Effectuation and Causation: A Contemporary Entrepreneurship Review

This essay critically evaluates the relevance of theoretical models of entrepreneurship, specifically effectuation and causation, in the contemporary business landscape, characterized by uncertainty and global challenges like climate change. It defines entrepreneurship and explores the roles of effectuation (focusing on available means) and causation (planning towards specific goals) as described by Sarasvathy. The essay examines how companies utilize these concepts to identify strengths and weaknesses, fulfill customer needs, and gain competitive advantages. It discusses the importance of entrepreneurs' mindsets, problem-solving skills, and resource management in a dynamic market. The analysis includes examples like "Curry in Hurry" and strategies employed by Starbucks and Barnes & Noble, highlighting the significance of adapting to changing market conditions, utilizing technology, and building strong stakeholder relationships. The conclusion emphasizes the importance of these concepts for future entrepreneurial success, and the ability to adapt to changing market conditions, utilize technology, and build strong stakeholder relationships.

Effectuation and
Causation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Critically assessing the theoretical model entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations like
climate change and others ..........................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The contemporary management is one type of approach which assist the individual to
evaluate various business functions in one time which are carried by employees in workplace.
The various types of activities which are carried by organization are utilization of new tools and
tactics, planning the operations and so on. There are various investors which produce direct
impact on the organization. Because they monitored all over activities of the firm and also assist
the higher authority to use the resources in optimized manner (Baaken, Alfert and Kliewe, 2019).
The report will cover critically evaluate the view that theoretical model of entrepreneurship has
little relevance in the contemporary business context characterised by uncertainty and major
global dislocations like climate change. Due to the effective utilization of effectuation and
causation concept various companies are able to identify the strength and weakness in their
business effectively. Due to this the needs and desires of customers are easily fulfilled in time.
TASK
Critically assessing the theoretical model entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
like climate change and others
The entrepreneurship is defined as the procedure developing new type of business from
the scratch. There is a procedure which is required to save in mind that if entrepreneur creates
new tactics and ideas to gain better output of the company in market. That means they require to
use the resources in efficient way which leads to increase the overall revenue and performance of
firm at higher rate. Mainly there are four kinds of theories which is followed by many
organizations and those are cultural theory, sociological theory, psychological theory and
economic theory. The utilization of these theories is not similar from one another and also have
various kinds of advantages which is take by the entrepreneur. In context to Sarasvathy,
effectuation and causation both are plays the major role in the success and failure of company. In
respect of effectuation, it is the procedure which is being lining with possible impacts, they can
be utilized in efficient way. But in respect to causation, it is the procedure which assist the
company to select different means to form a plan. There are different kinds of functions which
assist the plan to gain high success rate in market.

The procedure of causation is based on the logic whereas the term effectuation is
concentrating on the development of new tactics or ideas. In today’s time within changing
market situation mostly organization are used the method of causation. It assists the firm to
gaining competitive advantage in market and between competitors. Due to this they easily
dominated the new market situation with help of facilitating high quality goods and services to
customers in long term. The entrepreneurs require to fix their goals which they wanted to gain
over a period of time. They also required to establish the strong procedure through which
through which the aims can be gained prior to time. The technique of effectuation is utilized for
capitalizing different goals. There is a combination of causation activities which is required to
be establish by entrepreneurs. The decisions which are taken in this procedure is in logical way
and there is special impact on taking specific decisions. The formation of effective tactics will
assist the entrepreneur for gaining growth and success at higher rate. Actually, there are various
common threats which is being impacted in the activities of business.
The approach of causation could assist the entrepreneur for establishing a strong network
through which they carried out the functions in efficient manner. After the effective
accomplishment of goals companies easily sustained their goodwill in market (Bissonnette and
Arcand, 2018). The entrepreneur have the plans to utilize resources and executes a sustainable
change in community by facilitating best quality services and products in the e market. It
involves handling the operations, utilization of resources and allocation of right technologies
effectively. The business ventures are fragile and the entrepreneurs requires to think while
executing various strategies for enhancing their growth and success. The other important thing is
that mindset of entrepreneurs plays the main role for achieving the best output in their business.
There are different kinds of skills which involves which involves problem solving, leadership
and decision-making. It assists the candidates in aspect of improving the productivity and
performance of business. In today’s are there is a scarcity of different types of resources which is
being faced by various companies, those who are doing their business on multiple industries. The
business required to be in the position of profit. Here crucial factor is involved which makes it
more sustainable in market. The name of the start-up is curry in hurry which is founded to
facilitate quality services to users as per their desires and wants. This is totally depended on the
procedure of causation. This is basically one kind of economic theory which is utilized for
arguing various kinds of variables. The company is also achieved better output due to the

