Background

Bratwurstschmidt is the leading German fast-food chain in the United States. Headquartered in Chicago, Illinois, it has 2,300 restaurants run by 2876franchisees worldwide. Bratwurstschmidt (BWS) has decided to enter the exciting South Africa market, where it will have to recruit, train, and support local franchisees.
Ms. Toni Brewer, a U.S. national who has worked for five years in BWSheadquarters in Chicago, has been chosen for the role. She will relocate to Cape Town, South Africa in July. Her current salary is $159,000, and she is also eligible for a 25 percent bonus if she meets annual performance targets. Ms. Breweris married with a 14year-old daughter, a 12year-old son, and a 6-year-old daughter. Her husband, Greg, is a web developer who works at home. Greg and the three kids, who will be enrolled in school, will accompany Ms. Brewerthroughout through the assignment in Cape Town. BWSexpects the family to live in Cape Town for three years. The family is excited, but they will miss their 2,500 square foot home in suburban Chicago, which they bought for $428,000 in 2011. The monthly mortgage payment on their home is $1,639.

Assignment

As the Human Resources Manager of BWS, you have been tasked with putting together the compensation and benefits package for Ms.Brewer. The following are some important requirements:
1. Produce a two-currency spreadsheet with the budget for this assignment. Prepare and price out (using real costs) all of the company’s expenses that will be included in the expatriate compensation and benefits package for the first year of Ms.Brewer’s Cape Townassignment, including:
a. Salary and all legally required U.S. and South Africa benefits and payroll taxes.
b. Other benefits and allowances you feel are important to make the family’s stay in Cape Town successful.
c. All relevant relocation expenses.
d. Costs for the first year of the assignment in U.S. dollars: Assume a U.S. dollar –South Africa Rand exchange rate of USD1 = ZAR 12.44.
2. PLEASE DISREGARDINCOMETAXES –The companywill equalize income taxes.
3. Attach your spreadsheet toa short memo (maximumfive bullet points of no more than twosentenceseachin the body of your memo)in which you explain the philosophy or rationale behind your proposed package. Write no more than one page (12-point Times New Roman font, 1” margins). DO NOT suggest a lump-sum approach.
4. Provide a list of sources you used in completing the assignment.
5. Include the signed, handwritten Honor Pledge: “On my honor, as a student, this is my own work unless otherwise cited. I have neither given nor received unauthorized aid on this academic work.”

Background Bratwurstschmidt is the leading German fast-food chai...