Week 5

 

EZZALDEEN ALI ABDO SAEED ALSARMAH TP076013

As a matter allows effectuation to not only be applied in companies, but in entrepreneurship, as well. It is a mode of thinking and problem-solving that embarks on finding openings and solving problems based on the resources that are present, not predictions and planning for the next day.

Contrasting to other approaches, effectuation perspective is based on an idea that the future is unpredictable, but it is obtainable through planned and deliberate human actions (What Is Effectuation? Effectuation 101, n.d.).

The two approaches have synergistic effects. Neither is better than the other. These languages resolve a variety of issues and are suitable for different situations.

Effectuation is not equated to procrastination or no plan at all. The concept of agility instead of relying on predictions means not using them as a scapegoat or planning extensively but rather deciding and taking actions.

And despite the differences between the two theories, effectuation and lean startup can be used together. Both share two key assumptions: Uncertainty creeps up on you even when you are engaged in the most diligent planning process. Traditional models promote exactly the opposite: what is added to this is that design (detailed) plans as well as alternative scenarios are (more) highlighted by uncertainty.

 

References:

Scribbr. (2023, December 29). Scribbr - Your path to academic success. https://www.scribbr.com/

The five principles of Effectuation. (n.d.). https://effectuation.org/the-five-principles-of-effectuation

 

Temirlan Ospan TP077066

Even though effectuation is commonly misunderstood as just "not planning," it is a unique method of making decisions that is especially useful in erratic situations like entrepreneurship. Effectuation, which was first introduced by Sarasvathy (2008) at the University of Virginia, prioritises action over prediction. Entrepreneurs use their current resources—expertise, networks, and devoted partners—to co-create possibilities along the road rather than painstakingly planning for unknown futures.

Planning is not completely eliminated by this. Effectuation promotes flexible strategies that may be modified in response to new knowledge and connections that are discovered by trial and error and engagement with the market. Effectuation is like using a trustworthy map and compass to navigate uncharted territory; you have a basic idea of where you're going, but unanticipated discoveries can change course (Effectuation Institute, n.d.).

This strategy encourages a proactive mentality, enabling business owners to welcome unpredictability and even turn unanticipated events into opportunities. Effectuation is a potent substitute for conventional, prediction-based approaches, giving entrepreneurs a useful toolkit for navigating the dynamic startup scene.

 

References:

1.         Sarasvathy S. D. (2008, February). Effectuation: Elements of Entrepreneurial Expertise. Research Gate. https://www.researchgate.net/publication/228786046_Effectuation_Elements_of_Entrepreneurial_Expertise

2.         The Effectuation Institute. (n.d.). What is Effectuation? Effectuation 101. https://effectuation.org/effectuation-101

 

KEVIN CYIRIMA TP076893

Effectuation and Lean Startup are two entrepreneurial approaches with some similarities but also distinct differences. Effectuation focuses on leveraging existing resources and expert intuition (Silva et al., 2016), while Lean Startup emphasizes iterative product development and validation through continuous experimentation (Aggestam et al., 2018). While they have different emphases, they share a common goal of adapting and learning in the face of uncertainty.

 

The compatibility of Effectuation and Lean Startup depends on how they are applied. Entrepreneurs can integrate elements of both approaches by starting with available resources and forming partnerships (Effectuation) and then using Lean Startup principles to test and validate their ideas through iterative experimentation. By combining these approaches, entrepreneurs can take calculated risks, learn from feedback, and accelerate their learning process.

 

Ultimately, the compatibility of Effectuation and Lean Startup lies in the entrepreneur's ability to leverage the strengths of each approach based on their specific context and goals.

 

References:

 

Silva, J., et al. (2016). Effectuation and Lean Startup: A study on their relationship and applicability in non-digital firms. ScienceDirect.

 

Aggestam, M., et al. (2018). An exploration of the applicability of Lean Startup in small non-digital firms. International Journal of Entrepreneurial Behavior & Research. https://www.emerald.com/insight/content/doi/10.1108/IJEBR-04-2021-0270/full/html

Mohammed ali Mohammed Ahmed aqel TP077943

The approach of effectuation can be used not only to support the process of entrepreneurship, but also the evolution of an established business. This is a process coming to an end when one decides to act or not to move towards anything, again based on this uncertainty with using any viable means possible to create new ends. Companies can call on the effectuation to nourish the innovation and change-orientation through the utilization of the available resources, which they already own (Ditte Hvas Mortensen, 2017).

