Hotel

Capstone Project
Business Plan for a Hospitality Industry Customer Service Training Agency
Cecilia Golan
University College
University of Denver
MOTM 4901: Capstone Project
November 11, 2005
________________________
Greg Giesen
Capstone Advisor
____________________
Jason Wyrick
Academic Director
__________________________
James R. Davis
Dean
Golan 1
ABSTRACT
Nowadays, customer service in Argentina lags behind the United
States. For this reason, the hospitality industry could greatly benefit from
the expertise and guidance of knowledgeable and experienced professionals
trained in the USA. I will develop a business plan for a Hospitality Industry
Customer Service Training Agency in order to improve guest services skills in
Argentina. The principal purpose of the Training Agency will be to offer
customer service training sessions with some business consulting
occasionally during the first year. The agency will be based in the United
States with the target clientele being in Argentina. The training that the
agency will offer will be both in English and Spanish. In addition, it will be
virtual using the internet, teleconferencing and videoconferencing
technologies.
Golan 2
TABLE OF CONTENTS
1. Introduction 3
Thesis 3
Statement of the Problem 3
Statement of the Goals 3
Benefits of the Project 4
2. Literature Review
Problems with the Argentinean Hospitality Industry 4
3. Design and Implementation 12
Mission 12
Vision 12
Objectives 12
Modules 1327
Training 27
Virtual Training 28
WebEx 30
The Industry 36
The Market 38
SWOT Analysis 39
4 P’s 40
Michael Porter’s Five Forces 42
Operations 47
Risks 49
Mitigation 50
Assumptions 50
4. Results 51
5. Discussion 51
6. Conclusion 52
7. Appendix 53
8. Reference List 57
Golan 3
Introduction
Thesis
This research will establish the creation of a Denverbased Customer
Service Training Agency in order to improve guest services skills in
Argentina.
Statement of the Problem
As defined in this paper, customer service in Argentina lags behind the
United States. For this reason, the hospitality industry could greatly benefit
from the expertise and guidance of knowledgeable and experienced
professionals trained in the USA.
Statement of the Goals
The goal of this research is to create a business plan for a fulltime
Customer Service Training Agency based in Denver with the target clientele
being in Argentina. The Customer Service Training Agency will train people
for the hospitality industry that work in hotels located in Argentina. The
training will be both in English and in Spanish. In addition, it will be virtual
using the internet, teleconferencing and videoconferencing. The business
plan will include the company’s mission and vision statements, an

Golan 4
Argentinean market and marketing analysis and a business operations
section upon which the business will be created.
Benefits of the Project
I am writing this business plan with the intent of opening my own
future business upon graduation. I am originally from Argentina and moved
to the United States 6 years ago to do an exchange program in the Daniels
College of Business, University of Denver. Furthermore, I have a Tourism
and Hotel Administration degree, a General Business degree and I am
currently finishing my Masters’ of Applied Science in Technology and
Management. The establishment of this business will allow me to use all the
knowledge and experience acquired in the USA and benefit the hospitality
industry in my original country.
Literature Review
Problems with the Argentinean Hospitality Industry
In my opinion, it is time for the Argentinean hospitality industry to
improve its customer service. This necessity has increased since the 2001
devaluation of the currency. Suddenly, tourists from all over the world have
flocked to Argentina in order to take advantage of an inexpensive world
class lodging, dining and shopping atmosphere. The Argentinean customer

Golan 5
service could greatly benefit as I mentioned before from experts from the
United States. For example, Stanley A. Brown wrote a book named “What
Customers Value the Most” in which he explains how to use the voice of the
customer, the importance of teams and training, how to ensure that you do
not lose focus and other subjects (Stanley A. Brown, 1995). In addition,
“Lessons from the Nordstrom Way” is another customer service book that is
highly regarded in the hospitality industry. The most interesting part of this
book is how to empower employees to take ownership (Robert Spector,
2001). Also, the Disney Institute wrote a book named “Be Our Guest” that
explains the culture and values of Disney Corporation. This company is one
of the pioneers in Customer Service and many companies have taken ideas
from them. The Disney concept about customer service is very well known
all over the world (Disney Institute, 2001). Furthermore, “The Myths of
Japanese Quality” book is a very good source of information in order to
compare the quality of service between the United States and Japan and the
biggest cultural differences (Ray and Cindelyn Eberts, 1995).
Unfortunately, there are no articles to demonstrate that the
Argentinean customer service needs help. However, I had interviews with
hospitality professionals working in Buenos Aires, Argentina. For example,
according to Vanesa Gomez Fernandez, Sales Manager of the Elevage
Buenos Aires Hotel, the lack of training in customer service skills and foreign
languages is one of the biggest issues (July 1, 2005).
Golan 6
Issues with the Argentinean Customer Service
Lack of courtesy
According to my personal experience, customer service in Argentina in
general has been slow and unprofessional. For example, the idea of
constantly checking on the customers with questions such as: “Is everything
OK”? , “Is there anything else that I can do for you”?, “Would you like
another glass of wine”? , etc. is not engrained in the Argentinean culture.
Furthermore when one goes to a café/restaurant in Argentina, there is not a
hostess to escort guests to the table. Generally, the customers choose a
table by themselves. Also, there is not always an explanation of the special
of the day. In addition, when one wants the bill he/she needs to start
looking for the waiter.
Insufficient Language Skills
In a telephone conversation with the author on June 28, 2005, Marcela
Neira, the Director of Operations for the Spanish chain NH Hotels in Buenos
Aires, stated that another problem to be considered is the inability of many
employees within the hospitality industry to speak foreign languages
fluently. In Argentina, English is a necessity with French and Portuguese
being very helpful as well.
Golan 7
Inadequate Advanced Planning
Another problem with the Argentinean hospitality industry is related to
inadequate advanced planning. In a telephone conversation with the author
on July 1, 2005, Claudia Brea, the Director of Service Quality Training
consulting agency in Argentina, stated that in the hospitality industry major
customer service deficiencies are in relation with scheduling and planning.
Argentinean culture does not plan ahead in general. People live everyday
without thinking about tomorrow. In another conversation with the author
on June 5, 2005, Richard Maxfield, General Manager of the Omni Interlocken
Resort Broomfield, Colorado, echoed Ms. Brea’s comments stating that
scheduling and planning are two major points in order to maintain
outstanding customer service. “If we do not plan in advance and schedule
sufficient people to work, we can not offer good customer service. As a
result, a guest who did not receive good customer service is a customer who
is not planning to return.” For example, I went to one of the most well
known Argentinean Ranches located in Pilar/Lujan in 2004. The Ranch
organizes daily activities for visitors in order to show and explain typical
Argentinean culture. The tour I went on was named “Día de Campo” (Ranch
Day) and is the most requested tour they have. During that weekend the
Ranch received almost 50 people for the “Día de Campo” tour. One of the
activities included in the tour was riding horses. The majority of the tourists
signedup for this activity, but some were not able to do it. The major
Golan 8
problem was that the Ranch did not have enough employees to pursue the
activity and everybody wanted to go at the same time. In addition, the
Ranch did not schedule appointments; they did everything on the spur of the
moment. In addition, nobody there spoke fluent English which made it
difficult for foreign tourists to communicate with them. I personally went
with American tourists and they were not very happy about the
inconvenience. As a matter of fact, these people paid a high price and did
not receive the service expected. This Ranch belongs to an Argentinean
family business that opened 4 years ago. They started with a small
infrastructure and today have become a large company. They have also built
bungalows with the purpose of offering extended stays and meetingrooms,
in which they hold weddings and business meetings. They have all the
potential to keep growing and become the best Ranch in the Buenos Aires
area. It is clear that they need both customer service training and English
instruction in order to receive foreign tourists. This type of business is the
perfect target market for the Customer Service Training Agency that I am
proposing.
