Contemporary Management: Examining Causation and Effectuation Concepts
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This essay examines the concepts of causation and effectuation within the context of contemporary management issues in the 21st century. Causation involves a predetermined approach to achieving goals, while effectuation focuses on utilizing available resources to explore various possibilitie...
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Contemporary
Management Issues in
the 21st Century
Management Issues in
the 21st Century
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Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Causation and Effectuation.........................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Causation and Effectuation.........................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Effectuation basically refers to the theory of process which details about the procedure
which entrepreneurs have used to create ventures into the new form. It is a logic of thinking
which is discovered through scientific research and it is used by expert entrepreneurs for building
the successful ventures. When value needs to be created for the business then entrepreneurs have
the choice between thinking ways whether it can be casual and effective thinking(Bilgic., 2020).
Causation refers to the thronged for influencing one variable to another and it is a type of avenue
where entrepreneurs need to have aim for goals into predetermined manner and then finding out
the ways to reach towards the goals. The report basically consist of effectuation and causation
concept for venture creation and also about assumptions, features of causation through STP
Kotler. In addition to this, the report will cover analysis about features and principles of
effectuation with support of an entrepreneur named as U-Haul Chef.
MAIN BODY
Causation and Effectuation
Causation basically refers to that approach where businessman aims for the goals into
predetermined manner and and then finding out the ways to reach towards the goals. It is
basically the throng of influencing another variable where also the cause of incidence of another
variable or the first variable comes into the existence. Causation also refers to the results of
others which is directed by the one event and cause where one event is identified as the
consequence of another one and act as the basic notion of effect. Effectuation basically refers to
the kind of approach where businessman aims for those resources which are in their hands where
they aims for materialising into lots of goals which are not predefined into the result oriented
manner(Husák and et.al.,2020). It is explained in the reasoning form or solving problems which
future assumption in the changeable manner but it can be commanded by actions of human.
Effectuation is important for an entrepreneur because it provides an individual with complete
dissimilar perspective in the steps of three fundamental the process which includes setting of
goals, use of resources and goal setting.
Effectuation basically refers to the theory of process which details about the procedure
which entrepreneurs have used to create ventures into the new form. It is a logic of thinking
which is discovered through scientific research and it is used by expert entrepreneurs for building
the successful ventures. When value needs to be created for the business then entrepreneurs have
the choice between thinking ways whether it can be casual and effective thinking(Bilgic., 2020).
Causation refers to the thronged for influencing one variable to another and it is a type of avenue
where entrepreneurs need to have aim for goals into predetermined manner and then finding out
the ways to reach towards the goals. The report basically consist of effectuation and causation
concept for venture creation and also about assumptions, features of causation through STP
Kotler. In addition to this, the report will cover analysis about features and principles of
effectuation with support of an entrepreneur named as U-Haul Chef.
MAIN BODY
Causation and Effectuation
Causation basically refers to that approach where businessman aims for the goals into
predetermined manner and and then finding out the ways to reach towards the goals. It is
basically the throng of influencing another variable where also the cause of incidence of another
variable or the first variable comes into the existence. Causation also refers to the results of
others which is directed by the one event and cause where one event is identified as the
consequence of another one and act as the basic notion of effect. Effectuation basically refers to
the kind of approach where businessman aims for those resources which are in their hands where
they aims for materialising into lots of goals which are not predefined into the result oriented
manner(Husák and et.al.,2020). It is explained in the reasoning form or solving problems which
future assumption in the changeable manner but it can be commanded by actions of human.
Effectuation is important for an entrepreneur because it provides an individual with complete
dissimilar perspective in the steps of three fundamental the process which includes setting of
goals, use of resources and goal setting.

There are certain principles of causation which are significant from perspective of
business and it is explained into the following ways:
Aim for maximisation of expected returns and optimal decision
Exposition in the competitive manner
Pre-existing knowledge exploitation
Aim for predictable aspects of future in uncertain manner
These principles are important because it indicates the existence of relationship into logical
manner between two events whether it can be cause and effect and act as a order between them.
There are certain principles of effectuation which act as support system into the context
of running of business into smoother ways.The main principles of effectuation defined into the
following ways:
Birds in hand Principle: This is a principle where it is necessary to initiate with those
things or resources which are in the hands of a individual(Johnsen.,2019). Questions
which are related to this principle that includes whom do you know, who are you, other
means do individual have access to right now or what capabilities
Lemonade Principle: Unpleasant surprises will occur in those conditions where the
person has relationship with uncertainty on higher level. It is necessary to have unplanned
things rather than planning for all types of scenarios of alternative nature and utilise into
form of clues to the current ideas into pivot manner.
Crazy Quilt Principle: Partnership should be build up with those person who has
selected the idea instead of selecting the people by their own choice. The chances of
success increases in those conditions when people are as crazy about the idea with who
they have partnered.
Pilot in the plane Principle: Under this principle, aim for those activities which are in
total control and also have higher chances for bringing out the desire results. World view
in an effectual situation is rooted within this belief that the future is made.
