ENTREPRENEURSHIP

Topics: Entrepreneurship, Advertising, Cameroon Pages: 13 (4145 words) Published: September 22, 2013


TABLE OF CONTENT

EFFECTUATION AND CAUSATION----------------------------------------------------------3 BUSINESS PLAN FOR IN-NOLOGIC----------------------------------------------------------6 DRAGONS’ DEN PRESENTATION-----------------------------------------------------------14 REFERENCES--------------------------------------------------------------------------------------16

TASK ONE
EFECTUATION AND CAUSATION
Introduction
This essay’s focal points are two relative analysis underpinning two entrepreneurship central concepts; Causation and Effectuation. An awareness of the behaviours and actions of entrepreneurs is crucial in making entrepreneurial decision. Dew et al (2009) highly developed an appreciation of entrepreneurial processes by relating two discrete looms to creating new ventures: which are causation and effectuation. “Causation and effectuation are two alternative approaches that entrepreneurs use in the new venture development process” (Dew et al.; 2009). Effectuation and Causation Approach

In Sarasvathy’s article (2001) she discusses causation and effectuation as different moves towards the creation process. Causation processes are consistent with designed strategy models (Mintzberg, 1978). The foundation of these models is based on the rational reasoning found in neo-classical micro-economics. Causation is basically about the continuous or constant planning and applying strategic approaches in its recognising opportunities and developing new business plans (Ansoff; 1988, Mintzberg; 1978 and Brews & Hunt; 1999). According to Sarasvathy (2001, Pg.245) “Causal processes is particularly effective as it is given and focuses on selecting between means”. To be able to do this, entrepreneurs need to follow a clearly defined goals and paid “leadership opportunities within companies of industries developed to meet these objectives, evaluates and selects options to maximize expected returns” (Drucker, 1998). These activities include planning, analysis and running operator applicant of its pre-existing knowledge and resources. Though companies are always considered from inception, we cannot and can never predict the future but can only try to control it. In contrast, Sarasvathy (2001) proposes an effectuation model of entrepreneurship. She states that, under conditions of uncertainty, situations are unique to the extent that it is impossible to form a group from which to draw statistical inferences. The effectuation processes is consistent (Read S; 2008) and aligned with emergent (Mintzberg; 1978) and it is a non-predictive strategies (Wiltbank et al.; 2009). Uncertainty makes it almost practically not possible to portray inferences statistically in unique circumstances. With no feasible way of calculating expected return for any particular course at the moment, the case of entrepreneurs’ choice of action pushes entrepreneurs into selecting option based on loss affordability instead of analysing the alternatives and selecting that with the largest expected return. Entrepreneurs sustain flexibility by experimenting with the aim of exerting future control. Entrepreneurs accomplish by getting pre-commitments and associating with potential competitors, customers and suppliers. Sarasvathy (2001, Pg.245) states “Causal processes is particularly effective as it is given and focuses on selecting between means”. To be able to do this, entrepreneurs need to follow a clearly defined goals and paid “leadership opportunities within companies of industries developed to meet these objectives, evaluates and selects options to maximize expected returns” (Drucker; 1998). These activities include planning, analysis and running operator applicant of its pre-existing knowledge and resources. Though companies are always considered from inception, we cannot and can never predict the future but can only try to control it”. However, Sarasvathy (2001; Pg. 245) argues that the...
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