Exceptions
There are exceptions to the general rule of poor customer service in
the Argentinean hospitality industry. International hotel chains regularly
offer very good customer service. The former have their own training and
Golan 9
normally offer better guest services. Generally speaking, independent hotels
need help and look for external consulting services. One example is the Four
Seasons hotel located in Buenos Aires, Argentina, in which customers are
delighted with the service offered, according to Laura Blanco, Human
Resources Manager (July 8, 2005).
Conclusion
After considering these issues, I have decided to create a business
plan for a full time Hospitality Industry Customer Service Training Agency
based in Denver, Colorado with the target clientele being in Argentina. The
company will be based in Denver, Colorado because I am currently working
for the top upscale hotel brand located in this state and I am planning to
acquire more American experience.
The principal objective of this agency will be to train people in order to
improve customer service skills. “The first rule of the service is simple to find
the right people with the right attitude, and then teach them the rest”
(William F. Orillio 2004). Mr. Orillio goes on to say “Regarding training, this
is an industry where we have to constantly train, and when we are done
training, train again, and then train again”.
Golan 10
Training and Technology
Finally, the training will take place either at home and/or the training
center located in Buenos Aires, Argentina. It will be equipped with the
necessary technology for teleconferencing and videoconferencing.
Competition
Currently, there is one consulting agency offering recruiting and
customer service training services in Argentina. The company that I propose
will be different because: 1) it will be based in the USA allowing the agency
to offer the most updated and sophisticated customer service techniques, 2)
the owner acquired training and work experience in the USA (Marriott
International and Omni Hotels), 3) the training will be virtual using the
internet, teleconferencing and videoconferencing, 4) the agency will have a
training center in Argentina.
Other Customer Service Training Agencies
Nowadays, there are many organizations that offer services in order to
improve customer service skills for the hospitality industry. For example,
Service Quality Training (SQT) is the only consulting agency located in
Argentina. The company offers customer service programs and online
training as well as recruitment of personnel services (SQT 2005, Hospitality
Training). Phone Pro is an American company that provides telephone skills
Golan 11
training workshops and seminars focusing on customer service and coaching
(Phone Pro 2005, Telephone Skills Training Programs). Another American
company, Moran Consulting, Inc is mentioned at customerservicetraining.net
and offers customer service programs and training inhouse (Moran
Consulting 2005, Service Essentials for Telephone). Carol Verret Consulting
and Training based in Denver/Colorado provides coaching, seminars and
online training for the hospitality industry as well (Carol Verret 2005,
Creating a Culture of Customer Service). Sterling Consulting Group (SCG) is
another American organization to be considered. The principal purpose of
this company is to help other companies become more customerfocused.
SCG works for a variety of industries and offers customer service and e
training programs as well as other programs (Sterling Consulting Group
2004, The Service Advantage). The final company that I researched is
Strategic Futures. This company offers training, consultation and speaking
engagement services. The company has a customer service training
program. It also offers training workshops and a library with a variety of
booklets (Strategic Futures Consulting Group 2005, Customer Service
Training). As we can see, a large number of the consulting agencies
supporting the hospitality industry are from the United States. In my
opinion, this is proof to support why the United States’ hospitality industry is
one of the best in the world.
Golan 12
Design and Implementation
Mission
The mission of the company will be to improve customer service skills
in Argentina. In order to accomplish this mission, the organization will need
to focus on training both in English and Spanish.
Vision
The vision of the company is to become and be recognized as the most
professional, knowledgeable and technologically updated training agency for
the hospitality industry in Argentina and South America.
Objectives:
1. Define the value of customer service and explain the meaning of
customer service to the Argentinean culture.
2. Offer the most updated customer service techniques taking advantage
of the USA location.
3. Sign contracts with the major investors of hospitality industry in
Argentina. Position Argentinean customer service as one of the best in
South America in the next three years.
Golan 13
The Customer Service Training Agency will offer 5 modules named 1)
Knowing and Understanding Guests, 2) Internal Customer, 3) Quality of
Service, 4) Telephone Skills and 5) Handling Complaints. Every module has
duration of 1 and/or 2 months depending on how many classes the customer
is planning to take per week.
Module 1: “Knowing and understanding guests”:
“You know what people want and you build it for them”
Walt Disney
The Customer Service Training Agency will train Argentinean
hospitality professionals in order to understand what people want when
looking for vacation, what their expectations are. Once we know what people
want, we can offer the services expected in order to achieve excellent
customer service. Primarily, we need to know and understand guests’ needs.
According to Disney Institute, there are two major types of information
developed by guest research (Be Our Guest, 47).
1) Demographics: This type describes physical features of a group and often
implies quantitative data. For example: 1) who customers are, 2) where
they come from, 3) how much they spend, 4) how much effort they expend
to get here, 5) what type of job they have, etc.
2) Psychographics: This type helps to understand guests’ mental conditions.
For example: 1) what customers need, 2) what they want, 3) what emotions
they experience,4) what preconceived ideas they have.
Golan 14
In addition, there are four elements to take into account in order to achieve
fundamental guest services (Be Our Guest, 48). The first element is
customer needs. The translation is “What do guests need when they come to
Disney World”? The answer could be a vacation. The second component is
“Wants”. It means customers’ objectives. The customer is looking for
vacation plus memories with their families. The third element is
“Stereotypes”. They are thoughts that the guest has ahead of time. For
example: Disney World staff is completely friendly. And the fourth element is
emotions. Emotions are feelings that customers experienced during their
stay with the organization. They could be either positive such as, Disney
World is very well organized and/or negative such as, we need to wait in big
lines for every form of entertainment. Once we understand and know our
guests and have learned the four components that allow organizations to
achieve excellent customer service, we are ready to establish the
Fundamental Guidelines for Guest Services (Be Our Guest, 87).
Fundamental Guidelines for Guest Services
1) Smile and make eye contact: Start and end every Guest relation
with direct eye contact and a sincere smile.
2) Greet and welcome each and every guest immediately: Extend the
appropriate greeting to every guest with whom you have contact. For
example, identify customers’ names whenever possible.
Golan 15
3) Demonstrate appropriate body language (attentive appearance –
good posture – appropriate facial expression).
4) Search for guest contact: Offer assistance constantly.
5) Provide immediate service recovery: Resolve a guest issue
immediately. Always find an answer for the guest. Take responsibility of our
guests’ problems.
6) Avoid talking about personal or job related problems in front of a
guest. It is an unacceptable behavior.
7) Put yourselves in your guests’ shoes. Make decisions that privilege
our guests.
8) Never say NO to a customer request. There are always different
alternatives for a solution.
9) Thank each and every guest: Extend every guest a thank you or
similar expression of appreciation as she/he leaves your area.
10) Remember that our mission is to make our customers’ happy.
Quality service key points (Be Our Guest, 171)
1) Anticipate customers’ needs.
2) Answer the phone within 3 rings.
3) Prepare your staff to communicate with guests: Answering questions
immediately is an important component of customer satisfaction. Supply
Golan 16
your employees with the right information in the right manner at the right
time.
4) Establish processes for guests with special needs: Treat all your guests
like VIPs. Identify guests with special attention such as children,
international guests, guests’ with disabilities.
5) Update service processes continuously: Improve your service processes
at every opportunity. Modify design flaws, implement new technologies and
techniques.
6) Establish a reward program for the most frequent guests.
Understanding the needs and expectations of different guests will help
the Argentinean hotels to improve quality of service and focus on
differentiation. Every customer is different and has special needs and
expectations.
Module 2: Internal customers
Who are the internal customers’ in the organization? Internal
customers are the people that have a passion to serve and possess the right
attitude. The attitude establishes professionalism, interest, responsibility,
and devotion to deliver excellent customer service (The Customer Service
Activity Book, 1, 2005). One may have an excellent knowledge of the
hospitality industry, one’s company and services provided and incredible
skills but, without the right attitude the appropriate customer service will not
Golan 17
happen. In my opinion, the service attitude is the major component in order
to succeed. Training is an important part of keeping excellent customer
service levels. Every company should offer quality seminars and workshops,
develop and teach advanced quality training classes and provide specialized
“howto” training programs. Companies should establish a training program
in which every 90 days at least employees are refreshing old concepts and
acquiring new ones (What Customers Value Most, 147, 1995).
