The single European currency ‐ implications for business units

This article considers the business unit level impact of the introduction of a single currency in the European Community. Most literature to date has concentrated on macroeconomic interpretations of this initiative ‐ the microeconomic issues have received scant attention. The article proposes that all businesses, irrespective of size or market sector, will be affected by the shift to a single currency, even in countries whose governments choose not to partake in the system. To this end business units must give adequate attention to the implications of the change in terms both of strategic and of operational impact. The article suggests potential forms of impact on business units and concludes with a generalised framework of business to manage the process.