Aqaba Jordans Gift to the World - Essay Example

Aqaba: Jordan's Gift to the World A successful business venture requires the outlining of business objectives, strategies to achieve these objectivesand personnel to carry out the process. For this, the company also needs to find, develop, and retain the best global talent and identify processes and skills needed to build an inclusive workplace in which everyone can put their talents to work. I completely believe in TMA's belief in the power of business at its best - the power to innovate, improve, fulfill, transform, and empower. http://www.tmaworld.com/solutions/ps.cfmpsid=7 According to the Implementation Fundamentals discussed by Robin Speculand, there are certain guidelines for business strategies which are traditionally recognized: 1. Communicating the vision 2. Identifying obstacles 3. Creating a Sense of urgency 4. Training 5. Identifying change agents 6. Rewarding and recognizing 7. Setting and celebrating milestones 8. Monitoring success The six new fundamentals draw on research conducted by Bridges from 2000-2004 and identify the state of strategy implementation according to individuals who shared their experiences with the group. These were identified as: 1. For the right results, take the right Action 2. Double the effort 3. Its not Rocket Science, it is Discipline 4. Controlled Chaos 5. Theory Promises: Successes sells 6. Constant Review Creating business strategy is all about giving the business a direction, a sense of purpose, vision, mission and values to achieve maximum goals. Speculand, Robin. Bricks to Bridges http://www.bridgesconsultancy.com/pdf/chapter2.pdf Infrastructure investments are hugely important activities. An important question concerning infrastructure investment in any project is the all-important return on investment (RoI). About 4.5 percent of GDP was spent on public infrastructure in the U.S. throughout the 1990s. This ratio recently reached 13 percent in China. China's case is like an open book. The economy has been growing at leaps and bounds in the past few years. A small investment in infrastructure has translated into higher revenues, not only for the investors, but for the State too. Similarly, in the case of Jordan, an investment of $1.5Bn will definitely yield returns in the form of increased trade and tourism. http://www.hiebs.hku.hk/working_paper_updates/pdf/wp1144.pdf Successful global business operations require connecting global strategy to local execution. Their operations must also address the operational and execution issues which enterprises face when looking for new opportunities. This process would require meeting the following conditions: Anticipating the impact of operating globally in economic and operational terms Managing the key issues and risks of sourcing and manufacturing internationally Taking advantage of the rapid growth for products and services globally An action plan needs to be developed for growing, competing, and operating globally, with a competitive advantage. An integrated global business systems approach connects global strategy to local execution. Building and executing a global business strategy would include the following steps: Adapting to a global business environment: the rapid pace of globalization, a new executive 'mindset,' emerging capital markets, and the 'globalization of knowledge' Examining the economic and operational characteristics of a global enterprise Reviewing the pros and cons of various legal structures for global operations The necessity of developing your company's Fundamental Economic Model (FEM) before globalization Fundamentals of Sourcing Globally Understanding global supply economic considerations With the convergence of the world because of technological developments, travel and tourism have received a tremendous boost. This is the right time to utilize the resources that Jordan has to offer the world, and derive the maximum benefits thereof. Identifying key issues and risks of sourcing internationally International sourcing would mean transfer of knowledge and bringing in international best practices into the organization. Managing global supplier relationships Integrating global suppliers with your domestic operations Selling and Distributing globally requires the following: Identifying real market expectations in the global marketplace Understanding the economic considerations of global distribution and logistics Targeting global demand opportunities Managing currencies in demand and supply directions Developing customers in different countries Managing international sales, distribution, and logistics risks Integrating global selling, distribution, and logistics with your domestic enterprise Serving and Servicing Globally Understanding the economic considerations of global customer support Supporting global customers Defining value in the eyes of the global customer Designing support services for local markets Integrating global service with your domestic business http://irc.caltech.edu/courses/Global_Business_Strategy.htm The project being planned by Imad Fakhoury, at the Aqaba beach, Jordan is an example of a successful business model and embodies all the above-mentioned features. The industrial zone in the southern port area will be used to generate more revenues, thus negating the need for fresh land. The activities, which were being carried on in the prime coastal area, are being relocated to the SEZ or special economic zone which is duty free zone, declared so to attract new investors in trade and industry. Goods and services in the special economic zone are cheaper compared to other parts of the country. Thus, the business will attract more customers and also have access to increased infrastructure and facilities. This step would also free prime land, which is a part of the duty-free zone and slated to become a regional hub for business and leisure.