One important piece of the training is to empower employees to take
ownership in order to provide excellent customer service. According to
Robert Spector, “You empower people by giving up the power yourself”
(Lessons from the Nordstrom Way, 123, 2001). For instance, Nordstrom
gives the frontline the power to make any type of decision with the purpose
of making customers’ happy. Nordstrom culture flows from that simple
premise. The customer is first and the associates are second in their
pyramid. Associates are the closest to the customers. They are the ones in
direct contact with the customer. Management function is to help, coach and
motivate the front line. The process of empowerment includes the belief that
employees need to understand that they can make a difference in the life of
the customer that they are serving at that moment. For instance, a guest
that arrives at a hotel at 1.00 am after experiencing some delays at the
airport is a great example. The first contact at the Front Desk is the one
responsible for making that guest happy and/or relieving some stress from
Golan 18
him/her. A great and appropriate attitude will change the guest’s mood.
There is not anything that a good hospitality professional cannot handle.
Nordstrom believe that using common sense is a major tool to succeed. In
addition, every employee is a manager and can make a difference. The
empowerment process also includes the reimbursement of the money when
the company is not offering the service promised. They look at the long
term. It is a lot harder to go out and find for new clients than it is to
preserve an existing one. If we are able to keep the client and make him
happen, then the business will be around for a long time. Nordstrom allow
their employees to do whatever they need to make the customers happy and
assure that they are coming back. Furthermore, the empowerment process
includes the belief that their employees are professionals, have good
judgment, make the right decisions and behaviors. The company does not
set specific rules for different behaviors. No one will ever be fired for making
a mistake. In fact, the company wants their individuals to learn from their
mistakes. When they make the same mistake several times they have
another discussion with a supervisor and try to evacuate all type of doubts.
Empowerment is always possible and necessary. Good employees will need
autonomy and have their decisions respected. As a general guideline
Nordstrom, 1) trusts the people that they hire, 2) hires people who like to
assume responsibilities and ownership, 3) hires people that know how to
work with freedom. Empowerment is a great process and in the longterm
Golan 19
develops accountability. Also, it pushes the decision making responsibility
and authority down to the frontline which in fact is where it belongs.
The Argentinean Customer Service needs to understand the
empowerment process and the positive impact obtained among employees,
managers and guests. The employees should be able to use his/her power in
order to achieve customer satisfaction.
Module 3: Quality of Service
We all know the term quality but sometimes we do not understand
what it really means. According to Ray and Cindelyn Eberts, ”Quality is
defined as conformance to set requirements and is associated with the
reliability of the product/service” (The Myths of Japanese Quality, 52, 1995).
Applied to any industry it also means permanent improvement, self
discipline, justin time, practice and quality function deployment.
Organizations need to think about the following items to achieve quality:
1) Permanent purpose of improvement: Training, research, and upgrade
processes are examples of improvement. In fact, improvement will
allow the company to stay in business in the longterm.
2) Selecting product/services considering quality instead of price. We
understand that poor quality will result in more disagreement and
rework.
Golan 20
3) Avoiding recruiting masses of employees. Organizations need to recruit
the right person for the right position.
4) Recruiting associates with the promise of lifetime employment. If an
associate feels that his/her job will be lost, there is little motivation to
accomplish the job with high standards.
5) Obstacles between different departments. Associates must work as a
high performance team. Harmony and conformity should prevail at the
expense of personal recognition. Conflicting objectives of different
departments must be solved and must not affect the company.
6) Eliminate slogans such as increase productivity, increase savings,
increase revenue. They do not help the quality process, in fact they
damaged it.
7) Establish a program of education and retraining.
8) Involve top management and frontline to achieve quality
transformation. Both management and lower level can provide the
appropriate direction.
9) Listen to the voice of the internal customer (guests) using surveys,
comment cards, telemarketing, etc.
Every industry should be prepared to avoid cognitive dissonance
among customers. The definition according to Ray and Cyndelin Eberts is
“We build up certain expectations, and when our expectations are not met,
we experience cognitive dissonance and blame ourselves instead of changing
Golan 21
our expectations" (The Myths of Japanese Quality, 55, 1995). When hotels
are experiencing cognitive dissonance in their guests the quality cycle must
be reviewed.
Argentina needs to specifically improve internal processes in order to
achieve excellent quality of service. In general, the different departments of
hotels do not work as a High Performance Team. As a result, they cannot
deliver quality.
Module 4: Telephone Skills
According to Suellen Richardson, whoever answers the phone first in a
company, establish the tone of the entire conversation during the first 35
minutes (Phone Pro, Sometimes the Simplest Things Can Mean the Most,
2001). The attitude that the customer will have will be determined by what
we say and how we say it when we answer their phone call. Many customers
when calling about a complaint have not decided which side of the fence
they are on. The more pleasant, agreeable, serene and reasonable voice that
we can offer over the phone, the better results we will obtain. The customer
will take the opposite direction if our receptionist is unpleasant, confused,
and upset. A great example is when we call to a Spa to make a reservation.
The company not only uses calming music in its menu but also the
receptionist provides a tranquil and relaxing sensation when making the
reservation. Furthermore, the situation can be aggravated when the phone is
Golan 22
not answered in a timelymanner. We understand that the standard is within
the 3 rings. Another example that could make the situation worse when
making calls is when the customer is on hold, and company is trying to sell
more products/ services through commercials or advertisement. Besides the
opportunity to recover an unsatisfied customer, there is always the
opportunity to impress First Time Callers who had not have an experience in
your property. An appropriate tone of voice and greeting will generate a
pleasant sensation to the new customer improving the chances of selling
your service, close future businesses, and demonstrate interest in your
company. Every company should evaluate the appropriate greeting taking
into account the type of business that they provide. For the hospitality
industry we need a brief, helpful and friendly greeting. Furthermore, the
importance of the tone of voice is critical according to Desirae Haynes
(Phone Pro, The Critical Importance of Voice Tone , 2001). It has been
demonstrated that you reflect what you think. Positive thinking and thoughts
confer our behaviors. Part of that behavior is Voice Tone. Using a negative
tone of voice with a guest is equal to a major nono. How about a neutral
voice? A neutral voice implies a negative tone of voice. Every guest should
feel that he or she is unique and important to us. A neutral voice irritates
customers. When neutral voices dominate a situation, we generally loose
those customers. The customer will find equal services in another company.
The tone of voice is especially important in the hospitality industry in which
Golan 23
we are selling vacation, enjoyable stays, nice memories, etc. A negative tone
of voice is unacceptable in this industry. Lively, ingenuous, enthusiastic
individuals, with a passion to serve other people are the right candidates for
the hospitality industry. Some basic communication etiquette:1) Greet with
a sincere voice, 2) Be interesting, 3) Anticipate and manage customers’
expectations, 4) Apologize whenever possible, 5) Listen without interrupting,
6) Answer with adequate sensitivity (show empathy or warmth), 7) Be
polite, 8) Appreciate a person’s time, 9) Make the other person feel
important and respected and 10) Avoid rushing the conversation, spend the
necessary time with every customer.
In summary, remember that customers’ should feel comfortable and
welcome when calling company even if it is only for a few minutes. It is
during those first few minutes that we can change the attitude of our
customers. In addition, it is only during those few minutes that customer will
get the first impression of the company. In fact, remember that we never
have a second chance to make a first impression.
Unfortunately, in Argentina telephone skills have not been developed
appropriately yet. Customers can be on hold for 10 minutes and it is
considered normal. In addition, greetings such as “Good Morning, thank you
for calling Marriot Hotels, how can I help you”? are not the general standard
to answer the telephones in some hotels.