Affordable loss Principle: At every step, the risk can be reduced through understanding
what an individual can lose(Newby and Davie,., 2016). It could be of any means whether
it is financial and reputation. It is important to make sure that loss can be afforded in
those condition when the upcoming action runs the risk of losing one of the resources.
business and it is explained into the following ways:
Aim for maximisation of expected returns and optimal decision
Exposition in the competitive manner
Pre-existing knowledge exploitation
Aim for predictable aspects of future in uncertain manner
These principles are important because it indicates the existence of relationship into logical
manner between two events whether it can be cause and effect and act as a order between them.
There are certain principles of effectuation which act as support system into the context
of running of business into smoother ways.The main principles of effectuation defined into the
following ways:
Birds in hand Principle: This is a principle where it is necessary to initiate with those
things or resources which are in the hands of a individual(Johnsen.,2019). Questions
which are related to this principle that includes whom do you know, who are you, other
means do individual have access to right now or what capabilities
Lemonade Principle: Unpleasant surprises will occur in those conditions where the
person has relationship with uncertainty on higher level. It is necessary to have unplanned
things rather than planning for all types of scenarios of alternative nature and utilise into
form of clues to the current ideas into pivot manner.
Crazy Quilt Principle: Partnership should be build up with those person who has
selected the idea instead of selecting the people by their own choice. The chances of
success increases in those conditions when people are as crazy about the idea with who
they have partnered.
Pilot in the plane Principle: Under this principle, aim for those activities which are in
total control and also have higher chances for bringing out the desire results. World view
in an effectual situation is rooted within this belief that the future is made.
Affordable loss Principle: At every step, the risk can be reduced through understanding
what an individual can lose(Newby and Davie,., 2016). It could be of any means whether
it is financial and reputation. It is important to make sure that loss can be afforded in
those condition when the upcoming action runs the risk of losing one of the resources.
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In this competitive world, companies or businesses have to face certain kinds of issues
which includes global uncertainty, technology, gender inequality and diversity as well. These
issues can be resolved through applying the concept of causation and effectuation as well. In
order to study the market into appropriate manner so that business issues can be resolved into
positive manner so it can be easily understood through concept of STP which was given by
Kotler. Segmentation, targeting and positioning are the parameters which act as support system
in terms of solving the issues of business (Olivares and Trevino-Martinez., 2015).There are
certain features of causation which help in terms of resolving the issues of business into effective
manner which includes time order, co-occurrence, preceding causation, interaction, sufficiency
and alteration. These features help in terms of resolving the issues of business.
There are certain assumptions related to causation and these are the assumptions which is
about in which manner different parts of the world work and about the conditions under which
these can be changed. It is usually stated in terms of predictive manner and this can be
understood through an example where casual assumption would be that if individual has used
learning contracts then this will increases the students self- directedness. The effectuation
process can be understood through the example of chef where the host has asked the chef to look
through the cupboards in the kitchen for possible utensils and ingredients and then cook for the
meal. Based on the given menu and utensils, chef has to imagine possible menus and then
prepare the meal. It is basically the process of effectuation which begins with the given
ingredients and utensils and then aims for preparing one of the many possible desirable meals
with them. This is the best way to understand this concept with the cooking process. It has been
observed that there the concept of U-Haul was provoked by the need.
There are certain features of effectuation which includes they focused on the available
resources, they don't need support system in order to start from zero level and also they can stand
in every kind of competitive situation. It has been observed that certain assumptions of
effectuation also help businesses in terms of resolving issues into effective manner (Proietti and
et.al., 2019).It includes unjustified optimism in the abilities of an entrepreneur, lack of viability
of non predictive control , restrictive rather than creative aspects of means driven action, lack of
novelty of the affordable loss heuristic, unspecified sources of value creation, assumption rather
than explication of artifact success, trial and error and process diagram.
which includes global uncertainty, technology, gender inequality and diversity as well. These
issues can be resolved through applying the concept of causation and effectuation as well. In
order to study the market into appropriate manner so that business issues can be resolved into
positive manner so it can be easily understood through concept of STP which was given by
Kotler. Segmentation, targeting and positioning are the parameters which act as support system
in terms of solving the issues of business (Olivares and Trevino-Martinez., 2015).There are
certain features of causation which help in terms of resolving the issues of business into effective
manner which includes time order, co-occurrence, preceding causation, interaction, sufficiency
and alteration. These features help in terms of resolving the issues of business.
There are certain assumptions related to causation and these are the assumptions which is
about in which manner different parts of the world work and about the conditions under which
these can be changed. It is usually stated in terms of predictive manner and this can be
understood through an example where casual assumption would be that if individual has used
learning contracts then this will increases the students self- directedness. The effectuation
process can be understood through the example of chef where the host has asked the chef to look
through the cupboards in the kitchen for possible utensils and ingredients and then cook for the
meal. Based on the given menu and utensils, chef has to imagine possible menus and then
prepare the meal. It is basically the process of effectuation which begins with the given
ingredients and utensils and then aims for preparing one of the many possible desirable meals
with them. This is the best way to understand this concept with the cooking process. It has been
observed that there the concept of U-Haul was provoked by the need.
