Contemporary Management Issues in the 21st Century

This report analyzes key management issues in the contemporary business environment and explores the use of causation and effectuation approaches in venture creation. It discusses the importance of clear goals, values, mission, and objectives for business ventures and the impact of internal and external factors on business functioning. The report concludes that entrepreneurs require high potential to work among the industry and need to use the causation and effectuation approach to provide best decisions and clear goals for their ventures.

Contemporary
Management Issues in
the 21st Century

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Explanation for artefacts requires a novel approach to the concept of venture creation drawing
on the understanding of business management issues................................................................3
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
This report aims to analyse the key issues presents in the management structure of the
contemporary business environment. The statement reflects that the artefacts are the novel
approach which is important in the entrepreneurship management. It refers to carry out the
business practices by analysing business environment, challenges and ways for innovation. In the
management and economics, there are two major terms that is causation and effectuation. The
business organisation mainly runs on pre-determined gaols and then set the objectives to carry
out the different functions (Memar, Sundström, and Larsson, 2021). The effectuation approach
is lead to carry out the functions in practical manner. This report is going to analyse how the
firms, organisations and the markets to run the business venture successfully. There will be
critical evaluation of understanding the business issue in the dynamic business global
environment.
MAIN BODY
TASK
Explanation for artefacts requires a novel approach to the concept of venture creation drawing on
the understanding of business management issues
The concept of artefacts is come across from various novelist. It consist many business
model, pitches and prototypes that causes impact on the surroundings. Not all artefacts causes
problem but rather it grants support in the business development and growth at global level.
There are many subdivision of the artefacts in terms of abstract, material and narrative. The
entrepreneurial ventures gets affected by the use of these artefacts in doing functions and
practices. It shows that, every business is running with the efforts and traits of entrepreneurs who
itself are the true leaders, managers and the investors. In the initial phase of a business, the
entrepreneurs face many difficulties in order to reach at global level and achieve market growth.
So that, they adopt the approach of causation and effectuation which carry out the business
practices in the perfect manner. In the approach of causation, the entrepreneurs first creates a
standard goals in which all the function will be depend on (Guili, and Ferhane, 2018). These
pre-determined goals creates a path towards the success of business which will be done through
the effectuation process. As per this, the entrepreneurs are setting strategies and plans to be
effective in achieving their set goals. It is the way for the taking the decisions which will be in

favour of the organisation. Good decisions are necessary to enable products for the customers,
hirer best employees and maintain international relations for the in the dynamic business world.
Technology is affecting the economy in a broad manner.
Entrepreneurs need to change functions and organisation structure in terms of technology.
It require decision required to create changing and adopting culture in which the employee get
familiar with the new ways and criteria of working. Decisions are needed to take for employee
well being, management structure, establishing lines of communication, provide roles and
responsibilities and set regular task for the daily productivity and profitability of the business.
These areas comes under the effectuation process in which control and monitoring is also
important part (Jun, and et.al 2022). When entrepreneurs take all the decisions and expect a
potential outcome for it, control and monitoring enable in which all activities gets done under the
supervision of leaders and managers. In this contemporary business world, prompt actions should
considers to take as soon as problems get identified and analysed. There is requirement of
consultancy factors that will be able to organise the artefacts in the particular use of the
resources.
The effectuation process also consist the same goals set into the causation effect. It shows
that the use of theories and models are necessary to apply in the entrepreneurial ventures. These
models helps in identifying the best use of resources and impact on the dynamic factors on
business profitability. The modern business working getting difficulty and challenging day by
day. It creates hurdles in technological up gradation, setting strategies and retain employees. The
causation and effectuation are two important concept which helps in working on the set goals.
The issues may arise by switching from tradition working ways to modern ones (Henninger, and
et.al , 2020). It is an entrepreneurial trait they are particular and wants to stick to their aims. It
makes them motivated to achieve that goals by putting as much as effort it take. From working
into modern times, decision making is also become difficult as one decision might not fulfil all
the workplace activities. For example, when an entrepreneur look for creating an innovative idea
of product development in food or clothing sector.
They need to research about the market trends, resources, employee hiring, financial
stability. Also, the decision will focus on the advantages and disadvantages of the idea by
understanding the current market needs. It will eliminate the chances of failure and open doors
for the success. There are many example of entrepreneurs like Steve jobs, Tim cook, Jeff Bezos

