Key Topics: Strategic risk assessment, innovation management, ethical decision-making, shareholder and stakeholder interests.

Models Covered: Net Present Value (NPV) analysis, ethical decision-making frameworks, risk assessment.

Description: SHC, a company specializing in manufacturing components for offshore oil rigs, has discovered a new “sink method” for producing its primary product, CAS4, at a lower cost and higher efficiency. The board is debating whether to keep this innovation confidential or license it to competitors. The case examines the strategic and ethical implications of both options, requiring an analysis of potential benefits, risks, and alignment with SHC’s long-term objectives. You will assess these choices from both a shareholder and broader stakeholder perspective, draft strategic communication, and evaluate SHC’s adherence to performance excellence criteria.