There are certain features of effectuation which includes they focused on the available
resources, they don't need support system in order to start from zero level and also they can stand
in every kind of competitive situation. It has been observed that certain assumptions of
effectuation also help businesses in terms of resolving issues into effective manner (Proietti and
et.al., 2019).It includes unjustified optimism in the abilities of an entrepreneur, lack of viability
of non predictive control , restrictive rather than creative aspects of means driven action, lack of
novelty of the affordable loss heuristic, unspecified sources of value creation, assumption rather
than explication of artifact success, trial and error and process diagram.

These are the assumptions of effectuation which are significant from perspective of
business. So features and assumptions of both effectuation and causation are very significant in
terms of achieving solved issues of business (Sušanj Šulentić and et.al., 2017). So these two
processes are very important from perspective of businesses growth and development as well. As
these two concepts are not very effective in terms of long term manner but up to a certain extent
they perform into positive manner for resolving the issues into positive manner.
CONCLUSION
It has been concluded from above report that causation and effectuation are the
approaches which supports into the context of solving the problems into effective manner. It has
been determined that these approaches have dissimilar patterns of solving the issues of business
within the organisation. It has concluded that under approach of effectuation the issues can be
solved through supporting parameters and available resources. Under the case of approach of
causation, it is important to determine the goals into appropriate manner and then actions need to
be taken into result oriented manner. It has been observed that mainly principles which support
in terms of taking the right approach into effective manner for doing the business. There are
certain key features and assumptions of causation and effectuation which act as support system
in terms of resolving the issues into effective manner. There are different examples of both these
concepts which help in terms of understanding the concept into more deeper manner.
business. So features and assumptions of both effectuation and causation are very significant in
terms of achieving solved issues of business (Sušanj Šulentić and et.al., 2017). So these two
processes are very important from perspective of businesses growth and development as well. As
these two concepts are not very effective in terms of long term manner but up to a certain extent
they perform into positive manner for resolving the issues into positive manner.
CONCLUSION
It has been concluded from above report that causation and effectuation are the
approaches which supports into the context of solving the problems into effective manner. It has
been determined that these approaches have dissimilar patterns of solving the issues of business
within the organisation. It has concluded that under approach of effectuation the issues can be
solved through supporting parameters and available resources. Under the case of approach of
causation, it is important to determine the goals into appropriate manner and then actions need to
be taken into result oriented manner. It has been observed that mainly principles which support
in terms of taking the right approach into effective manner for doing the business. There are
certain key features and assumptions of causation and effectuation which act as support system
in terms of resolving the issues into effective manner. There are different examples of both these
concepts which help in terms of understanding the concept into more deeper manner.

REFERENCES
Books and Journals
Bilgic, E., 2020. Human resources information systems: a recent literature survey. Contemporary
global issues in human resource management.
Husák and et.al., 2020, August. SoK: contemporary issues and challenges to enable cyber
situational awareness for network security. In Proceedings of the 15th International
Conference on Availability, Reliability and Security (pp. 1-10).
Johnsen, Å., 2019. Public sector audit in contemporary society: A short review and
introduction. Financial Accountability & Management, 35(2), pp.121-127.
Newby, R. M. and Davies, P. S., 2016. Why do women stop breast-feeding? Results from a
contemporary prospective study in a cohort of Australian women. European Journal of
Clinical Nutrition, 70(12), pp.1428-1432.
Olivares, S. L. O. and Trevino-Martinez, S., 2015. Diverse contemporary issues facing business
management education.
Proietti and et.al., 2019. Stroke prevention, evaluation of bleeding risk, and anticoagulant
treatment management in atrial fibrillation contemporary international
guidelines. Canadian Journal of Cardiology, 35(5), pp.619-633.
Sušanj Šulentić and et.al., 2017. The key determinants of perceived external prestige (PEP)–
Qualitative research approach. Management: journal of contemporary management
issues, 22(1), pp.49-84.
Books and Journals
Bilgic, E., 2020. Human resources information systems: a recent literature survey. Contemporary
global issues in human resource management.
Husák and et.al., 2020, August. SoK: contemporary issues and challenges to enable cyber
situational awareness for network security. In Proceedings of the 15th International
Conference on Availability, Reliability and Security (pp. 1-10).
Johnsen, Å., 2019. Public sector audit in contemporary society: A short review and
introduction. Financial Accountability & Management, 35(2), pp.121-127.
Newby, R. M. and Davies, P. S., 2016. Why do women stop breast-feeding? Results from a
contemporary prospective study in a cohort of Australian women. European Journal of
Clinical Nutrition, 70(12), pp.1428-1432.
Olivares, S. L. O. and Trevino-Martinez, S., 2015. Diverse contemporary issues facing business
management education.
Proietti and et.al., 2019. Stroke prevention, evaluation of bleeding risk, and anticoagulant
treatment management in atrial fibrillation contemporary international
guidelines. Canadian Journal of Cardiology, 35(5), pp.619-633.
Sušanj Šulentić and et.al., 2017. The key determinants of perceived external prestige (PEP)–
Qualitative research approach. Management: journal of contemporary management
issues, 22(1), pp.49-84.
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