all are running the largest companies in the world like Apple and Amazon. This defines that,
these leaders have a distinct approach towards their business and ready to build innovation and
new experience for the society. There are some exception for the effectuation process into the
modern entrepreneurial ventures. Many new situation and challenges arises in the contemporary
business world mainly at global level. So that, current decisions might not suit for the future
preferences due to change in the market requirements, customer taste and economic state. Hence,
it is not necessary that every approach will be best suit for the business (Uehara, 2020). It is all
about using the theoretical concepts while implementing the business ideas and execution. It will
be beneficial to avoid failure and get into the shoes of customers. In the management practices,
managers use various strategies, tools and techniques to get rid of any complexities. These tools
are helpful in creating best practices which will provide potential to the company.
The models and theories are made to provide helpful decisions for the entrepreneurs. It
will assist them and make them understand about the business environment. The causation and
effectuation process are necessary but it has some exception due to unwanted practices and
market uncertainties. In creating ventures, there is requirement of both the approaches to plan the
goals and take initial decisions. The entrepreneurs of large companies are required to set the
standards and all the detailed outlined of projects. These initial designing helps in frame the vital
functions, departments and activities to help in creating products and services. It has critically
analyse that causation and effectuation are both integrated process of a business in order to fulfil
the demands of the society and positively contribute into the economy (Mirvahedi, and Pira,
2019). Clear goals, aims and decisions will involve the consumer trust on the business and helps
them to grow in the market. Many ventures seeks government support at the initial starting
phase. This will boost their financial conditions, potential to grow and survive into market. The
modern business issues driving hurdles for many start-ups and new ventures. These issues could
be in terms of political interdependences, tax regulation, trade barriers, shortage of skilful
employees, conflict of interest and other management issues at workplace, structure of culture.
There are some of internal and external which directly and indirectly impact on the business
functioning (Khurana, Dutta, and Schenkel, 2022). Internal factor includes issues related to
HRM, operations, productivity and efficiency. Whereas, external includes the economy,
environment, technology, legal, social and political interferences.

All these business surroundings have some risk and challenges for the ventures together
on small or large level. Therefore, it is vitally essential to regulate a pre determined aim into the
overall departments and to every employees (Melo, Silva, and Almeida, 2019). This will set
their mind clear and they will keep their organisational gaols at their priority area. A clear aim is
much better than the fluctuate targets which only gives confusion and misunderstandings.
Business is not meant for resolving doubts and conflicts rather it is meant to create relationships
by working for betterment of the people.
CONCLUSION
The report has concluded that the contemporary business situation are getting complex
day by day. There has been arrival of many changes in technology, customer demands, trends
and other health issues which affect the mind of society. Therefore, today's entrepreneurs require
high potential to work among the industry. It directly gives rise to competition and market
factors which will be able to provide more efficient strategy. Therefore, the report has concluded
that, it is necessary to use the causation and effectuation approach which will provide best
decisions and clear goals, values, mission and objectives for the business ventures.

REFERNCES:
Books and Journals:
Memar, N., Sundström, A. and Larsson, T., 2021. Teaching causation and effectuation in the
large classroom: A production–trade game. Journal of Management Education, 45(3),
pp.438-478.
Guili, H.E. and Ferhane, D., 2018. Internationalization of SMEs and effectuation: The way back
and forward. In Multidisciplinary Digital Publishing Institute Proceedings (Vol. 2, No.
24, p. 1422).
Jun, and et.al 2022. The effect of effectuation and causation approach on entrepreneurial
orientation in the presence of leader dominance and self-efficacy. Journal of
Entrepreneurship in Emerging Economies.
Henninger, and et.al , 2020. Effectuation vs. causation: Can established firms use start-up
decision-making principles to stay innovative?. International Journal of Innovation
Management, 24(01), p.2050002.
Uehara, M., 2020. Application of causation and effectuation processes to risk
management.Bulletin of Aichi Sukutoku University-Faculty of Business, 16, pp.15-27.
Mirvahedi, S. and Pira, D., 2019. Investigation of Entrepreneurs’ Decision-making Logic While
Entering Foreign Markets Based on Effectuation and Causation. Journal of Business
Management, 11(4), pp.992-1013.
Melo, F.L.N.B.D., Silva, R.R.D. and Almeida, T.N.V.D., 2019. Gender and Entrepreneurship: a
comparative study between the Causation and Effectuation approaches. BBR. Brazilian
Business Review, 16, pp.273-296.
Khurana, I., Dutta, D.K. and Schenkel, M.T., 2022. Crisis and arbitrage opportunities: The role
of causation, effectuation and entrepreneurial learning. International Small Business
Journal, 40(2), pp.236-272.