Contemporary Management Issues in the 21st Century: An Analysis

This essay delves into the multifaceted world of entrepreneurship, examining its pivotal role in the 21st-century business landscape. It explores the core concepts of effectuation and causation, as defined by Sarasvathy, and their impact on the formation and success of new ventures. The essay analyzes how entrepreneurs navigate market trends, innovate, and address consumer needs, with a focus on the interplay between individual skills, values, and decision-making processes. It contrasts traditional business models with the dynamic approaches required for contemporary success, emphasizing the importance of risk-taking, contingency planning, and strategic adaptability. Furthermore, it highlights the significance of fostering a positive working environment, embracing technological advancements, and developing comprehensive business plans to achieve long-term sustainability and competitive advantage. The essay also touches upon the influence of financial decisions and the importance of aligning business practices with societal values to achieve global success.

Contemporary
Management Issues in
the 21st Century

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Entrepreneurship refers to the ability and readiness of an individual who develop,
organise and focus more on innovation and creativeness within the business organization. In
order to meet the recent trends of the market entrepreneurship plays a significant role towards
offering the innovative products and services accordingly in the big sales outlet (Manley and et.
al., 2021). They can offer better products and services to the consumers by solving the needs of
the target market which comply with business enterprises. This particular essay will give more
focus on effective analysis of the certain factors in the research which is done by Sarasvathy that
is dealing about the effects as well as causation. In addition to this, this essay will also analyse
the development if the new venture is being supported by the insights of the business in the
traditional institutions.
MAIN BODY
Entrepreneurship is defined as an individual which leads them to open new business
enterprises by acquiring innovation and creativity and have certain skills which helps them to
work in the right direction as well as in appropriate manner. Every individual has certain point of
views which may lead to conflicts, debates, arguments which have visibility in the internal part
of the business that are related to the entrepreneurship. With respect to the Sarasvathy, there are
major components in the formation of venture which is giving structure that are effectuation and
causation. This can lead the venture to gain profit as well as loss during the time of operation
(Bruton, Sutter and Lenz, 2021). Causation refers to the scenario in which the purpose of the
business operations are met. and facilitation purpose is also considered when the needs of the set
and suitable drivers are encouraged and through this the individual are also effected. In addition
to this, effectuation is related with the process through which the unique services are offered in
comparison to the present time to the individuals. In this aspects, the trends have to be observed
and fitted by the entrepreneur so that they can have proper and positive effects while running the
particular business venture of the monetary fund.
Causation is the particular position or a situation through which an entrepreneurs gives
more emphasise on the knowledge of an individual in order to make them work productively and
smoothly. Whereas effectuation is the situation in which owner of business enterprises grab the
opportunities which are available within the present targeted market (Sardari, 2022). It is
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completely dependent upon the business working which is based on the venture abilities that is
focusing more on controlling the specific event or sudden situation. Effectuation helps the
entrepreneurs to have the effects from the business and take the major consideration to evaluate
certain aspects which can be controlled and monitored in an uncertain situation. Through this all
the business operations can be conducted in an appropriate manner through the change in ideas
and degree that is applicable in business which is also an assertive approach.
There are different entrepreneurs in the business who have their own values, ethics,
policy as well as procedure that is being adopted by the causation. During the past time also, on
the basis of effectuation and some on the basis of causation, all the business operation are
performed. These aspects are also related on the mindset and skills of the individuals on the
different segments while giving attempts and exploring. As the business are conducted by the
individual in a very simple manner and they don't even take into the consideration of making
better decisions and choices nor they are the risk taker in the market (Reutlinger, 2018). In order
to lead the business in appropriate and right approach various organisation make better choices in
the market to gain competitive advantage. With the changing time the business enterprises are
making correct decision they are setting and moving forward in order to get higher growth and
success within the market. Due to this the entrepreneurs are becoming more confident resilient
and passionate about the task given through which they can ensure effectiveness and efficiency
which can be retained. By this the individual can get new ideas in order to meet the desired goals
in the market by becoming the risk taker too.
Entrepreneurship is one of the aspects leading towards having the revolution and
transformation in an appropriate manner which has become a important concepts in the business
organisations. Entrepreneur bring revolution by introducing innovative ideas, products and
services within the economy as per the needs and demands of the customers. The skills,
knowledge and experience while working with other entrepreneur helps them to understand
