Effectuation and Causation in 21st Century International Management

This essay examines the impact of effectuation and causation on modifying business environment problems in international contemporary management. It defines causation as a method where entrepreneurs focus on achieving specific goals, while effectuation involves addressing unpredictable issues through controlled efforts. The essay discusses how globalization and technological advancements necessitate the adoption of new strategies, highlighting challenges such as increasing competition, declining transition prices, and trade barriers. It emphasizes the importance of communication, technological adaptation, and strategic planning in navigating the complexities of the global market. The essay concludes that understanding and applying both causation and effectuation are essential for businesses to thrive in the international arena, enabling them to overcome challenges, expand market share, and foster growth by leveraging global resources and adapting to diverse cultural and economic landscapes. Desklib provides resources to further explore these concepts.

Individual Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Many companies aim at giving network resources along with implementing new thoughts
but exchange of certain knowledge between developed businesses. Causation and effectuation
are associated with methods or approaches of sharing thoughts between network resources and
companies. Causation method could be described as procedure where entrepreneurs mainly focus
in accomplishing certain goals add determining methods to achieve their business objectives
(Ladner, 2018). On the other hand, effectuation is described as procedure where entrepreneurs
pay their attention towards resolving issues that are unpredictable but could be control by
implementing efforts. With the rise of globalization several companies are adopting
Internationalising approaches at quicker rate in order to increase their performance and market
share. The following essay covers impact of effectuation and causation in modifying business
environment problems in international contemporary management.
MAIN BODY
According to author and novelist it is described that organizations are not able to predict
consequences which they could face in future but they could pay their attention in developing
businesses that would help in expanding market share and surviving any further challenges. As
dynamic environment is changing, many companies are implementing modifications that are
important for surviving in the market effectively. Technological advancement has brought new
development that motivate organizations to make large investment, develop effective teams,
buying luxurious equipment that could help them in operate business smoothly through saving
their time. Causation and effectuation both plays a very important role in companies because
they provide transparent image related to decision making procedure in new business ventures
along with assisting in developing plans for accomplishing organization aims effectively (Park,
2018). One international level competition is increasing which impact companies’ activities
because they experience more issues which include transition prices decline in local market, new
competitors and trade barriers fall. Because of these reasons companies are required to
implement new technology in order to attract large base of customers along with saving time and
improving productivity of workers.
Globalization could be described as procedure by which companies create international
causation or begin running their business functions on global level. It describes open flow of
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technological information common knowledge and commodities across several nations and
customers. It also assists organization in expanding their customer base along with enhancing
market share and develop more profitability for themselves. In present times many organisations
are expanding their business on international level in order to reach new customers, enhancing
profitability and large customer base in order to trade commodities and services. There are
several challenges that are experienced by companies on international market due to presence of
more rivals on global level. Causation and effectuation are defined as methods that assist
entrepreneurs and companies to understand changing dynamics of business environment on
global level (Hoffman, 2018). Effectuation method give entrepreneurs approaches to resolve
issues through accurate uses of resources, establish desired aims to be accomplished and better
decision making which could assist in creating marketing strategies to achieve desired objectives.
Dynamic management business is modifying and it is considered as flexible such as
modifications in taste as well as preferences of customers, increment in competition,
improvement in technology and changes in government policies. In 21st century it becomes
important for many organisations to operate their business functions on international market in
order to achieve competitive advantage. Causation method is associated with changing business
management on international environment that assist entrepreneurs to understand market in order
to expand business and accomplish business objectives. Every nation poses their own
government, policies, culture, currency and time zones which provide challenges to companies in
order to manage multiple components related to improvement and growth. In order to overcome
these challenges of global market, companies have to provide training to their employees and
choose people with predefined business plan. In order to enhance growth of a company it is
essential to consider components that could impact activities and functioning of business on
international (Miller, 2018). Communication is considered as major component in a company
especially in organising business functions across diversified cultures, laws, languages and
policies. Causation method implements that effective communication with consumers and
workers is very important in order to accomplish success on global level. Modifications in
technology are also considered as essential challenge that impacts growth of companies because
advancement in technology assist in implementing new changes that could provide companies’
competitive advantage. If companies fail to implement or adopt innovative techniques then their
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rival would acquire more market share and could impact consumers in terms of buying
commodities.
