LSC UoS - Contemporary Management Issues in the 21st Century Essay

This essay explores contemporary management issues in the 21st century, focusing on the concepts of causation and effectuation within the global business environment. It identifies key challenges such as international company structure, foreign laws and regulations, international accounting, global pricing strategies, currency rate fluctuations, communication barriers, cultural differences, political risks, and worldwide environmental issues. The essay emphasizes the importance of addressing these issues for organizations to enhance profitability and sustainability in the dynamic global market. It concludes that by understanding and mitigating these challenges, businesses can improve their performance and achieve success in the international arena.

Contemporary Management
Issues in the 21st Century

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Concept of Causation and effectuation ad issues related to global business environement................3
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Contemporary management issues are the issues are the collection of the processes,
resources and innovations in the business. These issues are related with the problems and
opportunities which are basically related to the real life politics. The report will outline the
causation and effectuation that will discuss the given statement. Further this report will
outline the dynamic business management issues in the global business environment.
MAIN BODY
Concept of Causation and effectuation ad issues related to global business environement
In the management and economics theories, the scholars have traditionally thinks that
the existence of the artefacts which are firms, organizations and the global markets.
Causation refers to the approach which used to implies that the business managers and the
entrepreneurs focuses on the set goals and objectives and then its aim is to find the means in
order to reach the objectives (Vanderstraeten and et.al., 2020). This term is consistent with
the strategy which already planned which helps the entrepreneurs to reach the goals. The
analysis and the planning are the two major factors that the entrepreneur must focus which
helps in the better distribution of the produced outcomes in the market. Effectuation is the
approach and it is the new approach of the entrepreneurship which used to do insufficient
empirical testing and by having the critical analysis.
Entrepreneurial opportunities and its processes is the long process that the
entrepreneurs must understand in order to evaluate the given statement. The venture creation
refers to the creation of the new ideas or the new technology into the new business that will
attract the investors to invest (Yu and et.al., 2018). This is the new ideas for the entrepreneurs
will help the investors to invest and start the new business in the competitive market. As the
potential entrepreneurs used to identify the business idea by paying attention to the media
which are related to the venture creation.
Dynamic business process management refers to the management process which helps
the enterprises to react on the changes or the changing conditions in the market. The changing
business helps the organization to have the technical changes which are required to survive in
the competitive market. The changes must be identified and implemented in such a manner
that will maintain the profitability of the organization in the global market. As the business

environments is basically consisting of the external factors that used to affect or support the
business activities (Arvidsson, Coudounaris and Arvidsson, 2020). Global business
environment is the environment of the different sovereign countries in the world. This
environment influences the decision making power of the organization and may also affect
the profitability of the business. The aim of doing the global business with the dynamic it
helps the organization to have various opportunities and challenges in the international
market. As the international market is the big market it involves the risk which may affect the
profitability of the business. Expanding the business beyond the national boundaries affects
the growth of the company and the business used to face lots of issues. There are various
business management issues in the contemporary global business environment which are
described as below:
1. International company’s structure: If the aim of the company is to set up its
business globally than they must set up the team and structure to ready for the
challenges. The organization must organize into the various continental groups
which helps them to grow in the international markets (Bhagra and Sharma,
2018). In order to have the vast company structure in the firms used to face these
problems and decreases the profitability in the international market.
2. Foreign laws and regulations: By getting the place in the internal market the
company must focus on the changes laws and regulations of the country. As the
laws and regulations used to changes and the laws of countries varies the business
used to face this issues in the global market. It is very important for to follow the
employment and labour requirements as it also varies from country to country. As
it is very difficult for the organizations to cope up with the different laws and
regulations so they invest in the experienced corporate counsels in order to follow
laws and policies.
3. International accounting: This is the biggest issue that the company must consider
while operating in the global business. With the changes in the business
management the organization must have the good accounting which used to
manage its profitability (Belyaeva, 2018). This is the one of the most legal areas
when it comes under the international business that is tax compliances. Having the
different tax rates and taxation systems can make the difficulties for the
multinational organization. The company must focus on this issue in order to
maximize the profits and revenues in the global business environment.