Golan 24
Module 5: Handling Customer Complaints
According to John Tschohl and Steve Franzmeier, complaints are
beneficial in order to improve a quality service system (Achieving Excellence
Through Customer Service, 17, 1991). Customer service should stimulate
complaints. Complaints are problems and when there are problems, there
are opportunities. In this case they are opportunities to rectify bad service
mistakes and avoid them in the future. Companies usually hear about
complaints thanks to customer service programs. For instance, Omni Hotels
use a ranker called Medallia that is sent via email to their customers and
comment cards. Indeed, a program that encourages complaints attend to
increase profits. Normally customers that complained and receive an answer
are less likely to air their complaints throughout the community. In fact they
are impressed by the way that the company handled the complaint and are
planning to buy again and/or come back. Customers start to recognize
professionalism and respect toward the brand and develop loyalty when
complaints are handled satisfactorily. A company should ask customers to
complain. It needs to find an easy way for customers to complain (comment
cards, emails, 1800 numbers, etc). Formulas have shown that solving
customers’ complaints turn into profit of future stays plus profits from
referral stays. On the other hand, failing to resolve complaints means loss of
future stays plus loss of wordofmouth comments minus savings from not
resolving onetime complaints. Furthermore, a complaint in order to be
Golan 25
effective should be handled properly and quickly. When the complaint
procedure is not appropriately applied, customers will communicate the level
of dissatisfaction immediately. Some companies prefer to use the complaint
procedure and some companies prefer to avoid the complaint procedure.
This is an example of a company who avoids the complaint procedure. For
instance, during checkout the customer complained and said that he
experienced a terrible stay. Some companies will comp his/her stay and will
apologize immediately. In addition, they will offer another stay to be used in
the future in order to rectify the bad customer service. A company who uses
procedures would ask for personal information, would make the customer
fillout a complaint form and will process the complaint. In my opinion, it is
more effective finding a solution immediately.
Lorna Opatow, president of the New York marketing research company
says that “Customers who complain are doing us a favor. They are giving us
an opportunity to keep their business” (Tschohl and Franz Meier,238,1991).
Complaints are also lessons from which we improve our service. They allow
us to impress our customers by looking for the necessary solution in order to
achieve customers’ satisfaction.
There are some questions that every department in an organization
can use in order to deal with complaints and decrease the number of them:
1. What are customers’ principal expectations?
2. How well is my company meeting customer expectations?
Golan 26
3. What procedural improvements are needed to make sure that service
meets customer expectations?
There are a couple of techniques to handle complaints and cool down
customers:
1. First thing is to offer a sincere apology. Use sentences such as
“Thank you for your patience”, “I apologize for the delay”.
2. Give a customer a warm hello and smile.
3. Listen actively. Understand the guest situation with responses such
as “I see’, “I can appreciate your problem”. Ask questions about the
issue.
4. Show empathy; put yourself in the customers’ shoes. Once a
customer feels that you understand the situation and you are
engrained into the problem.
5. Take responsibility for the problem. Make the customer feel
important with responses such as,“Mr. X we will take care of your
problem”.
6. Resolve the problem. Recognize possible alternatives and/or one
alternative that can solve the issue.
There are a couple of suggestions for employees to handle complaints:
1. Do not take it personally.
2. Do not argue with a guest.
Golan 27
3. Do not accuse another employee and/or department.
4. Do not use language that implies that the customer caused the
problem. Use neutralizers, statements like “The gift certificate
appears to have been omitted”. This is a nofault approach
suggestion. Another example is “Let me see if I have this right”.
The customer will change his attitude because there is no judgment
in the language utilized.
5. Take it as a challenge in which you will need to use creative
thinking.
Argentinean Customer Service needs to be more professional handling
complaints. I have seen many cases in which employees took it personally
and argue with the guest. In addition, they need to improve the complaint
programs and make them available to the guests.
Training
Business in general spends too little time training and motivating
frontline employees whom they treat as the lowest workers on the ladder
Time Magazine
According to John Tschohl and Steve Franzmeier, we need to
understand that frontline is the level that has direct contact with our
customers, and our success depends on the training and education that we
Golan 28
provide to them. For example, we can spend thousands of dollars in
marketing in order to bring people into our property but poor customer
service immediately turns them away, reinforcing the image of the
competition. In addition, we understand that developing new customers
costs five times as much as keeping customers we already have. During the
last 5 years training has been defined as good or bad taking into account the
number of days. For instance, 5 days training is better than 4 days, and 4
days is better than 3 days. There is some validity to this argument but the
duration of the training is sometimes determined by the necessary logistic
that the company needs in order to avoid the interruption of the business.
Training is more effective when it is implemented during an employee’s early
job experience in the organization. It is easier to change attitudes and
customs during a learning mode than when they are already working in the
company. Employees see future opportunities when they are receiving
training and, as a result they are motivated to learn and practice exceptional
service. If employees are happy with their work environment, they are able
to deliver better customer service and are more likely to value and respect
customers (Achieving Excellence Through Customer Service, 1991).
Virtual Training
The business plan of the Customer Service Training Agency will
implement virtual technology training. One of the reasons is that nowadays
Golan 29
travel costs have become very expensive. Another reason to be considered
is that receiving virtual training will allow the customers to be updated with
the high standard of the hospitality industry from the USA constantly.
The virtual technology will distinguish us from the competition by
developing an effective, convenient, high tech and updated training and
training center. The virtual technology will empower the customers to obtain
fast training.
During the last few years, the integration of the telecommunications
and computers generated the World Wide Web. There are 2 specific reasons
for which the web succeeds already: 1) cost and 2) convenience. Companies
decrease their costs by not using the voice to voice customer care every day
and the convenience of access from anywhere at anytime is really
advantageous. The online access from home will continue to grow as a
result of low cost internet access devices and the popularity of having
personal computers at home. The idea of “workathome’, “studyathome”,
“get training online” is increasing and this is one of the key points for which
the webbased training for this training agency will triumph.
The Customer Service Training Agency will offer webbased,
teleconferencing and videoconferencing training. We mean by “webbased
training” a computerbased training in which an individual has different
options of online trainings that simulates the class environment. In
addition, the customer learns at an individual pace and at the most
Golan 30
convenient time. According to the TeleTraining Institute the term
“teleconferencing” refers to twoway electronic communications between
two or more groups, or three or more individuals, who are divided by
different locations. In order to interconnect people, teleconference systems
use telecommunications channels that scope from regular telephone lines to
satellite links. The only requirement is that the medium should be interactive
offering people the possibility in each location to actively participate in the
meeting or teleconferenced session. Furthermore, videoconferencing
audio and video media” refers to communication both communication
voice and fullmotion video images. The displays may be of people objects,
graphics, video tapes – virtually everything that can be captured by
television camera (TeleTraning Institute, 2005).
WebEx
The company considers that the most appropriate tool to implement
the virtual training is WebEx Communications, Inc. “WebEx delivers its suite
of web meeting applications through the global WebEx MediaTone™
Network, an IPbased network specifically designed for secure web
collaboration. The network, a small, private subset of the Internet, provides
unmatched levels of service integration, security, personalization and
performance. MediaTone technology enables WebEx meeting participants
worldwide to enjoy the richest set of data, voice and video interactive
Golan 31
services together with unparalleled network performance and reliability”
(WebEx, 23 Sept). One of the advantages that WebEx offers is that no new
software or hardware is required. As a result service is easy to implement
and adaptable to changes. WebEx offers unparalleled crossplatform
support, allowing participation from Windows, Mac, Linux, and Unix
environments. This product is ideal for this project because releases the
company and customers from the time and geographical limits that can
restrict the ability to get together in person. For instance, one can meet
anyone, anywhere over the web and interact as if one is facetoface.
