Contemporary Management Issues in the 21st Century

This essay explores the effect of causation and effectuation in the changing business environment issues in the global contemporary management. It discusses the challenges faced by businesses in the international market and the importance of adopting effective strategies for achieving success. The essay also emphasizes the significance of training employees, complying with international policies and laws, and controlling the effect of management issues in rendering better services to customers.

Contemporary
management issues in
the 21st century

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................5

INTRODUCTION
Many businesses aims at providing network resources and to implement sharing of new ideas but
exchange of limited knowledge between developed organizations. Causation and effectuation is
related with the tendency of sharing ideas between organizations and network
resources(Andreoni and Chang, 2019). Causation strategy can be defined as a process in which
entrepreneurs focus to achieve a particular goal and find ways to reach the goal. Whereas
effectuation is defined as a process in which entrepreneurs tends to focus to solve a problem
which is unpredictable but can be controlled by efforts of an individual or organization. Due to
the rise of globalisation and new economy, many companies are internationalising at a fast rate
to increase their market share and performance. The essay focus on interpreting the effect of
causation and effectuation in the changing business environment issues in the global
contemporary management.
MAIN BODY
As per the novelist and authors it is defined that companies cannot predict circumstances
in the future, but they can focus on building organizations that will flourish and survive under
any future challenges. With the changing dynamic environment, businesses has to adopt changes
that are necessary for standing out in the global market. New changes in the technology brings
new development that means company needs to make large investments, build strong teams, buy
expensive equipments that helps in saving time to run the operations of business smoothly.
Causation and effectuation plays an important role in a business as they provide a clear
image about decision making process in new ventures and helps in designing plans for
achievement of organization goals (Arato and Cohen, 2018). Increasing competition globally is
affecting the organization as they face more problems such as trade barriers fall, new global
competitors and transaction prices decline in the domestic market. Due to this organizations need
to adopt new technology for product innovation that attracts customers and for saving time and
effort for increasing productivity of employees.
Globalisation can be defined as a process through which businesses develop international
causation or starts operating business functions on a international scale. It defines open flow of
technology knowledge, information and products across consumers and countries. It helps
companies to expand customers base, more market share and to generate profitability. Now a
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days most of the business are getting internationalised so that they reach new clients, increase
overall earnings and enhance customer base for selling goods and services. There are many
challenges that business face in the international market because of more competition in the
market. Causation and effectuation are two approaches that helps entrepreneurs and businesses to
understand the effects of dynamic business management in global market. Effectuation approach
provides entrepreneur ways to overcome problems by proper utilization of resources, set desired
objectives to be achieved, and better decision making which helps in developing market strategy
to achieve desired goals (Erbaugh and Oldekop, 2018).
Dynamic management business is changing and it is highly flexible like increasing
competition, improvement in technology, change in taste and preferences of consumer and
change in policy of government. Due to new firms in the 21st century in economy it is necessary
for the business to operate internationally to achieve competitive advantage. Causation approach
relates to the changing business management in global business environment which helps
entrepreneurs to understand the market for expanding business and achieve business objectives.
Every country has its own culture, government, laws, policies, time zones and currency which
give challenges to business entrepreneurs to manage multiple factors for growth and
improvement. To overcome the challenges of international market, businesses has to train
employees and select candidates with predefined business plan. To accelerate the growth of the
organization it is important to consider the factors that effects the functioning of the business in
the global market. Communication is a main factor in an organisation, especially in managing
across different languages, cultures, laws and policies. Causation approach implies that effective
communication with customers, clients and employees is essential for achieving success in
global markets. Changing technology is an important challenge that effects the growth of
business because tech advancement helps in bringing new changes that make it different fro
others (Jones and Zeng, 2019). In case company fails to adopt innovative techniques then
competitors will acquire more market share and will influence customers to buy products of
competitors.
There are several management issues that impacts the contemporary global business
environment while operating business functions. With the change in 21st century increase in new
technology developments and as the global marketplace is dependent more on internet it is not
necessary that all business are prepared to deal with people from different languages and culture.
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To compete internationally, companies need to make investment in human resource to provide
trainings to employees so that they work effectively and efficiently. Because of less knowledge
