Causation and Effectuation: A Contemporary Entrepreneurship Report

This report delves into the concepts of causation and effectuation within the realm of entrepreneurship, examining their roles in business operations and decision-making. It begins with an introduction to these entrepreneurial models, then analyzes the relevance of these theories in the context of contemporary business, considering factors such as market uncertainty and global issues like climate change. The report explores the cultural, economic, sociological, and psychological theories of entrepreneurship. It highlights the discovery and creation theories, differentiating between causation (planning) and effectuation (adapting). The report includes an examination of how entrepreneurs must navigate the modern business landscape, emphasizing the importance of strategic planning, resource management, and the adoption of new technologies. Several real-world examples are used to illustrate the application of these concepts. The report concludes with a discussion on the need for entrepreneurs to adapt to changing market dynamics and utilize various models to achieve success, including examples like the Porter five forces model and the STP model. It highlights the importance of flexibility and strategic implementation in achieving business goals, along with the impact of climate change on the business environment.

Causation and
effectuation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically assessing the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
such as climate change................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................6

INTRODUCTION
The approach known as contemporary management enables an individual to examine a
multiple business activities in a workplace. Planning the operations, implementing novel
approaches, and other activities are just a few of the business activities. The company is directly
impacted by the different investors. They assist management in making efficient use of the
organization's resources and monitor the organization's overall performance. This report is based
on the causation and effectuation, causation refers to the process of taking the respective
consequences and choose between the medium to form that effect whereas effectuation means
the emphasis on the possibilities of impacts which can be formed with the support of set of
means. The purpose of this report is to examine and comprehend the various entrepreneurial
models in relation to business operations. The market has been experiencing new economic
trends that have created uncertainty(Galkina and Jack 2022).
MAIN BODY
Critically assessing the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
such as climate change
An entrepreneurship is a process of launching a new business from starting. The
establishment of overall new business can be expressed as a entrepreneurship. When an
entrepreneur develops new ideas and strategies to improve the organization's performance in the
market, they must keep a process in mind. In order to increase revenues in the desired sector, an
entrepreneur must make efficient use of the resources. An entrepreneurship in the twenty first
century enables the various possibilities for the individuals to understand the new methods of
managing an organisation from the world wide view and also understands how to utilize the
latest technology in their enterprises for development.
The summary of the four main theories is discussed below. Cultural, economic,
sociological, and psychological theories are all included . An application of these theories differs
from one another, and the entrepreneur has draw a number of benefits by utilising this theories.
By considering the Saras D. Sarasvathy, provides a brief background on current issues and the
business's uncertainty regarding the causality and consequence. There are broadly two major
theorise of an entrepreneurship that is discovery theory and creation theory(Yu, Tao, Tao and

et. al, 2018). The discovery theory determines the individuals and the possibilities which
influences each other. For an instance, the opportunity comes when an individual tries to find
out those possibilities, similarly because of the existing chances an individual takes up the
activities of an entrepreneur. The critical theory focuses on the creation of an enterprises and also
on the entrepreneurs. This theory depicts the opportunity is subjective in nature and individuals
are ordinary whereas the entrepreneur are the uncertain bearers. The idea of success in the
market is assist by a number of activities. The process that assists in selecting various means to
form plans is known as causation. In contrast, Effectuation is the process of lining up potential
effects so that they can use it effectively.
The procedure of Causation is formal while the other term is effectuation which emphasis
on the creation of new strategise and ideas. Currently, in the dynamic scenario of market mostly
entrepreneur adopt the causation. This also supports in gaining the competitive advantages for
the firm. In this way they can also influence the conditions of new market by rendering the
effective services and goods to the clients. An entrepreneur should set up their goals which they
are desired to achieve in a period of time. They should also form the effective procedure in order
to achieve the goals prior to the timeline. An effectuation is a strategy which is used to focus on
the different objectives. An entrepreneur must establish the set of cautions. The decisions that
are made during this process are logical and have special effects on the choices that are made. An
entrepreneur will become more successful if the right strategies are developed and adopted by
them. The success of the business operations is influenced by a number of interrelated factors.
An approach of causation helps an entrepreneur to form a network by which an
entrepreneur can proceed with the business activities in an effective manner. Through this the
firm can also attain their goals in the market. An entrepreneur should have the maximum
utilisation of resources and also execute the sustainable modification in the society through the
quality services and product in the e market(Schaltegger, Beckmann and Hockerts, 2018). It
includes efficiently carrying out the operations as well as allocating the appropriate technologies
and resources. The entrepreneur must consider these two growth strategies because the business
ventures are fragile. When it comes to achieving the best outcomes for the company, the
entrepreneurial mindset always plays a significant role. There are a variety of skills, such as
decision-making, problem-solving, and leadership, among others. It helps the candidates boost
the company's performance. In the dynamic era, scarcity of resources has been faced by many

