Cement $\mathrm{Co}$ is a listed company specialising in the manufacture of cement, a product used in the building industry. The company has been a major player in the construction sector of European country, Q, since its formation in 1997. It is passionate about customer care and proud of its active approach to safety and sustainability (recognising the need to minimise any adverse environmental impact of its operations).

The company operates in a very traditional industry but profits can be volatile. Q's economy has been in recession for the last three years and this has had a direct impact on Cement Co's profitability. Shareholders are concerned about this fall in profit and have expressed their desire for a secure return. Competitors, keen to find ways of increasing profit and market share, in these difficult economic circumstances, have started to increase the level of investment in research and development, ensuring their products anticipate and meet the needs of its customers.