 

In case of business settings, effectuation way of thinking involve starting with what you have, i.e. your existing capacities and assets and then while incorporating the emerging opportunities and the market feedback, developing strategies for product design or business idea. The difference is seen when compared to traditional predictive planning, this is because these pres and goals are always set up by forecasts(What Is Effectuation? Effectuation 101, 2016).

 

 

Thus, the application of effectual reasoning is the only way for companies to attain and maintain necessary agility, which enables them to steer their business and markets´ unpredictable flow, which is under permanent change. It workshops a vision of red-raw and full of contradictions which means uncovering new emerging ways for growth and development.(Alain Dargham, 2021).

 

Effectuation, in brief, is a good alternative for companies that strive for innovation and want to remain competitive in the contemporary business world, where the speed of business operations is rapidly increasing. Therefore, both entrepreneurial thinking and planning processes of various organizations of any size and business can be integrated to this framework (What Is Effectuation? - Smartpedia - T2informatik, 2019).

Ditte Hvas Mortensen. (2017, February 27). The Basic Principles of Effectuation – How to Use What You Already Have to Become More Innovative. The Interaction Design Foundation; Interaction Design Foundation. https://www.interaction-design.org/literature/article/the-basic-principles-of-effectuation-how-to-use-what-you-already-have-to-become-more-innovative

 

What is Effectuation? Effectuation 101. (2016). Effectuation.org. https://effectuation.org/effectuation-101

 

Alain Dargham. (2021). Effectuation principles: a theory for entrepreneurs | DAA Capital Partners. Daacap.com. https://www.daacap.com/effectuation-principles-a-theory-for-entrepreneurs/

 

 

What is Effectuation? - Smartpedia - t2informatik. (2019, May 13). T2informatik GmbH (EN). https://t2informatik.de/en/smartpedia/effectuation/

Rian Abdalwahab Ahmed Ayash Tp075789

What is the key difference between effectuation and other approaches in entrepreneurship?

The field of idea exploration provides us with a sense of abundance. The metaphor of the gardeners caring for a rich creativity soil brings to mind creates similar feeling. All approaches gain our confidence and become instruments in our craft, allowing us to start with small seeds of imagination and feed them with passion until we get more than what we bargained for - plants of prosperous invention. When you imagine mind mapping with gardening gloves on, it becomes your loyal companion guiding you to put the seeds of thoughts on the ground and helping you to nurture its superb growth. While the artificial intelligence is like the train on the rails, well- directed, and predictable way, lateral thinking is the wind that gently pushes us beyond the well-frequented paths, sometimes discovering that treasure among the bushes undiscovered by others.

Longwood Gardens. (2024, March 11). Idea Garden. Longwood Gardens. https://longwoodgardens.org/gardens/main-fountain-garden-district/idea-garden

 

(Longwood Gardens, 2024)

 

 

But we do have SCAMPER, which is our handy shears for pruning, to cut off non-useful elements and if necessary, re-form everything from an entirely new point of view. It doesn't stop with being problem-fake-solver sailor that is it about nurturing the garden of imagination which the rain on that snowflake gives us beauty and abundance that we sometimes don't know where they comes from. This experience of co-operation is not just gardening but participation in the building-up of possibilities, where each of us is able to contribute his or her marvelous, respective lead to the visual effect of the patterns.

CreativeQueenBee. (2018). Creativity is like gardening | Creative Queen Bees. Creativequeenbees.com. https://creativequeenbees.com/creativity-is-like-gardening/

(CreativeQueenBee, 2018)

Hamza Khaled Mohamed Almakhathi TP077218

Two approaches to the moral are posited here but what is equated is that it occurs either in the causal domain which is being affected or consequent domain which is being affected. Well- established entrepreneurs have the insights and intuition to be able to apply the options they know to solve the problems that are challenging.

 

Instead, what is referred to as the substantive strategy as primary goal is achieved in this way the utilization of the resources and made secondary the readiness to face uncertainty due to dynamism inherent to the new circumstances by constant change that brings with it the need to take into account unstable development environment, whereas causal strategy is the more elaborate and specific variant by defining particular objectives, the planning and the estimations of result.

 

Competent entrepreneurs would be the personel to rule the industry being defeaters of every obstacle on success path. For that reason, their skills and knowledge would be quite an essential tool in order to defend their ground of the market and to fight their way to the success. (Mollah,2021)

 

 

 References:

Mollah, M. (2021) What is Moral Entrepreneurs & What they do? - complete guide, Smart Business Daily. Available at: https://www.smartbusinessdaily.com/moral-entrepreneurs/