organisation those who are working in the various industries. So, the business is required to be
in a condition of profits. Thus, it is a n important factor which makes the sustainability in the
market. An illustration is discussed for the scenario(Johnson and Hörisch, 2022). A startup
company named curry in the hurry is established in order to furnish the better services to the
customers. And it is based on the procedure of causation. An economic theory is used by this
organisation in a view to have a controversy with the different variables. The inevitability is
also improving the organization's performance. They've also added new products to the market.
The company's dominance of the market is aided by its primary focus on universal practices. In
order to effectively improve the critical areas, the organization has implemented new innovation
methods and continuous improvements. It is possible to provide high-quality services to
customers and increase market sales overall.
In the modern era, an entrepreneur must consider the new ideas and the strategies along
with the usage of different possibilities in order to furnish the outcomes in the future. It's the
process of making more money in the long run. The new ideology will assist the entrepreneur in
maximizing their company's profits. The market is full of uncertain circumstances, so the
entrepreneur must be practical .The knowledge's primary focus is on assisting them in achieving
their goals. The market is crowded with strong rivals. The entrepreneurs have the necessary
skills, but they need to concentrate on the strategic outcomes they want to achieve in the market.
On the other hand, the stakeholders can provide the entrepreneurs with direction. They are able
to deliver the best results as a result of this. The majority of customers demand high-quality, new
products, which presents major obstacles for the majority of businesses. The individual must
incorporate new variations into the products and services in order to differentiate them from
rivals(Keskin, Wever and Brezet, 2020).
The Noble, Starbucks, and Barnes chains are the most effective strategic examples of the
new modern world. In order to provoke customers, they have employed a variety of tactics. A
companies used to design the various business strategy in order to influence the customers. The
business strategy depicts the plan of action which outlines the path where the business wants to
take. They have formed an alliance to effectively dominate the market and boost overall profits
in light of the shifting dynamic situation. By looking at how the previous businesses performed,
they have taken the decision-making process more seriously. They have made a few changes that
will help them make their organization easier to work with. In order to achieve better outcomes

in the market, a diverted situation has been created. In order to establish a new and valuable
customer base, both partners have employed novel promotional strategies. Additionally, this
helps them keep their customers. The company always sells high-quality goods, which helps
them keep their good name in the market( Dao, 2022).
The organization has utilized a variety of models in order to offer better products. They
are able to comprehend the market's dynamic forces by effectively utilizing the Porter five forces
model and the STP model .In order to improve the organization's efficiency, the business owners
have adapted to flexibility. When the right strategies are implemented, many businesses are able
to significantly improve overall performance. The Aird Limited, for instance, is very appealing.
Customers receive hand dryers and other goods from them. The new social media platforms that
the company uses will help them engage customers. They have chosen the ideal audience for
their specific goods and services. This enables the company's manager to identify the highest
product demand. They have conducted business in a number of locations.
The change in climate is the major concern which determines the biodiversity loss and
pollution. For example: Since 1990, the amount of carbon dioxide produced by burning fossil
fuels has increased at an average annual rate of 2%, reaching record levels in 2018, due to the
continues expansion of the world economy, a sharp increase in energy consumption in China,
and the deterioration of natural carbon sinks like forests and oceans. It is hardly surprising that
significant amounts of Arctic ice have melted, accelerating glacier movement in Greenland and
now in the Antarctic, which is causing sea levels to rise. Additionally, reducing energy outlook is
climate change. Without including less traditional fossil energy sources like fracking and tar
sands, the amount of carbon that oil wells, gas fields, and coal mines are currently producing is
already about five times the amount of carbon that the atmosphere can still absorb without
exceeding 2°C of global warming. This means that we must leave 80% of the world's fossil fuel
reserves in the ground and stop discovering new ones.
The dynamic environment of the new business includes a variety of evolving
market activities. In order to make the most money possible, entrepreneurs must address any
issues that may arise. The standard of living can also be effectively raised. In this new world of
rising entrepreneurs, there are new ventures that must be properly utilized(Johnson and Hörisch,
2021).

CONCLUSION
According to the analysis of the aforesaid report, numerous conditions and concepts can
assist entrepreneurs in achieving success in the future. In contrast, the entrepreneur in this report
needs to improve their ideology in order to offer better services and products to customers.
Another example is the variety of management models that have been used to solve various
organizational issues(Vuorio and Puumalainen, 2020). This depicts that there are various issues
like change in climate and dislocation which affects the business at extent. Therefore, the
company is dynamic in nature so they can adapt the changes easily and steadily.

REFERENCES
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Yu, X., Tao, Y., Tao, X., Xia, F. and Li, Y., 2018. Managing uncertainty in emerging economies:
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Johnson, M.P. and Hörisch, J., 2022. Reinforcing or counterproductive behaviors for sustainable
entrepreneurship? The influence of causation and effectuation on sustainability
orientation. Business Strategy and the Environment, 31(3), pp.908-920.
Dao, B.A.K., 2022. Causation and effectuation. In Modern Classics in Entrepreneurship
Studies (pp. 209-228). Palgrave Macmillan, Cham.
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oriented ventures: A study of effectuation and causation. Journal of Cleaner
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Schaltegger, S., Beckmann, M. and Hockerts, K., 2018. Collaborative entrepreneurship for
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goals. International Journal of Entrepreneurial Venturing, 10(2), pp.131-152.
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performance: a machine learning approach. In Sustainable Entrepreneurship and
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