The European Union 1993–1994: A Strategic Management Approach

The European Union (EU, formerly the European Community) celebrated, in November 1993, the ratification of the Maastrict Treaty pushing European union another step closer to realization. In the face of growing external forces (the disequilibrium caused by the disintegration of Eastern Europe and the former Soviet Union, the war in Bosnia and global economic recession) that affect the planned progress and strategy the European Union (EU) leaders pursue, the authors of this article use a strategic management framework to analyze the EU. To our knowledge, this has not been attempted before. There is a growing volume of literature on the adaptation of the strategic management model to public sector institutions (Rainey, Backoff & Levine, 1976; Eadie & Steinbacher, 1985; Bryson & Williams, 1983; Nutt & Backoff, 1993). Public enterprises sometimes pursue objectives different from those of private — and third‐sector (non‐profit) enterprises (Jauch & Glueck, 1988). Public managers must be able to deal with more complex internal and external environments than private — and third sector managers. Despite these and other difficulties, a strategic analysis provides clues for effective strategic management in the public sector (Eadie & Steinbacher, 1985; Ring & Perry, 1985; Nutt & Backoff, 1993). A strategic management model is used here to provide a framework of analysis and direction on which critical areas of concern need to be addressed for the EU to continue with their creation of a community wholly open to the free and unimpeded circulation of people, services, capital and goods (Wechsler; Hahn, 1991).