Causation and Effectuation in Business Management Issues in the 21st Century

Contemporary
management issues
21st century

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The approaches of causations and effectuation of entrepreneur are contrasting with each
other. The causation approach state that, entrepreneur of the company paid emphasis on the
predefined objectives and then aims has been established for the purpose of determining the
necessary means which help in achieving the objectives(Alpidovskaya and Popkova, 2019). On
the other hand, effectuation approach state that, entrepreneur paid focus on that means which are
present in front of them or that are posses by them. This is used, for the purpose of converting
the aims into one or more goals which are not predefined. The following report is going to
discussed about the meaning of causations and effectuation and its relevance in order to
understand the business management issued which are uncertain in nature in the global business
environment.
TASK
Due tot rise in overall economy and globalisation, all the common practices which are perform
by the organisation ten to twenty ago in the competitive market has been changed. Due to
globalisation a major impact has been seen on the global business environment. Along with this,
due to the rise in the used of internet, the way of performing the different types of business
functions by the organisation has been changed. This factor is being considered as one of the
most important factor which play a very important role in change in the economy. The approach
of causations is basically a ends-driven approach which include the decision making with
management plans(Caena and Redecker,2019). On the basis of decision making process these
plans are made which assist in attaining all the set objective and goals. On the other hand, it has
been observed that the concept of effectuation is different form causation. This means that focus
have not been paid on the end objectives and the resources which are used to attain that
objectives. Focus have been paid only on those resources which are in the hands of company and
entrepreneur.
Effectuation is the process of taking established means in which focus has been paid on the
selecting aspects in between various possible effects, which are developed by means which are
present in front of them. However, a debate has been still going on the utilization of causations
and effectuation to a different extent in relation to a specific time period. In addition to this, the
traits of entrepreneur directly affect or influenced the logic of decision making. The STP of the