• Cheesecake Factory
1. What are the four distinct reasons why major western retail brands are drawn to the Middle East?
2. As a licensee of the Cheesecake Factory, what four important capabilities or services that the Alshaya Group provides and performs? For each of the capabilities you identify explain why these are best performed by Alshaya rather than by the Cheesecake factory itself. What are some risks incurred by performing these activities at arm’s length?
3. Surely the Cheesecake Factory with revenues (2019) of approximately $2.5 billion, net profit of $183 million, cash on hand of $58 million could have chosen to go it alone in the Middle East. What are some of the advantages of type of relationship Cheesecake Factory has with Alshaya (usually termed as COOPERATIVE CONTRACTUAL RELATIONSHIPS)? What are some disadvantages? Frame your responses in the context of the Cheesecake Factory.