tarting out as a family business within environmental tech- niques, Mercatus Engineering AB, with its base in Vimmerby/Småland, grew rapidly during the 1990s when protection of the environment was a new market. After a short period of uncertainty in 1999, the board decided to invest intensely in its staff and in the re-organisation of the company. During one year all employees were given special training with the goal to obtain a higher degree of team spirit. The company says the investment has paid off. Mercatus has received a row of awards for their efforts.Although such staff training might be fruitful for the company at- mosphere, and companies frequently mention it as a reason for improve- ments, the question is whether it is the primary reason for the increased earnings and effectiveness of many companies. Investment in staff is a well used form of marketing, both internally and externally. Companies typi- cally want to show that their individual actions are the real reasons for change when in many cases it is Business cycles and external forces. After a period of slack environment issues have become a booming market again. New technologies are developed and launched successfully.