( Fakhoury) Compared to the present maximum capacity of 30M tonnes/year and utilization of 20 M tonnes, the enlarged southern port's capacity will grow to 100M tonnes a year as the result of two major expansion phases in the next 30 years. Since the northern part of the coast has already developed into a tourist attraction, doing the same for the southern port would lead to an identity crisis and the uniqueness of this activity would be lost.( Fakhoury). Total investment for this plan is estimated at $1.5Bn and the project was originally scheduled to be concluded in 2020. However, Fakhoury is optimistic that the work can be expedited and completed in 5-7 years. A new terminal for cruise ships will built where the main port is currently located, as part of major mixed-use development comprising integrated tourism, commercial, residential projects as well as public use facilities. The cruise terminal will also be tendered in due course, with an estimated value of $2Bn. Following best international practices, Jordan's only sea port will be broken up into separate business units to be offered for bidders, mainly on a joint-venture basis using the public private partnership model. The business units would comprise of the container terminal, a ferry terminal, marine services, a grain terminal and general cargo and ro-ro berths, in addition to an industrial terminal dealing mainly with phosphate, potash and fertiliser exports, which are Jordan's main mining exports. The public private partnership model would ensure easy finance, speedy completion of projects, sustainable public interest and ensure healthy profits. The general cargo, ro-ro, industrial and grain terminal might be offered as one package to interested operators.( Fakhoury) A new terminal for cruise ships will be built where the main port is currently located, as part of major mixed-use development comprising integrated tourism, commercial, residential projects as well as public use facilities (Fakhoury). This echos the business strategy behind the move to utilize whatever resources are available for various activities and higher income generation. Augmenting the present attraction at the Aquaba coast ie. diving , the beach could be used for activities like cruising and water sports. Since Jordan is a country with limited water resources, it is imperative to take decisions, keeping in mind the ecology of the country in the long run. http://www.ess.co.at/SMART/CASES/JO/jordan.htm The Malmuke Fort and remains of the oldest known church are the historical treasures Aqaba has to offer the world. It is a pleasure to watch the lights of Israel's resort city Eilat at night from this coast. Egypt's Sinai Coast is also visible from this point. Statistics give Aqaba a cleaner edge over Sinai coast for Red Sea diving. Records reveal that Sinai coast gets two million annual tourists interested in diving and Eilat gets about three quarters of a million. Aqaba averages only about twenty thousand dives annually, and thus has tremendous scope for developing the tourism industry. Compared to its peer coast locations in neighboring countries, Aquaba offers a cleaner environment. Right now, as the flow of tourists is not much compared to neighboring countries, there is a lot of scope for developing this industry. Compared to its peer coast locations in neighboring countries, Aquaba offers a cleaner environment. There is a lot of scope for developing the tourism industry and the flow of tourists is not much compared to neighboring countries, as of now. Located on the Red Sea, Aqaba is Jordan's only water port. It is a great beach by itself and a premier diving stop. Since 2001 Aqaba was granted a special economic zone status, so prices of goods and services are considerably cheaper than other parts of the country. This has also led to the opening of many new hotels on the beach. The town center is a dense network of streets and alleys. There are many shops, small hotels and restaurants in this town centre. The Malmuke Fort and remains of the oldest known church are the historical treasures it has to offer the world. It is a pleasure to watch the lights of Israel's resort city Eilat at night. Egypt's Sinai Coast is also visible from this point. Statistics give Aqaba a cleaner edge over Sinai coast for Red Sea diving. Records reveal that while Sinai coast gets two million annual tourists interested in diving, Eilat gets about three quarters of a million. Aqaba averages only about twenty thousand dives annually, and thus has tremendous scope for developing the tourism industry. Since Aqaba is a relative newcomer in the filed of diving, it maintains and monitors its reefs. The late King Hussein inaugurated the Royal Diving Club in 1985. The club was established to promote safe and ecological diving and snorkeling at affordable prices. With over 400 varieties of coral and 1500 species of fish, Aqaba fills underwater dreams. Fortunately the variety of night life keeps pace. Dinning outside in the balmy sea breeze on specialties caught that day was a perfect way to end the Jordan sojourn. Jordan summed up, "while small, Jordan has it all". (Kent E St. John ) http://www.gonomad.com/destinations/0409/Jordan_part_two_southern.html References Fakhoury, Imad. Newswatch, Fairplay International Shipping Weekly 13 Jul 2006 http://www.tmaworld.com/solutions/ps.cfmpsid=7 May 10, 2007,2007 http://www.bridgesconsultancy.com/pdf/chapter2.pdf, May 10, 2007 http://irc.caltech.edu/courses/Global_Business_Strategy.htm. May 10, 2007 http://www.ess.co.at/SMART/CASES/JO/jordan.htm, May 10,2007 http://www.gonomad.com/destinations/0409/Jordan_part_two_southern.html, May 10, 2007,2007 http://www.planware.org/businessstrategies.htm#5, May 10, 2007, 2007 Read More