Exploring Contemporary Management Issues in the Global Economy

This report provides an overview of contemporary management issues in the 21st century, focusing on the concept of causation and effectuation, and statement revaluation within a dynamic business environment. It addresses the challenges in the contemporary global environment, including political factors, changing consumer preferences, and technological advancements. The report also delves into the concept of new venture creation, emphasizing the importance of a well-defined business plan, tax understanding, insurance, cash flow management, and resource determination. Furthermore, it highlights business management issues in the global environment, such as currency changes, differing policies, and language barriers, concluding that these issues significantly impact business decision-making. Desklib offers a platform to access this report and numerous other solved assignments for students.

CONTEMPORARY
MANAGEMENT ISSUES IN
21st CENTURY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCEPT OF CAUSATION AND EFFECTUATION.............................................................3
STATEMENT REVALUATION WITH DYNAMIC BUSINESS ENVIRONMENT..............3
CONCEPT OF CREATION OF NEW VENTURE....................................................................4
BUSINESS MANAGEMENT ISSUES IN THE CONTEMPORARY GLOABL
ENVIRONMENT........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management is the process of planning, organizing, staffing, directing and controlling a
business in such a way that an organization can achieve their goals (Teece,2018). Contemporary
management refers to a process by which one method, arranges, guides and reaches the
organizational goals to achieve hierarchical goals, Managers at every stage of a company are
responsible for taking advantage of available assets feasibly (Shahzad,2020). This can construct
mastery and potential in determining, examining data and controlling faculty as crucial in
building future progress. Contemporary management may create some difficulties especially
while dealing with different workforce, taking advantage of assets to keep things moral and
making the effective use of technology.
The most important function of contemporary management is to obtain contemporary
management mastery, also you have to make sure that the person must be prepared learn the
performance of employees (Shirokova,2021). This mastery may include hiring employees and
interviewing for n organization.
MAIN BODY
CONCEPT OF CAUSATION AND EFFECTUATION
Causation is a decision-making logic. In which the management projects, execute and accelerate
on their planned decisions that aims at achieving a specific goal. The dialectics of imagining.
that helps an entrepreneur in beginning as it gives a way to manage the future that is
unpredictable is known as effectuation. Causation and effectuation are different alternative point
of views for a businessman to utilize in evolution procedure of venture. Businessman using
causation procedures, firstly interpret their objective, then hunt for an opportunity in developed
industries. The theory of effectuation gives a heavy devising clarification of the procedure of
new venture creation. Entrepreneurs work on this by managing an inquiry of the main concepts
which were given by effectuation theory. This theory shows an analytic disciplined based
approach which helps in understanding how businessman start their businesses under the
conditions of unpredictability
STATEMENT REVALUATION WITH DYNAMIC BUSINESS ENVIRONMENT
Professors have primarily supposed the liveness of artefacts such as market, firm and
organisation. Several writers have commented that definition for such artefact requires a new

approach to the concept of new venture. The dynamic of business management issues in the
contemporary global business environment. Some important dynamics of business environment
are as follows:-
Political factor — Any political instability in the developed economy like UK can consequently
effect world. The country's government handles all the production and national fair-weather
policies of government affect the business in each and every possible way.
Change in taste and preference ;- demand and supply chain clearly depends upon the consumer
choice. The taste and preference can changed unpredictably (Melon.2020). It mainly depends on
culture, colour, rituals, trade, income and personal choice.
Change in technology :- The technology in the world is changing rapidly. The innovation in
product changes its demand overwhelm. It directly affects the sale of the product.
CONCEPT OF CREATION OF NEW VENTURE
New venture creation is a tough process whose initial stage starts with a person's aspiration to
use a possibility and involves keeping together assets to make worth from the chance. Some
businessman can start a new business but some other businessman never use the discovered
opportunities (Indudewi,2021). While many new businessman's locate the same assets, some
entrepreneur businesses are successful whether as others business barely touches the break even
point. There are five major components when creating a new venture:-
Creating a clearly defined business plan:- Planning refers to deciding in past what to do and how
to do also it bridges the gap between where we are and where we want to be. Planning means
setting objectives and targets and formulating an action plan to achieve them. It is one of the
common aspect of building a new venture with a proper plan for business. The plan must
highlight the goals, mission and the overview of the business. The details related to marketing,
financing and employment will give a new shape to the business. Consulting with professionals
is considered as a wise idea during the planning stages of the venture. There are many programs
to up skill your problem-solving skills (Hernández-Linares.2021). The trained professionals are
experienced and can help in analysing the various elements of the business plan.
Understanding about tax – the basic understanding of taxation policy that your business that your
organisation is going to pay is very necessary no tax planning can give you huge headache and
stress in future . Tax depends on the type of venture you are opening. All countries have different