Deliver presentations in any format, exchange documents and files, present
or work together in any application, control another desktop remotely and
provide video from one or more points are some of the benefits that WebEx
offers.
WebEx’s principal technological advantages are:
1. Security: WebEx offers security for its data. It is the only web meeting
application that has earned Web Trust and SAS70 certification. These
certifications are awarded for trustworthy ecommerce and secured controls
and safeguards.
2. Data Security: All meetings are protected to ensure that one can
conduct even the most sensitive meetings with confidence.
Golan 32
3. Confidentiality: WebEx does not track the meeting unless the client
specifically wants it to be recorded.
4. Availability: The WebEx Media Tone Network delivers alwaysavailable
“dialtone” reliability for the delivery of global multimedia web
communications. The Media Tone Network operates at 50% capacity and
easily allows its customers usage in any situation. The server is 100%
reliable operating 24 hours a day, 7 days a week.
5. Performance— Quoting from WebEx’s marketing materials:
“To ensure that your meetings stay on track without a hitch in service,
the MediaTone Network offers several levels of fault tolerance to provide
seamless & transparent failover, unmatched in the industry” (WebEx, 23
September)
6. Integration: WebEx services can be integrated with any other application
making easier the decision making process when having important
information on the screen. In addition, it is easy to use. The integration
advantage provides the user with only one password moving from one
application/document to another one according to the meeting requirements.
7. Audio: WebEx offers integrated audio services to scan and control the
audio activity during the WebEx meeting. All WebEx applications are
Golan 33
available with different choices of audio services. One can even use one’s
personal audio account.
8. Remote support: WebEx provides remote support. The technical support
representatives are able to see issues from their desks and provide an
immediate solution. WebEx support center eliminates the idea of handling
support issues via phone and/or site visits. The support center is open 24
hours a day, 365 days a week. It also offers tollfree calling worldwide,
provides an average hold time of less than 1 minute, first call resolution in
95% calls and 24hour response to email inquiries.
In summary, WebEx is an incredible tool to be applied for training
purposes. It converts the web into an interactive learning atmosphere and
classroom experience. One is able to meet and reach more people at an
affordable cost. The trainer can interact with the students in real time, show
applications, accommodate oneonone meetings, accommodate any size of
meetings, arrange small group breakouts, set up hands on labs, provide and
grade tests, and share answers and listen to different opinions during a
session.
As I mentioned above, the virtual training will be integrated by
different modules. The names of the modules are 1) Knowing and
Understanding Guests, 2) Internal Customers, 3) Quality of Service,
4) Telephone Skills and 5) Handling Customer Complaints.
Golan 34
I will adjust every module according to each company features and
requests. It is not the same to train employees from a hotel located right
downtown than to train employees from a Resort located outside the city.
For instance, if I have to train employees in “Knowing and Understanding
People” I will study the market and clientele of that specific property. Once I
have had accomplished the study and come up with an action plan, I will use
website training, teleconferencing and/or videoconferencing. I will cover the
different points of this module with a variety of examples from similar
properties. Each training using teleconferencing and videoconferencing can
accommodate up to 12 people. For an online training, individuals will need
to make appointments if they will use the terminals of the training center
and/or will take it from other computers. After every module is finished in a
videoconferencing, there will be a space dedicated to Q&A with hospitality
professionals in order to resolve any doubts. After the session, the
customers will go online and pass a test. As I mentioned before, the
training will be both in Spanish and English. The reason is that English is the
second language in Argentina and the country receives thousands of
American visitors. In addition, the client has the option to train their
employees only online. Users will go online and participate in a variety of
readings and interactive activities for every module. Once every module is
completed, the users will also take an online test.
Golan 35
Teleconferencing only could be used for training purposes but I
assume that clients will request it more for Q&A in relation to different
modules and/or communication doubts.
The video conferencing could be more attractive and effective than the
website training because it displays moving images, resembles facetoface
meetings, helps with the visualization process and allows interaction. There
is a continuous presence. Furthermore, it gives one the opportunity to talk
with the Director of the company and other American people working for the
hospitality industry at the end of the session. The type of training requested
will depend on the needs and expectations of every customer. In addition,
the training program will be implemented by the author or by highly skilled
facilitators in order to be effective especially at the beginning of the
company life.
The key points that would make a company choose a virtual training
are:
1) To receive world class training.
2) Costs are inexpensive when you think that the company is based
in the USA and you evaluate the quality of the training received.
3) Maximum elearning process delivering a dynamic class,
teaching updated techniques and skills in a real time.
4) Instant interaction during training classes (videoconferencing).
5) Possibility of recording classes via teleconferencing.
Golan 36
6) Flexibility (Accessible from anywhere and at anytime).
7) No more travel arrangements.
8) High customer level satisfaction.
9) Resolve technological issues remotely.
The Industry
Argentina entered its fourth year of economic recession in 2002. This
recession, of course, impacted the hospitality industry among other
industries. In addition, September 11 th contributed to the decline of travel
industry revenues. By the year 2002, GDP shrunk by 10.9%, unemployment
reached 19% and the Argentinean peso was devalued by 70% in the month
of January. Surveys showed that the economic situation affected half of the
population. Today, 50% of the Argentinean population is poor.
Argentina does appear to slowly be recovering. The Economist
Intelligence Unit (EIU) demonstrated that after 17 consecutive quarters of
decline, Argentina’s GDP increased by 5.4% during the first quarter of the
2003. Overall, GDP was expected to grow by 5.1% during 2003 and
unemployment was expected to decrease by 16%. In May 2003, the country
experienced a political change electing Nestor Kirchner as the new president.
Furthermore, late figures from the CEDEM (Centro de Estudios para el
Desarrollo Económico) reported a strong growth in tourism arrivals to the
city during the first half of 2003. During the first six months of the year, the
Golan 37
number of international and national visitors to the city went up by 45.5%,
while international visitors increased by 181.2%. International visitors are
basically coming from Europe, North America and Chile.
The loss of the fixed parity in January 2002 and the consequential
devaluation of the peso had a positive impact on the hospitality industry.
Tourists started to come to Argentina in order to enjoy a worldclass
shopping, dining and atmosphere. Also, Argentina was considered one of the
most expensive countries in South America in the past, but the devaluation
of the currency made Argentina a more affordable option for visitors. As a
result of the growth taking place in Argentina, many international carriers
increased the number of weekly services to the country again.
Recently, a number of hotels worth millions of dollars drove the
construction sector in Buenos Aires and other places in the country due to a
continuous growing process. Argentine hotel conference rooms can cost less
than what neighboring countries are charging. For instance, in Chile a
conference room for 50 people can cost as high as US$1,700 for three days;
in Brazil, the same service can cost US$ 1,200. In Argentina, a conference
room for 50 people can cost US$ 250 at a luxury hotel. For instance, the U.S
hotel operator Crown has started construction on two hotels in the
mountainous province of Río Negro and more projects are on the way.
Another example is Conevial Constructora and Inversora , the company has
invested US$12 million to build three new luxurious ecolodges. The eco
Golan 38
lodges will target high end tourists willing to spend $500 dollars a night. The
OrionAsociados development company is another example. The company
has started the construction of 2 boutique style hotels with 50 rooms in
Patagonia (in the south of the country). The two hotels will cost $ 2.6 million
each to develop. According to Mario Koehler, President of Orion Asociados,
Real Estate costs in Argentina are inexpensive in relation to past periods of
time.
In summary, we can see that the business travel industry continues to
grow in Argentina.
The Market
The training agency target market is identified as independent hotels
located in Argentina and/or hotels under construction. It will focus
specifically on hotels and it will not branch off into other areas such as
theme parks, restaurants or any other industries that involved customer
service. Companies such as OrionAsociados and Conevial Constructora and
Inversora are the perfect customers for the training agency. They do not
represent any chains and they have the monetary capability to pay for
trainings services. They are involved in projects in which the guests are
willing to pay expensive rates and are expecting high customer service
standards.
