Musgrave SuperValu-Centra, the grocery group, has been awarded The Irish Times/PA Consulting management award for 1999, the 23rd year of the competition which recognises excellence in the application of modern management thinking and techniques.

Presenting the award at Restaurant Patrick Guilbaud in Dublin last night, the Taoiseach, Mr Ahern, said the company represented the best of modern, dynamic, Irish companies.

"I had the opportunity to see Musgrave SuperValu-Centra's group operation at first hand myself in Cork some months ago when I visited their national distribution warehouse," said the Taoiseach.

"I saw state-of-the-art facilities and commitment to excellence which help explain why the group is Ireland's largest grocery and food distributor and how it works as an all-Ireland organisation.

"I know that great credit is due to all the people who are involved in this great business," Mr Ahern said.

Musgrave SuperValu-Centra received the award for its "contribution to the national good, achievement of outstanding results and generation of competitive advantage".

Accepting the award on behalf of the company, its chief executive Mr Eoin McGettigan paid tribute to its staff and franchisees throughout the State and the North.

"Traditional, indigenous mature industries don't often get such awards," said Mr McGettigan. However, the £100 million (€127 million) commitment by Musgrave's franchisees to the development of their outlets was reflective of the dynamic spirit that characterised the State's recent economic success.

Mr McGettigan said Musgrave's profit-sharing scheme, introduced in 1985, recognised the commitment of its staff.

Present at the award was Major T.B. McDowell, chairman of The Irish Times Trust Ltd, who introduced attendees to the managing director of The Irish Times Ltd, Mr Nick Chapman.

The chief executive of PA Consulting Group, Mr Ray Nulty, told attendees that the strategic implications of the euro were not being addressed either by the State or its partner states in the single currency zone.

The telecoms and financial services industries in Europe will be dominated by no more than four or five players in the future, said Mr Nulty, half of which will be US-owned.

Many of our leading Irish companies would be acquired by these international giants, he predicted.

In consequence, the EU will be forced to introduce pan-European regulation and controls to protect investors. The opening of the Nasdaq exchange in London in 2001 would have immense influence on the development of a high-tech Europe, he said.

Mr Nulty said businesses in the euro zone should devise strategic responses to these changes and others presented by the development of the euro, the single market and the development of e-commerce.

Firms must pursue better quality services, staff and IT, said Mr Nulty. They should expand their product range, perhaps focusing on niche positions in Europe, and undertake mergers, alliances and co-operation agreements.

Mr Nulty added that companies should "fundamentally assess the opportunities for international trade through collaborative e-commerce and collaborative culture branded product ventures". The message for Irish business was: "If we want to survive and be part of this further and inevitable consolidation and growth, then we must make proper strategic choices and plans now."

The award is adjudicated following consideration of written submissions based on criteria including all management disciplines within the manufacturing, construction and natural re source-based industries, the public and services sectors and agriculture.

The judges this year were ESB chairman Mr William McCann; United Drug chairman Mr Martin Rafferty; the chief executive of Microsoft Ireland Ms Ann Riordan and the chairman of Ulster Carpet Mills, Mr Edward Wilson.

Previous recipients include Jefferson Smurfit Group, Waterford Crystal, Aer Rianta, Waterford Stanley, Bank of Ireland and IAWS.