The ICEHOTEL does a very good job of effectuation, the idea building ventures by using techniques of non-predictive control, seeing the future as fundamentally unknowable as it’s filled with surprise after surprise. On one hand, the simplicity of the idea as not a lot of technology was involved in this venture and on the other and the improbability of anyone building a new venture which is an igloo in the Arctic Circle. The overall idea, but also to grow it which eventually grows into partnership with Richard Branson shows how improbable it really is. Entrepreneurs start ventures based on the skills and people they know. This approach offers two distinct advantages to the creator. Knowledge, skills and relationships being the first as these …show more content…
In order to retain and increase this market share Travelodge is investing heavily in developing internet presence to make it easier for customers to find out more about the Travelodge offer and book rooms. The reasoning is analytical or causal if selecting the right resources to achieve its objectives. This way of thinking starts with a goal and a given set of resources, and in that situation trying to identify the best alternative to reach its target. The ICEHOTEL uses more effectual logic whereas Travelodge is more causal. The ICEHOTEL was an opportunity venture for Yngve Bergqvist in the situation of uncertainty, as Travelodge relied on goals to achieve and look for the resources to achieve those goals. The starting point for the ICEHOTEL venture was not a specific objective for Yngve Bergqvist, it was a set of resources that allowed the objectives defined contingently over time based on the aspirations Yngve Bergqvist and the network of relationships around him. Under this reasoning, Yngve Bergqvist, according to his characteristics, knowledge and the set of people related is able to take the initiative to take a …show more content…
Lore Forte determined the destination for the company first and then moved back one step at a time to figure out all the things that have to happen to reach the goal. However, causal thinking does have its disadvantages. It not always good at spotting potential surprises. Travelodge may assume that all possible contingencies have been covered in the planning process and that no unforeseen events are possible due to the extensive planning process. This can potentially leave Travelodge in shock when the impossible happens. Causal thinkers are also not good at exploring all the possibilities for a company. They tend to focus on one or two of the more plausible outcomes and work toward