Golan 39
As I mentioned above, international chains already come with a
training provided from headquarters. Occasionally, international chains can
request some consulting/training services in relation with the Argentinean
culture. These will be only a few cases.
The agency is willing to cover the entire country. The biggest market is
in Buenos Aires city as well as many touristy areas in the South and North of
the country.
SWOT Analysis
Strengths:
1. The management team has international experience (The only
competitor named Service Quality Training/SQT does not have international
experience).
2. The virtual training will be accessible from anywhere with
teleconferencing and videoconferencing (SQT does not offer teleconferencing
and videoconferencing).
3. The company will be based in USA (SQT is based in Argentina).
4. The training will be in English and Spanish (SQT training is in
Spanish only).
Weaknesses:
1. The agency will be the second in the Argentinean market.
2. WebEx is an expensive technology.
Golan 40
3. The Director will not have direct contact (physically) on a daily basis
with customers.
4. The company does not have previous experience with WebEx.
Opportunities:
1. The virtual training is expandable to the rest of South America
2. Currency devaluation in Argentina.
3. Limited competition.
Threats:
1. The company is outsourcing technology for the virtual training.
2. There is only one supplier that offers the necessary technology
features by the company.
3. 1 year minimum contract is required with the technology supplier.
4. The internet training (webbased) uses the same technology as the
competition.
Analysis of 4 P’s
Product/Service:
The product will be virtual training delivered by hospitality
professionals using the internet, teleconferencing and videoconferencing.
The training will be accessible from anywhere and will be offered in English
Golan 41
and Spanish. The agency will be based in the USA and will offer the most
updated and sophisticated techniques. These techniques have been acquired
by the owner during her years of experience with the top upscale hotels
segment in the world.
Place:
Place will be unimportant to this agency because the training is virtual.
The company will have an office located in the business district of Buenos
Aires with 3 terminals and office supplies. The location where the company is
based (USA) is the key point for this project because the country is among
the best for customer service. Having training with an American corporation
and/or the willingness to move to the USA to study and work is extremely
important for Argentineans as it will open more opportunities for them to
obtain better jobs in Argentina.
Price:
In Argentina there is still a segment that pays in American Dollars. The
final price depends on the number of sessions/services/type of project
requested by the customers. The agency is expecting to close business with
big hotels and/or construction and investment companies working on new
hotel openings. In addition, there are no substitutes for this product and the
agency will be able to charge a high price. Furthermore, this agency will be
Golan 42
able to give to their customers the knowledge expected saving
transportation costs.
Promotion:
The company wants to be recognized in their customers’ minds as the
training agency that offers the most updated and sophisticated customer
service training coming from the USA using the best technology. The agency
will use the following channels of distribution in order to create that
positioning: 1) Launch the agency through a PR agency inviting hospitality
industry professionals and journalists, 2) Print advertising (hospitality
industry magazines/newspapers) and direct mail and, 3) Direct contact with
me.
Michael Porter’s Five Forces Analysis:
This model identifies and analyzes five competitive forces that impacts
every industry, and helps to establish an industry’s strengths and
weaknesses. The five forces are Suppliers, Substitutes, Threat of New
Entrants, Competition and Government and Regulations.
1. Suppliers:
The principal supplier for the implementation of the training agency is
WebEx. WebEx is the most technologically updated, convenient, effective

Golan 43
and cheap alternative in order to deliver high quality virtual training
including teleconferencing and videoconferencing. There are other suppliers
with whom the agency can establish relationships in the USA and Buenos
Aires to deliver teleconferencing and videoconferencing but the prices are
very high. There are videoconferencing studios in which one can make an
appointment and reserve a room such as Regis and Precision
Videoconferencing Solutions. The agency will need to offer elearning
courses for those customers unable to pay the teleconferencing and
videoconferencing prices.
2. Substitutes:
There is not yet a substitute product in the Argentinean market for this
type of virtual training offering teleconferencing and videoconferencing.
There is not a product at all that offers these technological features. As we
mentioned before, the location of the consulting agency and the
management experience in the industry make the difference in relation to
the competition. The idea of “work from home” and “get training from home”
is not engrained in the Argentinean culture yet. As a result WebEx is not a
popular tool used by Argentinean companies. Substitutes will need to copy
the infrastructure of this project in order to succeed and get the knowledge
and experience of the author as well.
Golan 44
3. Threat of New Entrants:
The author considers that once the Argentinean culture understands
the advantages of working and getting training from home, there will be
some type of small competition in the market. Probably the competition will
come from the USA because of the necessary technology. Argentineans like
to socialize when they go to work and/or prefer training in a conference
room. This is one of the reasons why the author cannot see Argentinean
companies working on a software such as WebEx. In case of a new entrant,
the Customer Service Training Agency, based in the United States, will have
all the necessary tools to compete and make her product different. The
author will be the first entering the market. As a result, the author will win
an important portion of the market share.
4. Competition:
As I mentioned above, SQT (Service Quality Training) is the only
consulting agency for the hospitality industry in Buenos Aires/ Argentina. It
was established in 1997. SQT does not specialize only in training, the
company offers other services such as recruiting, HR consulting, Marketing
and Sales Consulting and Business Consulting. SQT is currently integrated by
a professional team with broad experience in the different disciplines such as
Psychology, Psychopedagogy, Human Resources, and Hospitality and
Golan 45
Tourism. The General Manager named Claudia Brea has 12 years experience
in the hospitality industry.
The company offers onsite training and hospitality and management
distance learning classes through the web. The onsite training is very
interactive and uses examples, case studies, exercises and videos in order to
identify daily situations in hospitality jobs.
The company has a core training integrated by different modules:
1) For employees and supervisors: Guest Quality Service/Telephone
Techniques/Complaints Handling/Internal Customer and Sales
Skills.
2) For supervisors: Leading Teams Towards Quality/ Situational
Leadership/Train the Trainer/
Teamwork/Communication/Performance Appraisal/Negotiation.
3) For Marketing and Sales, Reservations, Public Relations, Front
Office and Food and Beverages Managers: Selling Techniques,
Marketing in the Hospitality Industry, Revenue Management.
On the other hand, the online classes are very dynamic and they also use
case studies and exercises. They allow every student to organize
himself/herself according to their needs, expectations and objectives. The
class is available online 24 hours a day and the student has a special ID
and password in order to access anytime. A tutor does the followup with the
purpose of checking the progress achieved by each student and
Golan 46
communicates with them via email and chats. At the end of the course the
student has an online final test that could be either a case study or and
exercise.
SQT offers a variety of modules directed to employees and supervisors
in relation with the training agency of this project. The training agency will
offer basic virtual training in the beginning (5 modules) using
teleconferencing and videoconferencing and according to the results
obtained during the first year it will increase the number of modules. The
biggest difference with SQT is the location of the customer agency (USA)
and the type of virtual training offered. As I mentioned before, the location
in the United States will allow students to take advantages of the most
updated techniques in the hospitality industry and interact with hospitality
industry professionals working in the USA. In addition, the class will be in
English and Spanish. The second difference is based on the type of virtual
training. Videoconfe rencing will allow students to conduct a class during
real time and with a tutor in their screen. Videoconferencing will create a
classroom atmosphere and a constant interaction with the tutor and other
students.
5. Government & Regulations:
There are no regulations that prohibit business between the USA and
Argentina in relation to the hospitality industry.
Golan 47
Operations
The agency will have a high performance management structure in
order to succeed and make the difference. This structure will be represented
by one Director, one Team Leader and one Administrative Assistant. The
agency will install a training center in Buenos Aires, Argentina.
Director:
The Director must have acquired hospitality experience in the USA.
