Aqaba’s Main Port to Relocate

Arab Open University

Faculty of Business Studies

BUSINESS BEHAVIOUR IN A CHANGING WORLD

TMA 02

Academic Year 2006/2007

Tutor Name: Mr. Karma

Aqaba’s Main Port to Relocate

Strategic decisions regarding the plan to relocate Aqaba main port must be dealt with painstaking attention to details. The managers should not forget the essence of rationality in crucial decision making, not to mention the influence of societal factors. The thorough analysis which includes logical and systematic steps is the right way to rationality. (Rationality and decision making, cited in the Introduction, B300 Study Guide, p10)

Relocation means freeing up prime coastal real estate areas and allowing for much needed expansion of port capacity. The present capacity is 30M tones per year, and this is likely to become 100M tones per year after the relocation. Weber (1964) says that this is an accounting type of calculation which is based on formal rationality. The decision is based on the expected 100M tones per year. The decision is simply translated into calculable or numerical expectations.

Success and growth of Aqaba may be hampered by irrationality. Faults and shortcomings like miscalculation, over-optimism, limited mindsets, false expectations, etc. contribute to that sense of being irrational in decision making. Messiness of reality must be a part of the contingency plan in decision making. What can possibly go wrong cannot just be explained by utter stupidity, error, or chance. (B300 Business Behavior in the Changing World, Introduction p.14)

Strategic decision is deemed important in order to cope with any eventuality or uncertainty. Mintzberg and Waters (1985) claim that decision strategies may emerge naturally rather than being deliberately decided in advanced. In contrast, Silverman (1970) and Clegg (1973) believe that decision-making is best analyzed by interpretation of figures and meaning, looking at interaction, and the use of common...