Examining Contemporary Management Issues in the 21st Century Business

This essay explores contemporary management issues in the 21st century, focusing on entrepreneurship and the concepts of causation and effectuation as defined by Sarasvathy. It contrasts traditional and modern approaches to business, highlighting the shift from rigid, risk-averse strategies to more adaptable, innovative, and customer-led practices. The analysis includes examples like Spotify, Uber, and Nike to illustrate strategic alliances and marketing innovations. The essay concludes that while businesses emphasizing effectuation may face initial failures, their ability to adapt and overcome challenges is crucial. Modern businesses prioritize collaboration, employee participation, and short-term experimentation to achieve their goals, marking a significant evolution in entrepreneurial strategies.

Contemporary
Management Issues in
21st Century

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION ..............................................................................................................................6
REFERNCES:.................................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
Entrepreneurship is meant by the readiness and ability to create, manage and run a
business venture, including uncertainties with a motive to make them as an opportunity that
generates profit. It is the creation of value (Alaktif and Callens, 2020). An entrepreneur is a
person who develops a new business venture, bearing most of the risks and uncertainties while
enjoying revenue from the business. In today times, entrepreneurship is a term that has been used
everywhere which encourage business enthusiasts to come up with essential services and
offerings which could fulfil the present demands and needs of the industry (Phillips and
Moutinho, 2018). The following assessment is based on the analysation of the main points of
entrepreneurship research led by the Sarasvathy in one of the most enlightening article called as
“Causation and Effectuation”. It will also signifies the development of new business ventures
with a comparison to a traditional model of entrepreneurship with relevant examples.
MAIN BODY
Entrepreneurship is a concept which influences the idea of creation, innovation and
differentiation within the business practices by facilitating goods and services within the domain
of market. It can be understood that business insiders have a diverse set of debates, arguments
and conflicting opinions in context with their personal perspectives and opinion of
entrepreneurship. As per the viewpoint of Sarasvathy (2001), the two key components are the
causation and effectuation which facilitates as the basis for formation of business venture, unit
and institution. Causation can be understood as a phenomena wherein the preset impact is served
to a person and they are required to opt for the most suitable driver that they would to like to take
into an action for providing operations (Amadi-Echendu, 2021). Effectuation can be known as
the procedure where preset means are served to a person and they are needed to choose and
select the most likely effect which is in favour with a motive to run a certain operation or
function in the area of work.
Causation is more preferable than effectuation if the businesspersons would like to
punctuate upon knowledge. On the other side, effectuation is more likely to generate profits if
business owners would like to opt for capitalize upon possibilities. Causation supports business
owners to weigh the predictabilities which is based within the uncertain future of business. It is
dependent on the concept that the competencies of business to control an event with uncertainties

is based upon the ability of the same to guess the certain event. Effectuation is supportive in
order to find out the aspects which are in controllable position related with unpredictable and
uncertain future event. It is dependent on the assertive approach which shows an idea that the
degree to which a company is able to control its surroundings and atmosphere in regards to cope
up with the uncertain future event.
Every mentioned enterprise has its own policies, base, procedures and value that it would
like to adopt to survive and sustain in the industry. There are several enterprises which is
dependent on the effectuation and other go for causation (Kuntikana and Singh, 2017). It is
highly based on the skills and mindset of the business owners in account with how they would
like to function in the market. Traditionally, the concept of entrepreneurship was most untapped
concept and person did not like to attempt to grab as likely it is done in the present times. All
because they were not eager to opt essential risks with their ventures. The enterprises chooses the
method of causation more often to start their ventures. But with the changes in the surroundings,
entrepreneurs have become more confident, resilient and passionate about their entrepreneur and
enterprises which serves them with the must required risks and attain well position in the
industry.
Entrepreneurship has fully revolutionised and changed in a positive way where there is
vast scope for every form of business in the business environment. Entrepreneurship in a modern
way are extremely concept driven and path breaking. Business owners no longer follows the
approach of mundane and are excited to utilize the various opportunities which might promote
existing success and enlarge the venture at the global level. Traditional way of entrepreneurship
is inflexible and very rigid (Mondada, 2019). They did not follow the approaches of contingency
in a proficient way. Entrepreneurship in modern way are more contingent as they are aware of
the fact with a motive tackle risks, the company must possesses the required set of manpower
strategic plans, resources and finances.
In the entrepreneurial business ventures, it has been observed that if the business
initialized with the effectuation process then they are likely unsuccessful at low stage of
investment. This means that these businesses will risks less efforts and revenue in comparison to
an enterprise with causation. The main reason behind the same can be got as the evaluation that
effectuation is a way which serves several possibilities to a new venture with an economic
market with a purpose to get the success.

