Synopsis

Mercatus Engineering AB, a company in Vimmerby/Småland working with environmental techniques, grew rapidly during the 1990s when protection of the environment came into market. In 1999, the board decided to invest in its staff and in the re-organisation of the company. The company claims that this investment was necessary and has led to better results. Although such staff training may improve the company atmosphere, it is argu- able whether actions like these are the primary cause for the increased earnings and effectiveness of many companies. It may also be the business cycle.