The individual must be a native Argentinean professional able to understand
both cultures, recognize different needs and identify the weaknesses of
Argentinean customer service. He/she must have hospitality degrees and a
Master’s Degree in Management. This person will train senior hospitality
employees in Argentina with the purpose of transferring his/her knowledge
and making them real Team Leaders of the customer service agency. Also,
the Director will be teaching the English modules from the USA during the
first two years. He/she will travel often at the beginning of every new
contract to meet and establish a relationship with the client and launch the
key points of the program. He/she will offer a free demonstration of a
training session. In addition, the agency will sign contracts for 2 months
minimum (16 sessions). The Director is the only one who will close a
contract with customers.
Golan 48
Team Leader:
The Team Leader must have acquired a hospitality degree, be fluent in
English, have completed a six months internship in an American Hotel chain
as a prerequisite and have more than 5 years in the hospitality industry.
The Team Leader will be teaching the Spanish modules during the first two
years. Also, he/she will represent the Director in all Hospitality events in
Buenos Aires when the Director is not able to attend. He/she will be based in
Argentina.
Administrative Assistant:
The Adm. Assistant must have acquired experience in ecommerce
payments and payments in general. He/she will be responsible for all
payments, maintenance of the office, office supplies, and the agenda for
trainers. He/she will be based in Argentina.
Sales and Marketing:
Baraccini and Associates is the PR company that will be in charge of
sales and marketing. The agency will outsource this area at least for the
next 2 years.
Golan 49
Salaries:
The owner, who will be the Director of the company, will not have a
salary until the company produces sufficient revenues. The Team Leader will
have a salary of US$9,000 ($27,000 Argentinean Pesos) and the Adm.
Assist. will be paid hourly (US$4.00 = $12.00 Argentinean Pesos). The PR
agency will be paid hourly (US$12.00 = $ 36.00 Argentinean Pesos).
Organizational Chart
Director
Sales and Marketing
Team Leader
Adm. Assistant
Risks
The customer service agency will face the following possible risks:
1) The competition (SQT) could copy the technology implementing
teleconferencing and videoconferencing.
2) The competition could hire an employee to work from the USA.
3) The currency devaluation situation could change.
Golan 50
4) Technical problems with WebEx.
Mitigation
1) The technology (Webex) is from the USA. Equivalent technology is
very expensive in the Argentinean market. Also, the USA location constantly
promotes innovation technology.
2) The new company has a management team with international
experience based in the USA.
3) The agency will hire 1 Team Leader (salary position) and 1 Adm.
Assistant (hourly position) during the first year instead of 2 Team Leaders.
4) WebEx will be used before the launch of the organization by the
Director, Team Leader and Adm. Assistant in order to test the technology
and the help desk.
Assumptions
1) Target clientele: Independent hotels and hotels under construction.
2) Currency devaluation for the next 3 years.
3) USA customer service is recognized by Argentineans as one of the
best in the world.
4) It is hard to find an Argentinean that has worked both in the USA
and ARG for the hospitality industry for more than 5 years.
Golan 51
RESULTS:
See Appendix A.
DISCUSSION:
I will explain the key components of the Cash Flow:
1) The initial investment by the owner for the company is USD 40,000.
2) The company will pay credit card service charges of 2% monthly
because registration is online.
3) Professional services include lawyers, a CPA, a software designer
and a website designer.
4) The rent refers to the training center located in Buenos Aires.
5) Salaries are for the Team Leader (USD9000/monthly), the Adm.
Assistant (USD4,00/hour) and the PR agency (USD12,00/hour).
6) WebEx is the technology that offers teleconferencing and
videoconferencing. $3000 monthly includes 2880 minutes (6 sessions per
week).
7) Capital expenditure refers to 3 PC’s with monitors and speakers,
4 telephones and other office equipment.
8) Loan principal + interest: The USD 40,000 plus 10% interest will
be reimbursed within 24 months.
Golan 52
In summary, the net profit for the first year will be USD 72,386. It is a
considerable amount of money for a business which made an initial
investment of USD 40,000. As mentioned above, the initial investment will
be reimbursed in 24 months with a 10% interest.
CONCLUSION:
The Customer Service Training Agency will succeed in Argentina
because a large number of Argentineans do not know and understand the
value of customer service definition. Some hotels must understand that 1
unhappy customer is likely to announce his or her unhappiness to between
10 and 20 other potential customers. Independent hotels and hotels under
construction will need to hire a Training Agency in order to succeed.
There is only one consulting and training agency in Argentina, named
SQT (Service Quality Training), who will be considered the competition. As I
mentioned before, the agency is located in Argentina and the Training
Agency for this project will be located in the USA. In this particular case,
location is critical. It is a driving force for the existence and success of the
business. The training agency will be able to deliver the new trends of the
hospitality industry constantly using the best technology. In addition,
teleconferencing and videoconferencing will allow real interaction between
trainers and customers.
Golan 53
As previously mentioned, the USA is ranked among the best countries
in the world for customer service. This fact is recognized by well educated
Argentineans.
In the long run, I would like this Customer Service Training Agency to
be considered one of the best in South America. Eventually, I would like to
expand to countries such as Chile, Uruguay and Brazil as well. Quality of
service and the perception of value are the key points which will lead to the
ultimate success of this Customer Service Training Agency.
APENDIX A (See next page)
PROJECTED CASH FLOW STATEMENT
Year 1 : Detail by Month
JAN FEB MAR APR MAY JUIN JULY AUG SEPT OCT NOV DEC
BEGINNING CASH $0 $22,231 $14,827 $10,083 $12,044 $14,255 $10,816 $6,497 $4,168 $9,360 $10,046 $7,947
Add:
Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Collection on
$0 $3,000 $5,000 $12,000 $12,000 $6,000 $6,000 $7,000 $15,000 $10,000 $7,000 $5,000
receivables
Loan/other cash
$40,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
injection
TOTAL CASH
$40,000 $25,231 $19,827 $22,083 $24,044 $20,255 $16,816 $13,497 $19,168 $19,360 $17,046 $12,947
AVAILABLE
Deduct:
Advertising $1,800 $1,500 $1,500 $1,200 $1,200 $1,000 $1,000 $700 $700 $700 $700 $700
Credit card service
$0 $60 $100 $240 $240 $120 $120 $140 $300 $200 $140 $100
charge
Dues and
$250 $0 $0 $0 $0 $0 $250 $0 $0 $0 $0 $0
subscription
Insurance $150 $0 $0 $0 $0 $0 $150 $0 $0 $0 $0 $0
Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Maintenance and
$0 $0 $0 $0 $0 $0 $120 $45 $0 $0 $0 $120
repairs
Postage and
$120 $120 $120 $75 $75 $45 $45 $60 $60 $60 $45 $45
supplies
Professional
$2,500 $500 $0 $250 $0 $0 $250 $0 $250 $0 $200 $250
services
Rent $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Salaries: Employees $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Taxes $85 $210 $210 $500 $500 $500 $630 $630 $714 $500 $210 $210
