2. List topics or issues that are not mentioned in the case but should be considered before...

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2. List topics or issues that are not mentioned in the case but should be considered before the project gets the go-ahead.

The first sentence in the executive summary of the draft business case reads, “The proposed cement factory would be the perfect answer to top management’s goal to grow PCS’s product base while remaining a low-cost producer of building materials.” Geological work performed as part of the feasibility study had pointed to a site containing high-quality limestone—a key resource in the production of cement—that could be exploited very economically. The site, already owned by PCS, was underutilized and could suitably house a new plant located right next to the proposed limestone pit. It afforded ample and cost-effective access to all essential logistics and resources, including other materials needed for the manufacture of high-quality cement.
The business case and feasibility study also indicated a high return on investment for the project—
well above the hurdle rate set by the company for a new project to be considered for inclusion in its project portfolio. Given the company’s competency in cement production, the technical and production risks were assessed as low.

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