4. Global pricing strategy: The changes in the technology increase the prices of the
products. It creates the difficulty for the organization to set the prices of the
products and services in the global market. The organization must set the
competitive prices and makes the company to earn the profits. In order to set the
bets prices the company must research the market and the competitor prices which
helps the company to set its products prices. Pricing basically depends on the
position of the brand in the market. The organization should not charge the higher
prices according to their brand as it will lower the profitability of the business.
5. Currency rates: While considering and setting the above factor or issue the
artefacts must also focus on the currency rates. The fluctuation in the currency
rates is one of the most challenging issues in the global business environment
(Ahmad, Masri and Lee, 2019). As major changes can affect the balances of the
expenses and profitability of the business. There is the way to cope up with this
fluctuations is that the suppliers and the production cost should be done in the
same country where the organization is selling its products. The another best way
to mitigate with the unpredictable currency rates is that the company must have
the set up the forward contract and have the future sales agreement.
6. Communication barriers and cultural differences: Good communication is the
most required thing that is necessary to have in the international market. As with
the dynamic environment the organization used to face the communication
difficulties in the global business environment. By having the effective
communication with the colleagues and other employees in the organization it
makes the company to know about where they are lacking. However, having the
different types of communication across the cultures is very challenging for the
companies. The organization must develop the cross- cultural competency and
having the good communication skills makes the company profitable in the global
market. Cultural differences can also affect the demand of products and services
in the global market. The organization should also focus on this issue while
having the business in the global market.
7. Political risks: This is most certain risk that is faced by every artefact in order to
have international business. As the political risks are uncertain and unstable it
affects the profitability of the business. The growing trend in the economic
nationalism may also affect the global political landscape (Yusoff and et.al.,
2020). Many companies used to face this issues which decreases the growth and

development of the business. The issues such as ill- defined policies and the
corrupt policies and practices may causes problems in the emerging markets.
Dynamic in the government can used to bring the changes in the policies and
regulations of the country.
8. World-wide environmental issues: As there is change in the environment the
organization also faces the environmental risks. The changes in the climate and
environmental risks are the major issues that face by the company in the global
business environment (Sharma and et.al., 2020). The organization must produce
and sell the eco- friendly products that make the company to have and maintain
the good environment.
Focusing on the above issues it is the duty of the organizations to focus on these
issues while having the business in the global market. By focusing on these issues it
makes the company to know about the areas which can decreases the profitability of
the business.
CONCLUSION
From the above report it is evaluated about the concepts of the causation and
effectuation that was given in the statement. Further this report has evaluated the dynamic
business issues in the global business environment which are international company structure,
different foreign laws and regulations, international accounting, calculation of cost and
pricing strategy, rates of the currency, cultural differences and communication barriers,
political risks, etc. By focusing on these factors it makes the firms to work on these issues
and helps to increase the profitability in the dynamic global business environment.

REFERENCES
Books and journals
Ahmad, A. M. B., Masri, R. B. and Lee, C. A., 2019. Future Challenges to the Entrepreneur
in Relation to the Changing Business Environment. Global Business & Management
Research. 11(2).
Arvidsson, H. G., Coudounaris, D. N. and Arvidsson, R., 2020. The shift from causation to
effectuation for international entrepreneurs: Attitudes and attitude change versus
social representations. International Journal of Entrepreneurship. 24(3). pp.1-23.
Belyaeva, Z., 2018. Business environment challenges and trends for contemporary SMEs in
Europe. In The sustainable marketing concept in European SMEs. Emerald Publishing
Limited.
Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2). pp.7-24.
Sharma, P. and et.al., 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research. 116. pp.188-192.
Vanderstraeten, J. and et.al., 2020. SME innovativeness in a dynamic environment: is there
any value in combining causation and effectuation?. Technology Analysis & Strategic
Management. 32(11). pp.1277-1293.
Yu, X. and et.al., 2018. Managing uncertainty in emerging economies: The interaction effects
between causation and effectuation on firm performance. Technological Forecasting
and Social Change. 135. pp.121-131.
Yusoff, Y. and et.al., 2020. Linking green human resource management practices to
environmental performance in hotel industry. Global Business Review. 21(3). pp.663-
680.