Management needs to prepare for a Greek exit from the Euro
It now seems highly likely that within the next 18 months the Eurozone will look a little different. Each passing day makes the departure of Greece more likely as it struggles with social unrest and the consequences of years of government fraud and unsustainable social policies. Many banks and economics commentators who, just a few weeks ago were confident the Greeks would keep the Euro, are now contemplating the country's departure.
Some companies have now started to consider the impact such a move will have on their businesses. Initial attention has been focused on introducing a new Greek Drachma, or making policy decisions to enforce Euro or Sterling prices. Yet there are other, perhaps more subtle areas where senior management need to focus a little of their attention.
Direct costs such as distribution and travel may also come under scrutiny. The impact on distribution or supply within Greece could also be facing uncertainty. So too could the rest of Europe.
An exit may harden the European recession, perhaps bringing other countries with it. Social unrest could easily follow, with changes of government possible. Credit, already in short supply, could also be affected.
In short, a Greek exit will have an impact that will extend beyond its own borders and may touch many different firms - even those that think they will escape. Management should be mindful of this and ready to respond should the need arise.
Some companies have now started to consider the impact such a move will have on their businesses. Initial attention has been focused on introducing a new Greek Drachma, or making policy decisions to enforce Euro or Sterling prices. Yet there are other, perhaps more subtle areas where senior management need to focus a little of their attention.
Direct costs such as distribution and travel may also come under scrutiny. The impact on distribution or supply within Greece could also be facing uncertainty. So too could the rest of Europe.
An exit may harden the European recession, perhaps bringing other countries with it. Social unrest could easily follow, with changes of government possible. Credit, already in short supply, could also be affected.
In short, a Greek exit will have an impact that will extend beyond its own borders and may touch many different firms - even those that think they will escape. Management should be mindful of this and ready to respond should the need arise.
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