Assignment Task: The Alshaya enterprise dates back to 1890. For much of its history the firm concentrated in the real estate and construction industries. In 1983, though, Alshaya acquired the Kuwait franchise for U.K. retailer Mothercare. The firm's managers immediately started expanding Mothercare into other countries, including Turkey and Russia. As revenues and profits from Mothercare continued to grow, Alshaya began to prospect for other brands to add to its portfolio. In 2006, it acquired the Middle Eastern franchising rights for international clothing retailer H&M, followed quickly by regional franchising rights to Dean and Deluca (in 2008) and P.F. Chang's, Pinkberry, and Payless Shoesource (all in 2009).
Question 1: What situational elements most directly impact Alshaya's organization design?
Question 2: How have both corporate- and business-level strategies influenced Alshaya's organization design?
Question 3: What specific advantages and disadvantages does the matrix structure pose for Alshaya? Do the advantages more than offset the disadvantages? In what ways?
Question 4: As Alshaya continues to grow, how might its organization design need to be changed? Will the matrix design continue to be appropriate or will it need to be changed to something else altogether?