and information about international policies and laws it becomes difficult for companies to
develop fully owned subsidiary abroad. Hence, business network is necessary to enable large
global coverage and to acquire multiple markets. Managing workflows for developing a team is a
challenge that business face in international market as some employees have problem with the
working conditions and some might need guidance for working on a project (Long and Qu,
2018). The company must ensures that team is working with full capacity and is able to do the
work within the defined deadlines.
Fluctuations in the rate of currency effects the financial decision of the business and also
effects the inflation rate at the time of setting a price for a product to be consider in international
market (Raffnsøe, Mennicken and Miller, 2019). So before taking any decision regarding
finance, entrepreneurs must consider the change in rate of currency to avoid future
consequences. Setting correct price of a product to sell in the global market is a major challenge
for the business. For right product price, company must consider its logistics costs, costs and
price of similar products offered by competitors locally. Supply chain management is a major
challenge in the global market because of variations in regulations and regions, thus for
achieving company's success in foreign market it is essential to have a short and cost-efficient
supply chain. Environmental factors also affect the operations of the business in international
market because any ignorance in taking care of these issues will effect the brand image of the
company and will reduce the sale of its products. Choosing the right payment methods for
customers is considered as a challenge for business because inconsistency in payments will result
in negative influence on customers that makes difficult for entrepreneurs to satisfy customers.
Company must consider payment methods that are safe, secure and credible for customers and
gives them a sense of satisfaction while doing payment.
These management issues impact the operations of the business in the global market
which needs to be understand by entrepreneurs to acquire more market globally. A business can
overcome these challenges easily with determination and focus by respecting the tradition and
culture of different countries in which the business operates. Causation and effectuation help
entrepreneurs in setting objectives and strategic plan that enables them top overcome challenges
in global business environment. These approaches help the business in understanding strategies
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that will work and will also helps in identifying the source of issues. It is important for
organizations to focus on minimizing risks involved in operating business functions
internationally. International market gives business more opportunities for selling products and
services that helps in expansion and growth. It offers more options to business to explore and
develop new and creative products to build good brand image in the minds of customers.
International business uses technology and finance from rich and wealthy countries and raw
materials from poor countries which gives option of utilizing resources from all over the world. .
In today's 21st century business world, to grow business it is important to capture
international market that helps entrepreneurs in gaining more market share and new customer
base for the sale of products and services. From high turnover rate, communication barriers to
money management issues, business entrepreneurs have to tackle different problems and
challenges (Regan and Jesse, 2019). This does not means that running business in international
market is difficult, but it is prominent for companies to overcome challenges and adopt effective
strategies that helps in achieving success.
CONCLUSION
It is concluded from the following study that causation and effectuation are two main
important approaches that help entrepreneurs and businesses to understand that certain strategies
will work or not and also helps in defining the source of issues that hinder growth of business.
For expanding business in global business environment, it is important for businesses to
overcome different challenges to run operations smoothly and effectively. It is concluded that to
survive in the global markets, business needs to comply with different international policies and
laws for better performance and productivity. For improving performance of business and for
building team connection it is essential to train employees for learning new skills and
knowledge. Controlling the effect of management issues in international market helps
organization in rendering better services to their customers by proper management of operations.
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References:
Books and Journals
Andreoni, A. and Chang, H.J., 2019. The political economy of industrial policy: Structural
interdependencies, policy alignment and conflict management. Structural change and
economic dynamics, 48. pp.136-150.
Arato, A. and Cohen, J.L., 2018. Civil society, populism, and religion. Routledge handbook of
global populism. pp.112-126.
Erbaugh, J.T. and Oldekop, J.A., 2018. Forest landscape restoration for livelihoods and well-
being. Current Opinion in Environmental Sustainability, 32. pp.76-83.
Jones, L. and Zeng, J., 2019. Understanding China’s ‘Belt and Road Initiative’: beyond ‘grand
strategy’to a state transformation analysis. Third World Quarterly, 40(8). pp.1415-1439.
Long, H. and Qu, Y., 2018. Land use transitions and land management: A mutual feedback
perspective. Land Use Policy, 74. pp.111-120.
Raffnsøe, S., Mennicken, A. and Miller, P., 2019. The Foucault effect in organization
studies. Organization Studies, 40(2). pp.155-182.
Regan, P.M. and Jesse, J., 2019. Ethical challenges of edtech, big data and personalized learning:
Twenty-first century student sorting and tracking. Ethics and Information
Technology, 21(3). pp.167-179.
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