Contemporary Management Issues: Effectuation and Causation in Entrepreneurship

This report analyses the effective research that will be helpful in analysing certain factors that are connected to the company Sarasvathy. The essay also concluded that the businesses that used the effectuation processes could lead the businesses to identify the new opportunities and find the threats that could lead to the their downfall.

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
The term Entrepreneurship could be considered as the the trait by which the individual could
improve on the idealism and the creativeness that will facilitate a business organisation and its
activities. In order to meet with the trending things and the entrepreneurs will also be able to
offer products that satisfy the demands of the people(Grégoire and Cherchem, 2020). This report
analyses the effective research that will be helpful in analysing certain factors that are connected
to the company Sarasvathy. That also helps in the analysing of the new venture which will be
developed to be able to give support by the insights of the business.
MAIN BODY
The entrepreneurship could be the individuals journey to find the best and innovative opportunity
and involve it with the person's own skills and the creativity. The are different views of the
people and skills which help them to contribute to the internal factors of the businesses including
the arguments and the debates that are very much related to the entrepreneurship. The company
Sarasvathy could be using the basis of entrepreneurship to perfect their venture and provide the
structure that is key to the formulation of the business activities. The company can make the use
of the effectuation and the causation that will be helpful in the company becoming profitable or
even end up giving losses. The term causation is the fact that states the purpose when the
operations of the business activities are met and the drivers of those business activities are given
the preference and by the individual or the entrepreneur is also impacted. The other term that was
mentioned above was the effectuation which could be stated as the process which makes the
uniqueness in the services which could be the reason to give the comparison to the people(Guo,
2018). For the company Sarasvathy will be needing to be aware of the trends and the new
opportunities to be able to get all the benefits of accurately running the businesses. Causality
could be considered as a specific situation by which the entrepreneur puts more emphasis on
personal knowledge in order to make his or her work better. Whereas the effectuation is the
situation in which a company owner seizes the opportunities available in the current market that
they are targetting. Entry into force helps entrepreneurs gain business impact and adopt key
considerations to assess certain aspects that can be controlled and monitored in times of
uncertainty. This ensures that all business operations are carried out in the right way through
changes in ideas and degrees applied to the business, which is also a proactive approach.
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There are values and ethics that are very different for all the entrepreneurs and those are also
very unique among the normal people. These also determines the ways by which the structure of
the business is set and the environment is created for the business activities to take place(Karami,
Wooliscroft and McNeill, 2020). The past experiences also gives the proof of how the businesses
operate through the help of effectuation and causation in the past. These are also very depended
on the mindset of the people that are determines how well the entrepreneur does improve the
businesses and it functioning. This is also a very individualistic behaviour which is why the
many entrepreneurs didn't take into consideration of the fact that the decisions are taken right or
wrong. It is also possible that those people are not a risk taker and that may become an issue for
them to become a good entrepreneur(Lee, Gloviczki and Blei, 2019). So to deal with this fact the
company Sarasvathy should be able to take good decisions and thoughts that would be able to
keep the business sustainable and will help the business in staying relevant and fighting all the
competition that will be coming in their path. The company can use the proper technologies and
take the innovation to their use to see if the business can take special steps to grow into their
business and the activities to be able to expand to its potential. This can help the businesses to be
more confident in the ways of conducting the business. This confidence will help their passion to
be relived and then will be important for the entrepreneur to be at their best while the
formulation of the strategies.
Entrepreneurship is one of the aspects of successfully carrying out modification and
transformation and has become an important conception in businesses. Entrepreneurs can gain
some leeway in the business situation by approaching specific passages within companies.
Thanks to modern entrepreneurs, there are various pioneering concepts in the industry. Today,
however, businesspersons are not seeking specific approaches that will help create opportunities
for their respective businesses to achieve more growth and success in the modern era. To secure,
the approach can give entrepreneurs great opportunities. Traditional companies are inflexible and
do not accept change(Naudé, 2022). They do not even properly have approached contingencies.
These days, businesses need to focus more on risk-taking and contingency approaches to gain
competitive advantage in large market areas and compete in the market over the long term. In
relation to Sarasvathy, there and opportunities and threats that will influence the business to
either succeed or fail. The effects could be used by the people to be able to initialise the
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investments and the other features. The reasons behind the threat to the effectuation is the tools
that the companies are getting to explore the business opportunities.
For companies, the entrepreneurs have a platform which could be used to conduct their business
activities and stay relevant in the industry. The businesses are considered as a failure or a success
on the basis of how they work in the relevancy of the industry and how they deal with the threats
and the opportunities (O’Cass and Wetzels, 2018). The main consideration of the threats that are
present to the effectuation processes themselves which are used to inquire about the possibility of
concerns that are present in the business environment. In today's business environment, the
effectuation and the causation are used to be able to start a new business venture and then stay
sustainable for a very long period. The productivity of the businesses also increases very much
after these processes.
