquisition is expected to support Kwirtmak's strategy of expanding its product offering beyond traditional materials such as plastics, metals and ceramics.
Operating in Xland also introduces additional risks. Recent reports suggest that industrial companies in the region have been subject to cyber-attacks targeting design systems, production processes and supply chain networks. Given Kwirtmak's reliance on CAD software, digital design files and connected production systems, it may be particularly exposed.
There are also concerns about the broader political and regulatory environment in Xland. The government has shown increasing interest in controlling access to strategic technologies and industrial data, particularly where foreign-owned businesses are involved. This could lead to restrictions on data transfer, tighter compliance requirements, and increased operational uncertainty.
Corporate governance guidance highlights that risks such as cybersecurity and supply chain resilience are becoming more critical for technology-based manufacturers.