READ THE CASE STUDY AND HELP ME ANSWER THESE 4 QUESTIONS! Questions: What do you think really happened in this case? What is Mrs. Santos’s position in the company? What issues of international business are found in this case? What do you think the consultant should have done?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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READ THE CASE STUDY AND HELP ME ANSWER THESE 4 QUESTIONS!

Questions:

  1. What do you think really happened in this case?
  2. What is Mrs. Santos’s position in the company?
  3. What issues of international business are found in this case?
  4. What do you think the consultant should have done?
about inefficiency, it also becomes clear that they see no way of changing dear old Mrs. Santos's way of
doing things. When asked hard questions about project objectives and what could be done to ease the
bottlenecks, they shrug their shoulders and laugh in a nervous, almost incongruous fashion. Finally, at a
key staff meeting just before you must file your interim report, the issue comes to a head. The EVP is there,
but primarily as an observer-as the big shot expat consultant, you are chairing the meeting. You present
the project as it has proceeded to date, doing your best to paint a positive picture, even going out of your
way to compliment some of the technical staff who have done outstanding jobs. But you feel that you can
no longer avoid the hard fact that important deadlines are about to be missed. It also seems clear to you
that 90 percent of the problems lie in that one particular department. When Mrs. Santos takes the floor to
summarize her department's work on the project, however, she paints a glowing picture. Things are really
moving along, targets are being met and exceeded, everything is copacetic indeed. You can't believe what
you are hearing! You know that everyone in the room must know that she is basically covering up, and
can't help being upset in that she is downright contradicting what you have been saying and trying to bring
to everyone's attention. Responding to your gut instincts and knowing for a fact that the data support your
position, you take a deep breath before asking a series of hard questions that leave Mrs. Santos with very
little wriggle room. She gives evasive answers, and everyone else around the table suddenly becomes quite
uncomfortable. People are shifting around in their chairs and looking out of the windows-a drastic shift in
mood. You immediately realize that you have made a major blunder, but it's too late to back off, so you
press ahead. After her third circular and evasive answer, the EVP clears his throat rather loudly, then
interrupts: "Perhaps we should move on with the meeting. These little details can be worked out later."
Within a month the project has fallen completely off track, precisely as you would have predicted.
However, rather than taking action to put things back on track, top management decides to rethink the
whole project, including their collaboration with the outside consultant (that being you). At the
recommendation of the EVP, they pull the plug entirely after the design phase. They thank you for doing
such a good job on the project design, reassure you they are anxious to work with you in the future, and
cancel the project as it was their contractual prerogative to do. In parting, the EVP tells you: "Our staff feels
that they can really carry this out on our own, and management agrees. Your work has been first rate, but
you know things can change. Call me if you ever need a reference."
Transcribed Image Text:about inefficiency, it also becomes clear that they see no way of changing dear old Mrs. Santos's way of doing things. When asked hard questions about project objectives and what could be done to ease the bottlenecks, they shrug their shoulders and laugh in a nervous, almost incongruous fashion. Finally, at a key staff meeting just before you must file your interim report, the issue comes to a head. The EVP is there, but primarily as an observer-as the big shot expat consultant, you are chairing the meeting. You present the project as it has proceeded to date, doing your best to paint a positive picture, even going out of your way to compliment some of the technical staff who have done outstanding jobs. But you feel that you can no longer avoid the hard fact that important deadlines are about to be missed. It also seems clear to you that 90 percent of the problems lie in that one particular department. When Mrs. Santos takes the floor to summarize her department's work on the project, however, she paints a glowing picture. Things are really moving along, targets are being met and exceeded, everything is copacetic indeed. You can't believe what you are hearing! You know that everyone in the room must know that she is basically covering up, and can't help being upset in that she is downright contradicting what you have been saying and trying to bring to everyone's attention. Responding to your gut instincts and knowing for a fact that the data support your position, you take a deep breath before asking a series of hard questions that leave Mrs. Santos with very little wriggle room. She gives evasive answers, and everyone else around the table suddenly becomes quite uncomfortable. People are shifting around in their chairs and looking out of the windows-a drastic shift in mood. You immediately realize that you have made a major blunder, but it's too late to back off, so you press ahead. After her third circular and evasive answer, the EVP clears his throat rather loudly, then interrupts: "Perhaps we should move on with the meeting. These little details can be worked out later." Within a month the project has fallen completely off track, precisely as you would have predicted. However, rather than taking action to put things back on track, top management decides to rethink the whole project, including their collaboration with the outside consultant (that being you). At the recommendation of the EVP, they pull the plug entirely after the design phase. They thank you for doing such a good job on the project design, reassure you they are anxious to work with you in the future, and cancel the project as it was their contractual prerogative to do. In parting, the EVP tells you: "Our staff feels that they can really carry this out on our own, and management agrees. Your work has been first rate, but you know things can change. Call me if you ever need a reference."