It is also observed that most of the enterprises selects effectuation upon causation when
starting up a new venture. Successful business organisations in the beginning of venture must
concentrate on the creating impressive bonds with a purpose to gain suitable assistance and
support in order to provide leverage in the industry and assist them develop better rapport with
their rivalries. For example, Spotify and Uber are one of best examples that demonstrates
strategic alliances with an object to improve the profitability and popularity and market share.
The chosen alliance has supported both the business ventures to attain fundamental benchmarks.
In today's time, in order to consider decision-making, of the business ventures are highly
concentrated on the innovative means of promotion and marketing of their offerings. Moreover,
new enterprises do not hold the classical approach of entrepreneurship as they are not suitable in
the modern surroundings because of high competition and flexibility. The business environment
in every domain has become most competitive and aggressive which rise up the needs for the
level up firms in terms of their retaliatory tactics to the competitions. With a purpose to do the
same, enterprises requires to try harder upon the generating, formulating, executing,
implementing and controlling the strategies linked to market which could serve with benefits of
competitiveness (Lee, Gloviczki and Blei, 2019). Modern firms become smart and try to grab
more possibilities which are more adaptable, flexible and relatable to the market. Nike is one of
the greater example in order to adopt attractive and innovative approach. These ventures also
concentrates on the acquiring celebrity feature in the social media projects or in other marketing
campaigns in the market.
With an addition finance decisions, the business owners are more dependent on the short-
term benefits. The classical and old way doing business for the profits is not the main focus of
new companies (Thompson and Henke, 2018). They are more likely to focus on the
experimenting things with their business practices in order to attain short but effective outcomes.
With an aim to attain prominent goals, it is fundamental to execute collaborative and
participative culture in the organisational settings. Participative surroundings develops a sense of
communication, respect and initiative within the workings employees of the company which in
turn enables them to demonstrate their viewpoints, opinions and perspectives confidently. This is
also likely to affect on the engagement, motivation and willingness of the concerned employees
to put their ideas and efforts in context to attain goals of the company. Google is a well
recognised company which lays big concern over the participative surroundings in the field of

work. It facilitates a platform for the employees to voice their perspectives. Also, the
forthcoming entrepreneurs are looking forward to create and innovate their own methods of
tackling and running the company which is commendable.
CONCLUSION
It is concluded from the above assessment is that entrepreneurship is one of the
intrinsic part of the business. Entrepreneurs are very important and essential for the development
of the global companies as they put their services and efforts in the upliftment of the same.
Enterprises which emphasises on effectuation tend to get more failures. Nevertheless, they have
an integral ability to react, eliminate and overcome such failures. Business owners are generating
now realities nowadays with their vision by moulding their perspectives intro goods which have
to potential to serve the needs of buyers in a considerable way. The present status of the
entrepreneurship is different from earlier ones. Overall, it is found that new companies will be
more active, responsive, technically advance and customer led in comparison with others.

REFERNCES:
Books and Journals:
Alaktif, J. and Callens, S., 2020. Migration and Climate Change: From the Emergence of Human
Cultures to Contemporary Management in Organizations. John Wiley & Sons.
Amadi-Echendu, A., 2021. Contemporary Issues in Sustainable Operations Management.
In Responsible Management in Emerging Markets (pp. 187-214). Palgrave Macmillan,
Cham.
Kuntikana, G. and Singh, D. N., 2017. Contemporary issues related to utilization of industrial
byproducts. Advances in Civil Engineering Materials, 6(1), pp.444-479.
Lee, B. B., Gloviczki, P. and Blei, F. eds., 2019. Vascular Malformations: Advances and
Controversies in Contemporary Management. CRC Press.
Mondada, L., 2019. Contemporary issues in conversation analysis: Embodiment and materiality,
multimodality and multisensoriality in social interaction. Journal of Pragmatics, 145,
pp.47-62.
Phillips, P. and Moutinho, L., 2018. Contemporary issues in strategic management. Routledge.
Thompson, J. R. and Henke, P. K., 2018. Contemporary management of critical limb
ischemia. Advances in surgery, 52(1), pp.257-274.