Please analyze the case below and answer each numbered issues:

Case

When the Budder Mining Equipment company decided to set up a branch office in Peru, top management felt that there were two basic avenues the company could travel. One was to export its machinery and have an agent in that country be responsible for the selling. The other was to set up an on-site operation and be directly responsible for the sales effort. After giving the matter a great deal of thought, management decided to assign one of their own people to this overseas market. The person who was chosen, Frank Knight, had expressed an interest in the assignment, but had no experience in South America. He was selected because of his selling skills and was given a week to clear out his desk and be on location. When Frank arrived, he was met at the airport by Pablo Gutierrez, the local who was hired to run the office and break Frank in. Pablo had rented an apartment and car for Frank and taken care of all the chores associated with getting him settled. Frank was very impressed. Thanks to Pablo, he could devote all his efforts to the business challenges that lay ahead. After about six months, the vice president for marketing received a call from Frank. In a tired voice, Frank indicated that even though sales were okay, he couldn't take it anymore. He wanted to come home. If nothing could be worked out within the next three months, Frank made it clear that he would resign. When his boss pressed him regarding the problems he was having, here is what Frank reported:

Doing business over here is a nightmare. Everyone comes to work late and leaves early. They also take a two-hour rest period during the afternoon. All the offices close down during this afternoon break. So even if I wanted to conduct some business during this period, there would be no customers around anyway. Also, no one works very hard, and they seem to assume no responsibility whatsoever. There seems to be no support for the work ethic among the people. Even Pablo, who looked like he was going to turn out great, has proved to be as lazy as the rest of them. Sales are 5 percent over forecasted but a good 30 percent lower than they could be if everyone here would just work a little harder. If I stay here any longer, I'm afraid I'll start becoming like these people. I want out, while I still can.

1.Situation

In this section of the case analysis, you will focus on identifying situational aspects that have led to the situation being reported in the case. These aspects should include relevant context, people-related, and organizational factors that have contributed to the current situation.Creating this profile relies on your understanding and application of key concepts, frameworks, and theories contained in the text and other course materials. Please note that the focus of this is to highlight the OB related issues; however it is understood that other management related issues may also contribute to the situation.

2.Problem

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3.Case Question(s)

Identify the specific question(s) that must be addressed in order to solve the central problem identified. There may be one or multiple. Think of what you would need to know in order to make a decision. Consider internal and external factors that may have influenced the current situation, whether mentioned in the case or not. Think about the functional information required in order to accurately address the central problem? List each question and briefly explain why it is pivotal to solving the problem.

4.Alternative "Solutions" (3)

Present three separate and independent courses of actions to solve this problem. Be sure to explain the course of action, the organizational actors and/or resources required to complete, benefits and risks of said action, and how/why the action could potentially solve the problem. Make your case with the support of internal and external sources.

5.Recommend

Identify and recommend the solution that is most tenable. Provide evidence to argue in favor of the chosen solution, explaining why this solution is the most tenable and/or appropriate for this situation. Assume you are presenting your idea to the organizational decision-makers; you want and need their agreement and support. Demonstrate your knowledge of the course material, the field of OB, and other relevant factors as support for your argument

6.Prediction

Briefly predict and paint a picture of what the situation looks like AFTER implementation of your recommended solution. How would the situation change? How does the organizational experience change for the actors involved?