Question

Please read the question carefully, there are many answers on for the same questions but most of them (if not all) missing the calculations and explanation so I need a full answer including the calculations and the decision tree that support the answer if that could be possible. ICI Canada ICI's Canadian subsidiary (now part of AkzoNobel) discovered a new but unpatentable application for a chemical agent to reduce pulp-mill water pollution. However, everything was quite uncertain, and the management was trying to decide whether to go 17 ahead with its R&D or abandon the product. The following questions indicate the primary risks:

Would market tests confirm that there is a significant market for the product and could the company develop a new process for making this product-that is, is it technically feasible?

Answer 1

The business decision for ICI Canada regarding R&D involves creating a decision tree to evaluate the outcomes and financial implications of market demand confirmation and technical feasibility. Addressing environmental health by reducing pulp-mill pollution aligns with sustainable principles.

Step-by-step explanation:

The scenario presented revolves around ICI Canada's (now part of AkzoNobel) decision-making process concerning the research and development (R&D) of a new application for a chemical agent aimed at reducing pulp-mill water pollution. Given the uncertainty of technical feasibility and market demand, constructing a decision tree is an appropriate method for visualizing the different possible outcomes and their associated risks.

In the decision tree, the first node would represent the initial decision to proceed or not with R&D. If the decision is to proceed, the following nodes would represent the key risks identified:
(a) Market tests to confirm significant demand.
(b) Technical feasibility of developing a new process.

Each of these possibilities would lead to further branches representing the success or failure of these aspects and the consequent financial implications, which might include costs of R&D, potential market revenues, and mitigation of environmental damage. The final step would involve calculating the expected monetary value for each outcome to facilitate an informed decision.

Considering the impacts on environmental health, supporting R&D focused on new methods to diminish pollution aligns with the broader push towards minimizing toxic pollutants and protecting biodiversity. Chemical neutralization and the development of alternatives for pollutant management are crucial actions that industries must consider for sustainable operations and long-term ecological preservation.