market easily and gain competitive position within the market. The entrepreneurs can get
certain scope in the business environment by accessing certain particular situation in the business
(Liu, 2019). There are various different concepts in the business due to modern entrepreneurs
which is path breaking. But nowadays the entrepreneur are not exploring certain approaches
that helps them to bring opportunity to the particular business in order to get higher growth and
success during the present time. To ensure the higher growth and certain opportunity in the
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business environment approaches can lead the entrepreneurs to avail them with great
possibilities. As the traditional business don't have flexibility so they don't accept the change.
They even don't follow the contingency approach in an appropriate manner. In recent times, the
business should give more focus on risk taking and contingency approach to gain competitive
advantage in the large market area in order to sustain for the long time period within the market.
In the particular business there are lots of opportunities and risk that leads the business to
gain either success or failure. This also initialise the effects on the operation and on investment
stages through which the entrepreneurs have high threats and minimum profits (McGowan,
2018). This results on causation from the start of the business. The main reason behind this threat
to that effectuation which is a major tool which helps the business to explore the opportunities
can be moved in order to start the new business venture in the economy in respect to get the
success for longer time period.
The different number of business organisation through effectuation which is being chosen
and with similarity to the causation that is leading in order to introduce the new venture in the
present market time. This is also helping in achieving the success through various aspects that
are more focusing on the developmental of getting support and assistance in the starting period
of the venture. While working with the different entrepreneurs they can leverage in the market
which allows them to have effective sociability (Julien, 2018). For example: there are different
business enterprise who are using strategic approaches with two or more business that helps in
increasing the overall sales of the company and profitability which gives tough competition to
the other enterprise by setting the greater benchmark within the market.
Financial decision which are taken by the business entrepreneur give focus on both short
and long term to increase the profitability and benefits of the company. But in traditional market
their major target and consideration was the overall profitability of the firm (Bapat, 2019).
Generating profit was the sole aim of the business and they used to perform the work
accordingly. But today the business are being more innovative and dynamic, so they keep on
experimenting in order to be unique and get better results which leads in generating high profits
and revenues. It is very important for the business organisation to make and implement effective
as well as strategy business plan so that they can lead in the international platforms also so that
they can collaborate with the cultural, ethical values of the society overall. Due to this the
business enterprise can have chance to participate in the working environment to get the goals
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and objectives of the business. Through the entrepreneurs are motivated and have willingness to
work in a productive and appropriate manner with the purpose of meeting the definite goals and
objectives of the business. For example, Apple is the a very large IT company which gives more
focus on maintaining positive working environment and the employee who are working their can
present their views and opinions that assists in achieve more profit. It is very important for the
business enterprise to be innovative and get new ideas in order to provide customers with the
unique products and advance their business with different technologies.
CONCLUSION
From the above essay it can be concluded that entrepreneurship plays a very crucial role
in the global business that helps in growing and providing quality services to the customers in the
market. This also ensure that effectuation leads the business to explore new opportunities and
respond towards the failures by overcoming and eliminating. This can be done by adopting new
business plan and implementing the strategies to generate more profits. This will lead the
business towards long term sustainability and provide with innovative products through with
customers retention can be increased.
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REFERENCES
Books and Journals:
Bapat, D.M., 2019. Segmenting young adults based on financial management behaviour in
India. International Journal of Bank Marketing.
Bruton, G., Sutter, C. and Lenz, A.K., 2021. Economic inequality–Is entrepreneurship the cause
or the solution? A review and research agenda for emerging economies. Journal of
Business Venturing, 36(3), p.106095.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Liu, Y.T., 2019. Exploring the role of original aspiration in effectuation tendency. International
Entrepreneurship and Management Journal, 15(3), pp.977-1016.
Manley, and et. al., 2021. Essential new PLS-SEM analysis methods for your entrepreneurship
analytical toolbox. International Entrepreneurship and Management Journal, 17(4),
pp.1805-1825.
McGowan, P., 2018. The impact of effectuation on small firm buying decisions. IMP Journal.
Reutlinger, A., 2018. Extending the counterfactual theory of explanation. Explanation beyond
causation: Philosophical perspectives on non-causal explanations, pp.74-95.
Sardari, M., 2022. Relationship Between Effectuation/Causation and New Venture Performance:
A Situational Perspective. In Academy of Management Proceedings (Vol. 2022, No. 1,
p. 17899). Briarcliff Manor, NY 10510: Academy of Management.
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