THINGS WEREN'T WHAT THEY SEEMED When your organization decided to go "global" two years ago, the executives didn't know what they were getting into. While the international market was attractive for your company's product, the overall plan wasn't executed well. The organization was having great success selling its baby bath product in the domestic market, and once that market was saturated, the organization decided to sell the product in South America, as part of its expansion strategy. Millions of dollars' worth of research went into product marketing, and great success was had selling the product internationally. It was only when the organization decided to develop a sales presence in Peru and purchase a company there that the problems started, as the Company was pursuing a 5 cost leadership strategy. While market research had been done on the product itself, the executives of the company did little research to find out the cultural, economic, and legal aspects of doing business in that country. It was assumed that the Peru office would run just like the Jamaican office in terms of benefits, compensation, and talent management practices. The company had also decided that they were sending an Executive member of staff from the home country to manage the business as the Chief Executive Officer (CEO). Adapted from CIA World Factbook and PKF Business Advisors. REQUIRED: Having reviewed the situation in the case above, as the Human Resource Management Consultant, respond to ALL of the following questions, to guide the organizations in its desire to enter the Peruvian market. Answers must make reference to the case where possible. I. In developing a compensation policy for expatriates being sent to Peru, identify and discuss three (3) critical objectives that must be considered to ensure that the compensation package is effective. In your answer you must also state why each objective is a critical consideration. 2. Identify and justify four (4) key components to be considered for inclusion in the compensation package for the expatriate being sent to Peru as the CEO. 3. Performance Management is important in managing the work and results of the CEO- Discuss three (3) constraints that will be faced in managing the performance of the CEO in Peru, and state one (1) implication for EACH of these constraints.