inevitability. They also diversifying their goods in market at high range. Here organization have
main focus to utilize the practices universally which assist them for dominating the market in
effective manner. There are various kinds of new innovation tools and continuous improvement
which are executed by firm for improving the critical areas in efficient manner. There is viability
in providing high quality and services to users and increased the overall sales in market
effectively.
The modern entrepreneurs include new type of strategies and ideas and utilization of
different opportunities assist them in aspect of capitalizing on the desired outcome in the future.
It is a procedure to enhance the overall portfolio for the future. The advanced technology will
assist the entrepreneurs for achieving maximum portfolio within low time. The entrepreneurs
required to think practically because there are different types of uncertain situations in market
(Gil-Barragan, Aguilera-Castillo and Salas Amaya, 2021). The main concentration of knowledge
is to assist them for achieving desired output. In today’s time competition are very tough in
market. The entrepreneurs have accurate requirements and ability to concentrate on strategizing
output which they wanted to gain in market. But in other side it is necessary for entrepreneurs
that they can take instructions from their stakeholders like employees for run the activities of
their firm in smooth manner. Due to keeping proper coordination with the stakeholder’s firm is
able to generate best output revenue within low time. Due to heavy demand of high quality and
new goods firm faced various difficulties in their business.
The best strategic example for new type of modern world is Starbucks and Noble and
Barnes. They developed multiple tactics to attract the users in large number. Due to changing
dynamic scenario they decided to made alliance to dominates the market and increased their
overall productivity and portfolio in maximum level. They take the procedure of decision-
making more seriously by analysing of performance of prior organizations. They created very
few modifications which assist them to improving the practicability of specific company. There
is diverted situations which had been created for getting better output in market. Both the
partners of above-mentioned companies are utilized innovative way inspect of conducting
promotions to develop a valuable and new base of clients. This also assist them for retaining the
consumers in effective manner. The company always served the high-quality goods which is
beneficial for them to keep a positive brand integrity in market.

There are different types of models which is utilized by company in order to facilitate
better goods. The best utilization of various models such as porter's five forces and STP support
them to understand the dynamic forces which is evolved in market. The entrepreneur also adapts
the concept of flexibility which assist the functions of firm in better way. There are several
organizations which is utilized the right tactics and it support them for optimizing the overall
productivity in significant way. For example, the management of Airdi Limited is highly
attractive. Because they always facilitate beneficial products to users which includes hand dryers
and others. This firm is utilized various and effective social media platforms which is essential
for engaging the clients in long term. With help of various social media firm is able to highlight
the features of their product and services effectively in customer mind. Due to this targeted
audience are easily attracted in large number which leads to enhance their revenue at higher rate.
The other benefit of using social media is that here management is able to spread the awareness
of their product in multiple locations within low time (Guo, 2018). through this the organisation
has manager to establish the highest demand of their products.
In aspect of new business, they have dynamic environment and there are more than one
functions which is been evolved in market. In today’s time various concerns are there which can
be raised and the entrepreneurs required to solve that which leads to enhance the company profit
effectively. By providing high quality services and goods to users their overall living standards
are effectively changed within low time. There are various ventures which requires to use in
proper manner in this new world of raising entrepreneurs. The major advantage of effectuation is
that employees easily understand that in which way work are carried by various departments.
With help of proper understanding of work workers easily accomplish their task with full passion
and interest. Because without passion and interest employees are not able utilize their ideas and
creativity effectively which is responsible for decreasing the performance and productivity of
firm at higher rate.

CONCLUSION
After the whole analysis of report, it concludes that there are different kinds situations and
concepts which assist the entrepreneurs to gain success in future aspects. This report also
explains the entrepreneur requirements for improving their ideology and strategy for providing
best services and goods to clients for long term. In this report the various management models
are also described which assist the organization for solving different kinds of problems regarding
their product and services. With help of best quality product and services entrepreneur have the
opportunity for developing strong infrastructure in market and also for developing effective
relationship with the clients for long duration. The report will covers critically evaluate the view
that theoretical model of entrepreneurship has little relevance in the contemporary business
context characterised by uncertainty and major global dislocations like climate change.

REFERENCES
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