The Learning from the concepts of effectual reasoning decides whether the presence of the
companies are in the non-existent or not-yet-existent markets. Effectuation considers the means
as to be already given and works on choosing between possible impacts that can happen from
that set of means. The process of the effectuation is depended upon the actor, meanwhile the
process of causation is depended on the impact. Few of the features of the effectuation processes
are: selection based on the losses and risks, success at achieving contingencies, and definitive
assumption of changing, non linear, and bionomical environments. The researchers March,
Mintzberg, and Weick made efforts to explore the identification of relation between their work
and the related theory of effectuation. Modern experiential theories that are not of the
conventional causation models could be beneficial too. The four principles of effectuation are
affordability in the losses, thought alliances, utilisation of contingencies, and the predicability of
the unseen future. Based on these principles, a the theories were made and these theories
considered the role of effectuation at different stages including the economy, the market or
business industry, the organisation, and the ones that make the decisions. The theory of
effectuation taken from this analysis could also say that the entrepreneurship for a company is an
effectuator.
So much efforts that could be needed in the administration through the effectuation and those
could be considered for the similarity to the causation processes. These similarities could be the
directing the efforts to stay sustainable in the present market scenario. This also becomes the
feature in improving the development aspects of the company. As this is the way by which the
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businesses could use the several components to get assistance for the beginning of the
undertaking. In the view of taking the consideration of working with the entrepreneur the thought
in people's mind is that the they can easily take advantage in the market and that allows them to
be stable.
There are many companies that undertake the strategic action plans with multiple companies that
help accelerate the total turnover and profitability of the entire organization, giving other
companies fierce competition by establishing higher standards in the market. It also enables the
company to develop a good name in the market, as it establishes the right standards for achieving
a proper position in the target market (O’Gorman, and e.al., 2018). This set standard also means
that the organization works according to the latest trends. As customers request more and more
of the latest trending products, they need to have to adopt different technologies to manufacture
our products and stay in the market for a long time. Entrepreneurs must have creative ideas and
thoughts to use their resources in a highly effective and efficient way. This gives you benefits
and allows you to consider both impact and causation.
The financial aspects should also be taken into consideration for the firms. The financial stability
could also be another reason that would influence the success getting retained for a long amount
of time. The decisions that are the based on the financial aspects will be able to provide them
with the emphasis on the short and the long term goals and in turn will successfully give them
the profitability in the organisation. This can be also the reason why the in the traditional
industries and the marketplace were keeping the full focus on the profitability than anything else.
Meanwhile in the current business scenarios the aspects related to the businesses are far more
advanced and creative, and hence they have kept on finding the needs and wants of the
customers with a sole purpose to get better results which leads in making higher profits and
revenues. Identifying and finding many creative and important business thoughts are critical for
the companies to end up as a global platform leader(Radosavljevic, 2022). In these situations the
business organizations may find the opportunities to indulge in the functional work environments
in due to accomplish the goals and objectives of the business organization. As the businessmen
use the effectual and literal ways to notice the company's particular goals and objectives. The
people who are more centred towards the work environment and are employed are able to
express sentiments and ideas that could help generate more profit In order to provide unique
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products to customers and advance business with various technologies, it is very important for
companies to obtain progressive and new ideas(Sawalha, 2020).
CONCLUSION
The above essays conclude that the entrepreneur is very important person and the
entrepreneurship is a very known platform by which the services could be provided to the people
and make profits from them. The essay also concluded that the businesses that used the
effectuation processes could lead the businesses to identify the new opportunities and find the
threats that could lead to the their downfall. The process of effectuation and causation could lead
to strategising proper business plans and in a way be innovative for a long time in the industry.
The essay also covered the aspects that takes finance as a very important factor while dealing
with the competitive environment for the businesses.
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References:
Books and Journals
Grégoire, D.A. and Cherchem, N., 2020. A structured literature review and suggestions for future
effectuation research. Small Business Economics, 54(3), pp.621-639.
Guo, R., 2018. Effectuation, opportunity shaping and innovation strategy in high-tech new
ventures. Management Decision.
Karami, M., Wooliscroft, B. and McNeill, L., 2020. Effectuation and internationalisation: A
review and agenda for future research. Small Business Economics, 55(3), pp.777-811.
Lee, B.B., Gloviczki, P. and Blei, F. eds., 2019. Vascular Malformations: Advances and
Controversies in Contemporary Management.
Naudé, P., 2022. Good: What “Good” do we Create?. In Contemporary Management
Education (pp. 33-49). Springer, Cham.
O’Cass, A. and Wetzels, M., 2018. Contemporary issues and critical challenges on innovation in
services. Journal of Product Innovation Management, 35(5), pp.674-681.
O’Gorman, and e.al., 2018. Contemporary issues in the management of grassroots football.
In Routledge Handbook of Football Business and Management (pp. 56-70). Routledge.
Radosavljevic, G., 2022. CONTEMPORARY ISSUES IN ECONOMICS, BUSINESS AND
MANAGEMENT-EBM 2022. Ekonomski Horizonti, 24(1), pp.105-106.
Sawalha, I.H., 2020. A contemporary perspective on the disaster management
cycle. foresight, 22(4), pp.469-482.
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