Case 1. FAMAGUSTA, Inc. FAMAGUSTA, Inc. (a fictitious name) is a large, non-US-based multinational
corporation (MNC) that has set up its new office in Manila. With the help of a few previous connections
and more than a little good fortune, you land your first contract within a relatively short period of time.
The job involves providing professional consultation and technical support on a joint venture project with a
local corporation. You will be working in the offices of the Philippine company, scoping and designing the
project, managing the implementation phase, and working with their domestic personnel to get the job
done. Your contract specifies an interim review after the design phase is completed, but top management
assures you that it is just a formality-–they definitely want to work with you for the whole project. You
review the facilities and résumés of both management and technical staff and everything looks fine. No
problem, you tell yourself as you tackle the project enthusiastically. At first everything is great. You are
given your own office and are told by the chief executive officer (CEO) to work directly with the executive
vice president (EVP) for the division; he seems highly supportive and tells you to call on him at any time for
whatever you might need. Although the working environment is relaxed by American and European
standards, the staff works long hours and everyone is unfailingly polite. You soon find yourself enjoying the
change of pace and the congenial aspects of the Filipino workplace. Until, that is, you become aware that
the project is slowly but surely falling behind schedule. Being the accountable party, you know it is up to
you to address the problem. After some quiet background investigation, you pinpoint the source of the
problem: the manager of a mission-critical department who appears to be horrendously incompetent. An
old lady nearing retirement by the name of Mrs. Santos has been with the company her entire career. The
analysis shows clearly that the problem lies in her use of outdated methods and her resistance to certain
innovative aspects of the project. Although your interactions with her have always been courteous, you
begin to wonder if she's trying to sabotage your efforts. In an effort to attack the problem you approach
the EVP to discuss the issue. You come in well prepared for the meeting, with hard copy documentation
tracing the bottleneck to Mrs. Santos's inept management. Thus, you are a bit surprised that he doesn't
seem to share your concern for the issue. Although he listens intently to what you have to say, he gives
oblique answers to your questions and seems to be avoiding the issue. But you know better than to press
too hard and quickly back off. At the end of the meeting, which was much shorter than you anticipated, it
is clear that he thinks you can work around Mrs. Santos and that he does not share your concern about the
problem. You do your best to keep the project on track, and keep looking the other way. However, the
problems continue to pile up and get even worse over the next few weeks. Murphy seems to lurk around
every corner, and every time you have to put out a fire the origin seems to lie in the same place: the
inefficient department head. You have lunch with a couple of her key employees and pump them for
information. Although what they tell you about operational matters confirms what you already know
Transcribed Image Text:Case 1. FAMAGUSTA, Inc. FAMAGUSTA, Inc. (a fictitious name) is a large, non-US-based multinational corporation (MNC) that has set up its new office in Manila. With the help of a few previous connections and more than a little good fortune, you land your first contract within a relatively short period of time. The job involves providing professional consultation and technical support on a joint venture project with a local corporation. You will be working in the offices of the Philippine company, scoping and designing the project, managing the implementation phase, and working with their domestic personnel to get the job done. Your contract specifies an interim review after the design phase is completed, but top management assures you that it is just a formality-–they definitely want to work with you for the whole project. You review the facilities and résumés of both management and technical staff and everything looks fine. No problem, you tell yourself as you tackle the project enthusiastically. At first everything is great. You are given your own office and are told by the chief executive officer (CEO) to work directly with the executive vice president (EVP) for the division; he seems highly supportive and tells you to call on him at any time for whatever you might need. Although the working environment is relaxed by American and European standards, the staff works long hours and everyone is unfailingly polite. You soon find yourself enjoying the change of pace and the congenial aspects of the Filipino workplace. Until, that is, you become aware that the project is slowly but surely falling behind schedule. Being the accountable party, you know it is up to you to address the problem. After some quiet background investigation, you pinpoint the source of the problem: the manager of a mission-critical department who appears to be horrendously incompetent. An old lady nearing retirement by the name of Mrs. Santos has been with the company her entire career. The analysis shows clearly that the problem lies in her use of outdated methods and her resistance to certain innovative aspects of the project. Although your interactions with her have always been courteous, you begin to wonder if she's trying to sabotage your efforts. In an effort to attack the problem you approach the EVP to discuss the issue. You come in well prepared for the meeting, with hard copy documentation tracing the bottleneck to Mrs. Santos's inept management. Thus, you are a bit surprised that he doesn't seem to share your concern for the issue. Although he listens intently to what you have to say, he gives oblique answers to your questions and seems to be avoiding the issue. But you know better than to press too hard and quickly back off. At the end of the meeting, which was much shorter than you anticipated, it is clear that he thinks you can work around Mrs. Santos and that he does not share your concern about the problem. You do your best to keep the project on track, and keep looking the other way. However, the problems continue to pile up and get even worse over the next few weeks. Murphy seems to lurk around every corner, and every time you have to put out a fire the origin seems to lie in the same place: the inefficient department head. You have lunch with a couple of her key employees and pump them for information. Although what they tell you about operational matters confirms what you already know
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