tax policy (Ince, 2020). Clearly understanding of tax and how it applies on your firm is critical.
For that you have to meet an accountant who can give you clear tax planning (Hauser, 2020).
Invest in insurance of right business- not only insurance is main part of or requirement of start-
up. But insurance can help in prevention of risk. Example — insurance for employees/workers.
Be mindful of financing and cash flow — when planning a business start-up you must think or
plan of cash flow of business
Determine labour, land and other resources- Before starting a new venture you should determine
the number of employees that will require in the company's operation. This work can be stressful
at first and might require corrections at first (Ganesha,2020). A good suggestion is the one that
tells how businesses operate and create difference.
Another useful component is its location although many small business don't require a tangible
office to operate or sell its products or service. So these ventures should respect the balance that
investing in an ideal location brings in an organization (Asemokha,et.al 2021).
BUSINESS MANAGEMENT ISSUES IN THE CONTEMPORARY GLOABL
ENVIRONMENT
Business that deals at the global level faces the certain issue that arises in the global
environment. As the business environment is dynamic in nature it clearly indicates that, there are
large number of changes takes place in the environment that impacts the business. In similar
manner, the global environment is highly dynamic in nature that provides the direct impact over
the business management. Here is the description of the issues in the contemporary global
environment that impacts the business.
Changes in currency- The business that performs the operations at the global level has the threat
of changes takes place in the value of currency as this directly provides the impact over the
performance of the business. If the value of the currency falls down at the international market.
Then the profit that has been earned on exports reduces. This leads to affect the profitability of
the business. Thus, this has been considered as one of the issue in contemporary global
environment that affects the business (Grant, 2021). Therefore, a keen analysation over the
international market has to be made so, the information regarding the changes can be known.
Different policies- All the countries has their own different policies of performing trade. Some
countries have the smooth policy while some has the rigid. This disturbs the management
structure in the business. It is mandatory to analyse the different policies of t6he countries in

which the business performs the operations as this provides the direct impact over the decision-
making of the company. If the policies of the government has not been followed by the business
in contemporary global environment (Kotabe and Helsen, 2020). Then, it leads to impose the
heavy penalties on the business. As a result, the business has to have the loss.
Language barriers- This leads to the ineffective flow of communication at the global platform.
As different country has the different language and many-times this act as a barrier in performing
the operations of the business. There is a high possibility that the customers does not understand
the language of the country from which the products have been purchase (Weiss, 2021).
Therefore, the business must ensure the delivering of information of products and services in
different languages so, the customers that are the part of business can effectively understand.
CONCLUSION
From the above report it has been concluded that, contemporary management issues that
arrives from the changes takes place in the business environment creates the large number of
challenges for the business management. Also, the contemporary global environment creates the
large number of issues in the business. Furthermore, the report has described that, the
contemporary issues affects the decision-making of the business that can leads to provide the
higher impact over the management decisions of the business. Apart from this, the report has
highlighted the concept of creation of the new venture in this contemporary environment.
Various factors has to analyse in order to start the new venture so, the issues of contemporary
environment does not provide the impact over the business.

REFERENCES
Books and Journals
Asemokha, A. and et.al 2021. Business Model Innovation in the Internationalization of SMEs:
The Role of Causation and Effectuation.
Grant, R.M., 2021. Contemporary strategy analysis. John Wiley & Sons.
Haugane, H.K. and Saastad, K., 2020. Entrepreneurial Passion in a Venture Creation Program: A
Mixed Method Study(Master's thesis, NTNU).
Hauser, A., Eggers, F. and Güldenberg, S., 2020. Strategic decision-making in SMEs:
effectuation, causation, and the absence of strategy. Small Business Economics.54(3).
pp.775-790.
Hernández-Linares, R. and et.al 2021. Dynamic capabilities and SME performance: The
moderating effect of market orientation. Journal of Small Business Management.59(1).
pp.162-195.
Ince, I. and Hahn, R., 2020. How dynamic capabilities facilitate the survivability of social
enterprises: A qualitative analysis of sensing and seizing capacities. Journal of Small
Business Management. 58(6). pp.1256-1290.
Indudewi, Y.R., 2021. Perceived Learning Outcomes and Team Behavior in Entrepreneurial
Venture Creation University Ciputra Surabaya.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Melonek, M., 2020. To Be Is to Do: Exploring How Founder Social and Role Identities Shape
Strategic Decisions in New Venture Creation Process. Junior Management Science.5(4).
pp.452-476.
Shahzad, M. and et.al 2020. Exploring the influence of knowledge management process on
corporate sustainable performance through green innovation. Journal of Knowledge
Management.
Shirokova, G. and et.al 2021. Effectuation and causation, firm performance, and the impact of
institutions: A multi-country moderation analysis. Journal of Business
Research.129.pp.169-182.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of
Management & Organization.24(3). pp.359-368.

Weiss, J.W., 2021. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.