Catanza Technologies Case Study: Decision Making Techniques for Developing Robotic Lawnmower

Catanza Technologies Case
Study

EXECUTIVE SUMMARY
This report is based on Catanza plc who is proposing to develop a new robotic lawnmover
whose code in RLM19. There are two options available with Catanza for the development of
prototype that is, EW or Electric Wire and GPS or Global Positioning System. Accordingly, to
determine an optimal choice, analysis has been done by adopting several decision making
techniques such as decision tree analysis, Net Present Value technique and Sensitivity analysis.
On the basis of these analytical technique, a most suitable or profitable course of action has been
recommended. Furthermore, the review of different alternatives associated with recommended
options has been done along with highlighting the strength of the process which facilitates the
use of decision-making techniques such as expertise of marketing team, availability of
probabilities for several future events, etc. Alongside, several limitations of the process have
been identified with reference to potential additional research & collection of data to facilitate
better decision-making process.
With the help of analysis performed, it has been determined that EW has characteristics
such as low risk tolerance, lower initial cost of investment and reaching market quicker. On the
other hand, with the help of data analysis performed through decision making framework such as
NPV and decision tree analysis, GPS was found to be a preferred option because of higher
potential in generating revenue despite of the fact that it leads to additional risks. The reports end
with the recommendation where it has been stated that Catanza should go for GPS in case of
high risk appetite while the company should go for EW in case of low risk appetite. If the risk
appetite was found to be moderate, then additional research is needed to choose the best
alternative.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Question 1........................................................................................................................................4
Background and situational analysis...........................................................................................4
Methodology................................................................................................................................5
Assumptions................................................................................................................................5
Decision tree indicating choices and decision made on the basis of NPVs.................................6
4. Sensitivity analysis as an alternative decision making technique.........................................11
5. Recommended course of action.............................................................................................11
Question 2......................................................................................................................................12
Strength of the Analysis.............................................................................................................12
Limitation of the analysis..........................................................................................................13
CONCLUSION..............................................................................................................................14
RECOMMENDATION.................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Decision-making process is basically a process of making choices by identifying and
analysing different alternative or course of action via using the various decision-making
techniques (Gao and et.al., 2021). The present report is based on Catanza Technologies which
was founded in the year 2002 in Brisbane. In the year 2008, the company has expanded its firm
into industrial robots and in the year 2014 the company have launched a commercial grade
robotic floor cleaner. Now, in the year 2019, Catanza Technology in order to develop its
production prototype based on two approaches such as Electric Wire (EW) perimeter or GPS and
sensing navigation. The report will use decision tree to decide and recommend which course of
action out of the two alternative approach Catanza Technology have to adopt. Further, the report
will also cover the strength and limitation of the analysis in the context of the problem faced by
Catanza Technologies. The problem faced by Catanza Technology is such that the decision taken
by company is not appropriate, suitable and profitable to company. Lastly, the report will also
recommend the information and investigation that they can further needed in order to improve
their analysis and decision-making process.
Question 1
Background and situational analysis
Catanza Technologies basically offer three product type such as industrial sensor, industrial
robots and robotic floor sensor in the year 2019. But due to the decline in the automotive
manufacturers from Australia by 2017 they have decided to transitioned to other application and
technology (Leite and et.al., 2022). It means the development of commercial robotic lawn
management tools and equipment’s. In order to develop the commercial robotic lawn
management tools and equipment and resolve the problem of decline in automotive
manufacturer, the company is seeking to adopt one out of the two approach such as Electric Wire
and GPS. Catanza has invested around $1.65 million in the market research and development at
initial statge. This is an initial sunk cost which is helpful for determining the development of this
new product.
On the basis of turnover of Catanza Technology by the product type it is identified that the
overall performance of Industrial sensor product of company was better than the other two
products. It is estimated that the demand of the Automatic Robotic Lawn Mower will be high in