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This report analyses the effects, of the possible introduction of the Euro, on 'The Carphone Warehouse' group. Also suggested is a strategic plan of action for the company to implement, should a single European currency be introduced.
Brief History of The Carphone Warehouse group plc:
The Carphone Warehouse was first established in 1989, as a small one-man operation run from an office, simply as a retailer of automotive-cellular solutions and services. The business moved from strength to strength; exponentially expanding its range of products and its customer base as time went on.
Today in 2004 the company still offer the same core products & services within the communications industry, but now to an enormous market. The Carphone Warehouse is one of the fastest growing retailers in history, which has been largely down to its focus and success of providing unrivalled high levels of customer service.
It now operates over 500 stores across the U.K. in addition to over 600 stores across the continent, all of which have been established over the past 10 years. Despite the huge number of outlets, the group has no plans to stop here; an extra one hundred stores are planned by the close of each of the two coming financial years. The company's main foci in terms of European expansion are France and Spain.
An Introduction to the Euro:
The 'Euro' was the name given to the single European currency which was first introduced on the 1st of January 1999. At the time of the introduction, 11 European countries embraced the single currency: Austria, Belgium, Luxembourg, Finland, France, Germany, Ireland, Italy, Holland, Portugal and Spain. Four E.U countries opted out of the single currency: Britain, Denmark, Greece and Sweden.
Due to the huge scale of the conversion operation, the countries involved were given three years time, in which they were to implement full incorporation of the currency. On January 1st 2002, the Euro currency would be finally introduced. It was also decided that by June 30th 2002 the individual countries old currencies would no longer be legal tender.
"The successful development of the euro is central to the realisation of a Europe in which people, services, capital and goods can move freely. This is history in the making. It is the largest monetary changeover the world has ever seen - join us in celebrating and finding out more about our new currency." (European Central Bank)
Advantages & Disadvantages
Naturally there are many implications of the introduction of the single European currency on all businesses operating in or with Europe. There are a both benefits and constraints, upon the businesses. Follows are the key points that the company must bear in mind when considering the Euro's effects.