There are various management problems that could influence contemporary global business
environment for companies while operating their business. With the modification in 21st century
enhancement in technology and international market is completely dependent on Internet it is not
essential that all companies are prepared for dealing with people having diversified culture and
languages. In order to compete on global market, organization are required to make major
investments in human resource through providing training to employees in order to enhance their
productivity and work efficiency. Due to less information and knowledge about global policies
and laws it become complicated for organization to create completely owned subsidiary abroad.
Therefore, Business Network is important in order to enable large international coverage and to
gain several markets. Organising workflows for creating an effective team it's considered as a
challenge that organization experience in global market because some employees face problem
in working condition and others might need proper guidance in order to work effectively on a
project (Jacobs, 2020). The organization must make sure that team is working effectively with
full capacity which will help them in completing their task within deadlines.
Changing in rate of currency impact financial the seasons of companies and also impact
inflation rate while establishing a price for a commodity in global market. Therefore, before
implementing or taking any decision in terms of finance, companies must consider modifications
in rate of currency in order to mitigate or avoid any future business challenges. Establishing
correct price of a commodity in order to sell those in international market is a very big challenge
for companies. In order to implement right product price organization are required to considered
their logistic costs, price of similar commodities which are offered by rivals in domestic market.
Supply change management is also considered as major challenge in international market as it
consists of variation in regions and regulations, hence for accomplishing success in global
market it is important for companies to have cost efficient and short supply chain. Environmental
components also impact business operation in global market because any avoidance in taking
care of these challenges will impact brand image of an organization and will minimise trading of
commodities (Turvey and Kurissery, 2019). Selecting right payment approaches for customers is
also considered as a big challenge in international market for companies because of
inconsistency in payment would lead to negative influence on clients that could make
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complicated for business to satisfy their potential consumers. Organisations must consider
payment methods that are secure, credible and safe for consumers along with providing them
satisfaction.
These management challenges influence business operations in international market which
are required to be understood by entrepreneurs in order to acquire large market share on global
level. Companies could overcome these challenges effectively with identifying and focusing on
culture as well as tradition of different nations in which they are operating their business.
Causation and effectuation assist companies in establishing objective and strategic plan that
helps them in overcoming challenges in international business environment. These methods
assist businesses in gaining knowledge about strategies that could work along with helping them
in determining sources of problem. It is essential for companies to pay their attention on
mitigating challenges associated with operating business functions on international market.
Global market provides companies more possibilities for trading their commodities and services
that could assist them in expanding market share and provide them growth (DiFonzo, 2018). It
also offers them more options to explorer along with developing and creating new ideas to
expand or build positive image among customers. International companies utilise finance and
technology from wealthy nations as well as raw material from poor countries which helps them
in using resources available from world.
In present time of 21st century in order to capture market share on international level it is
very important to have complete knowledge about the market along with how to sell
commodities and services on global level. there are several challenges which a business
environment face while operating their business in international market which needs to be
overcome by them through implementing several strategies.
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CONCLUSION
From the above essay it has been concluded that causation and effectuation are considered as
to most essential methods that could help businesses in order to understand strategies that would
help them in enhancing growth in global market. In order to expand business in international
level it is very essential for companies to overcome several challenges that they could face in
global market. It has been analysing from the above discussion that in order to survive in
international market, companies are required to experience with diversified international laws
and policies in order to enhance their productivity and performance. It is very essential for
companies to train their workforce so that they could increase their skills and knowledge.
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REFERENCES
Books and Journals
DiFonzo, J.H., 2018. Changing Matrimonial Practice in 21st Century New York: A Report of the
2017 Matrimonial Bar Summit. Fam. Ct. Rev., 56, p.626.
Hoffman, A.J., 2018. Management as a Calling: A Blueprint for Management Education in the
21st Century. Ross School of Business Paper, (1387).
Jacobs, H.M., 2020. Sustainable Property: What Form Should Ownership Take in the 21st
Century?. International Journal of Environmental Sciences & Natural Resources, 25(2),
pp.75-77.
Ladner, J., 2018. Public health issues in the 21st century: National challenges and shared
challenges for the Maghreb countries. La Tunisie Medicale, 96(10-11), pp.847-857.
Miller, R., 2018. Transforming the future: Anticipation in the 21st century (p. 300). Taylor &
Francis.
Park, S., 2018. Challenges and opportunities: the 21st century public manager in a VUCA world.
Turvey, R.A. and Kurissery, S., 2019. Advancing Sustainability Research in the 21st Century. In
Intellectual, Scientific, and Educational Influences on Sustainability Research (pp. 1-
13). IGI Global.
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