Introduction In the mid 40’s, United States experienced what was termed as the baby boom. In 2006, there were reports everywhere in the media about the baby boom generation turning 60. This has led to a demographic crunch. Just like America, Europe’s position of the demographic inclination points out that more and more people are growing older and that the generation of the 50 plus and the boomers takes a third of the total population of the UK. This could be attributed to the demographic phenomena which are rising of life expectancy due to improved health services and the reduction of fertility rate. This demographic shift will affect businesses from two perspectives. In terms of market, the buyer behavior is bound to shift indicating the buying traits of the aged and the second perspective is the effect of this demographic shift on workforce. It is therefore a point of the business organizations in the EU to put up measures that will ensure there survival as a result of this aged population. Impact and strategies in EU An aging population means a shrinking workforce. This means that businesses must prepare for hard times in terms of labor. In the UK, a study carried out by the University Of Nottingham Institute Of Enterprise and innovation indicated that most of the respondents believe that in the next ten years, the greatest problem that businesses are going to face is shortage of labor as a result of aging population and fuel shortages (Nottingham 2006). Adecco Institute set out a demographic fitness survey in the five major economies of the EU with an aim of finding out how ready the business organizations in each country were in terms of coping up with the demographic crunch. To facilitate this, the institute developed a five factor indicator which included the following:   * Career management   * Lifelong learning   * Knowledge management   * Health management   * Diversity management The grading was done at a scale of 100 to 400 points. At the end of the survey, the UK came up tops with a total 186 points tying with Germany while France came fifth with a miserable 174 points. The results did not really indicate that the UK was safe from the effects of the demographic crunch, in fact, Wolfgang Clement, the chairman of Adecco Institute pointed out that all of the five major economic strongholds of the EU attained the recommended demographic Fitness Index (DFX). The purpose of the survey was to show the EU business organizations that the demographic trend was attaining a new look that called for new reforms that would reflect the new trend (Growing Business 2008). Governments have therefore resorted to putting up mechanisms to curb this problem of the exodus of aged workers. In Britain, Prime Minister Tony Blair had to make reforms on the pension reform legislation by rising the age of retirement to 68 years. In some instances, governments have cut down on retirement benefits so as to discourage people from retiring early. In the same line, France increased its retirement age from 35 to 40. Individuals were supposed to work productively in their years to justify them to get the retirement benefits. (Drudge 2006). Britain also made resolutions to encourage more working-age immigrants. This initiative was taken after the EU expanded its membership to 25. Citizens of other EU countries were allowed to enter without restriction. 30