Causation and Effectuation in Understanding Uncertain Business Management Issues

Contemporary
management issues
21st century

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

INTRODUCTION
The Causation as well as Effectuation approaches of entrepreneur are contrasting with
each other. The approach of causation state that, focus has been paid by the entrepreneur on the
predefined set goals and then aims has been established in order to determined the necessary
means which is required to attain the goals (Coudounaris and Arvidsson, 2021). On the other
hand, the approach of effectuation state that, focus has been paid by the entrepreneur on that
means which are present in front of them or that are in their hand. This can be used in order to
convert the aim into one or more goals that are not necessarily predefined. The following report
is going to cover the concept of causation and effectuation and its relevance in order to
understanding the uncertain business management issues in the global business environment.
TASK
The common practices which are done by the different types of organisation ten to twenty
year ago in the market has been change due to the overall rise in the economy and globalisation.
Due to globalisation, overall change has been seen in the global business environment. Rise in
the use of internet, is being considered as one of the most important and significant factor due to
which the way of operating the different function by the firm within the economy has been
changed(Feng and et. al., 2020). The concept of Causation is basically ends-driven which
comprises of decision making with management plans. These plans are totally based on strategic
decision making process which help in achieving the set goals and objectives. On the other hand.
The concept of effectuation is to totally different or opposite from the concept of causation. This
means that don't paid focus on the end goals and the different resources which are required to
achieve that objectives. Emphasis has been paid on that resources which are possessed by the
company or entrepreneur.
Effectuation may be defined as the process of taking established means and paid focus on
selecting aspects between the different possible effects, which can be developed by means that
are present in hands. However, a debate has been still on going, on the utilization of the
effectuation and causation to the different extent in relation to time period. In addition to this, the
traits of entrepreneur is being considered as those factors which affect or influence the logic of
overall choice of decision making. The STP of an organisation is being considered as an specific
of causation. This help the firm in paying focus on establishing different set of goals in order to