Telephone $150 $150 $150 $110 $110 $110 $90 $90 $90 $90 $90 $90
Travel/entertainment $1,200 $750 $550 $750 $750 $750 $750 $750 $750 $850 $900 $900
Utilities $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Other operating
$75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75
expenses
WebEx $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Capital expenditures $4,800 $400 $400 $200 $200 $200 $200 $200 $200 $200 $100 $100
Loan principal paym
$1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834 $1,834
& interest
Owner's draw $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchases
$150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
(merchandise)
TOTAL CASH PAID
$17,769 $10,404 $9,744 $10,039 $9,789 $9,439 $10,319 $9,329 $9,778 $9,314 $9,099 $9,229
OUT
NET CASH
$22,231 $14,827 $10,083 $12,044 $14,255 $10,816 $6,497 $4,168 $9,390 $10,046 $7,947 $3,718
AVAILABLE
PROJECTED INCOME STATEMENT
Expected Monthly Sales $0 $3,000 $5,000 $12,000 $12,000 $6,000 $6,000 $7,000 $15,000 $10,000 $7,000 $5,000
Cost of Goods Sold $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Profit $0 $3,000 $5,000 $12,000 $12,000 $6,000 $6,000 $7,000 $15,000 $10,000 $7,000 $5,000
Depreciation $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
EBIT ($60) $2,940 $4,940 $11,940 $11,940 $5,940 $5,940 $6,940 $14,940 $9,940 $6,940 $4,940
Insurance $150 $0 $0 $0 $0 $0 $150 $0 $0 $0 $0 $0
Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Salaries $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
EBT ($1,240) $1,910 $3,910 $10,910 $10,910 $4,910 $4,760 $5,910 $13,910 $8,910 $5,910 $3,910
Taxes $85 $210 $210 $500 $500 $500 $630 $630 $714 $500 $210 $210
Other Oper. Expenses $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75
NET PROFIT ($1,400) $1,625 $3,625 $10,335 $10,335 $4,335 $4,055 $5,205 $13,121 $8,335 $5,625 $3,625
MAXIMUM SCENARIO
Expected Monthly Sales $2,000 $4,500 $5,500 $14,000 $14,000 $7,000 $7,000 $8,000 $17,000 $12,000 $8,000 $7,000
Gross Profit $2,000 $4,500 $5,500 $14,000 $14,000 $7,000 $7,000 $8,000 $17,000 $12,000 $8,000 $7,000
Depreciation $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
EBIT $1,940 $4,440 $5,440 $13,940 $13,940 $6,940 $6,940 $7,940 $16,940 $11,940 $7,940 $6,940
Insurance $150 $0 $0 $0 $0 $0 $150 $0 $0 $0 $0 $0
Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Salaries $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
EBT $760 $3,410 $4,410 $12,910 $12,910 $5,910 $5,760 $6,910 $15,910 $10,910 $6,910 $5,910
Taxes $85 $210 $210 $500 $500 $500 $630 $630 $714 $500 $210 $210
NET PROFIT $600 $3,125 $4,125 $12,335 $12,335 $5,335 $95 $6,205 $15,121 $10,335 $6,625 $5,625
MOST LIKELY
Gross Profit $0 $2,000 $5,000 $12,000 $12,000 $6,000 $6,000 $7,000 $15,000 $10,000 $7,000 $5,000
Depreciation $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
EBIT ($60) $1,940 $4,940 $11,940 $11,940 $5,940 $5,940 $6,940 $14,940 $9,940 $6,940 $4,940
Insurance $150 $0 $0 $0 $0 $0 $150 $0 $0 $0 $0 $0
Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Salaries $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
EBT ($1,240) $910 $3,910 $10,910 $10,910 $4,910 $4,760 $5,910 $13,910 $8,910 $5,910 $3,910
Taxes $85 $210 $210 $500 $500 $500 $630 $630 $714 $500 $210 $210
NET PROFIT ($1,400) $1,625 $3,625 $10,335 $10,335 $4,335 $4,055 $5,205 $13,121 $8,335 $5,625 $3,625
Golan 56
MINIMUN SCENARIO
Gross Profit $0 $1,500 $3,500 $9,000 $9,000 $4,500 $4,500 $5,500 $12,000 $8,000 $5,500 $4,000
EBIT ($60) $540 $3,440 $8,940 $8,940 $4,440 $4,440 $5,440 $11,940 $7,940 $5,440 $3,940
Insurance $150 $0 $0 $0 $0 $0 $150 $0 $0 $0 $0 $0
Interest $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
Salaries $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
EBT ($1,240) ($490) $2,410 $7,910 $7,910 $3,410 $3,260 $4,410 $10,910 $6,910 $4,410 $2,910
Taxes $85 $210 $210 $500 $500 $500 $630 $630 $714 $500 $210 $210
NET PROFIT ($1,400) $125 $2,125 $7,335 $7,335 $2,835 $2,555 $3,705 $10,121 $6,335 $4,125 $2,625
Golan 57
Reference List
Brea, Claudia. Service Quality Training (SQT). Soluciones para Empresas. Capacitacion en
Hoteleria. http://www.sqt.com.ar (accessed June 25, 2005)
Brown, Stanley. What Customers Value Most. How to Achieve. Business Transformation by
Focusing on Processes that Touch your Customers. Toronto: John Wiley & Sons, 1995.
Deloitte & Touche. Don’t Cry For Me Argentina – Buenos Aires Hoteliers At Last Start To See
Some Signs Of Improvement.http://www.hospitalitynet.org (accessed September 26,
2005)
Disney Institute. Be Our Guest: Perfecting the Art of Customer Service.
New York: Disney Editions, 2001.
Eberts, Ray, and Cindelyn Eberts. The Myths of Japanese Quality. New Jersey: Prentice Hall,
Inc, 1995.
Grupo Posadas. Grupo Posadas Selects LRA Worldwide to Conduct Customer Satisfaction and
Loyalty Research. http://www.travelindustrywire.com/news.print.Php?
sid=14910&POSTNUKESID=1e140… (accessed June 26, 2005)
Gunn, Ronald. Customer Service in The PostCare Bear Era: A Whimsical Epitaph with Clues for a
Better Tomorrow. http://strategicfutures.com/articles/custserv/custsvc.htm (accessed
June 27, 2005)
Kroll, Cristina. Full House: Argentina Hotel Owners Find That Cheaper Currency Brings in Business
Convention Travelers.
http://www.findarticles.com/p/articles/mi_mOBEK/is_4_12/ai_n6013613/print, (accessed
July 1, 2005)
Moran Consulting, Inc. 2005.Customer Service Training. Service Essentials for Telephone.
http://www.customerservicetraining.net/index.html (accessed June 25, 2005)
Phone Pro.2005.Training Courses. Telephone Skills Training Programs.
http://www.phonepro.com/training_tservices.html (accessed June 27, 2005)
Phone Pro. 2001. The Critical Importance of Voice Tone.
http://www.phonepro.org/CriticalImportanceofVoiceTone.html (accessed June 27, 2005)
Phone Pro.2001.Sometimes The Simplest Things Can Mean The Most.
http://www.phonepro.org/ImpressiveFirstImpressions.html (accessed June 27, 2005)
Spector, Robert. Lessons from the Nordstrom Way. How Companies are Emulating the #1 Customer Service
Company. New York: John Wiley & Sons, Inc., 2001.
Golan 58
Strategic Futures Consulting Group, Inc. 2005.Customer Service Training. Customer Service
Training Programs. http://strategicfutures.com/articles/custserv/custsvc.htm (accessed
June 27, 2005)
Sterling Consulting Group, Inc. 2004. Training and Consulting. The Service Advantage: A Customer
Service Training Program. http://www.scgtraining.com/training/index.html (accessed June
25, 2005)
TeleTraining Institute. The Teleconference Primer. A Guide to teleconferencing. The Technology
for Electronic Communications. http://www.teletrain.com/primer/I.html (accessed July 4,
2005)
Verret, Carol. Creating a Culture of Customer Service. http://www.hotelonline.com/Trends/Carol
Verret/Creating Culture_Sept2000.html (accessed June 17, 2005)
WebEx. Training. http:// www.webex.com (accessed September 26, 2005)
Webopedia. What is teleconference? A Word Definition from the Webopedia Computer
Dictionnary. http:// www.webopedia.com/TERM/T/teleconference.htm (accessed July 4,
2005)
William F. Orillio. Defining Customer Service: The Customer’s Perception is our Reality.
http://www.breakingtravelnews.com/article/20040910134537796 (accessed June 17,
2005)

Hotel

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Hotel

Uploaded by

Copyright:

Available Formats

Capstone Project

Nowadays, customer service in Argentina lags behind the United

trained in the USA. I will develop a business plan for a Hospitality Industry

customer service training sessions with some business consulting

virtual using the internet, teleconferencing and videoconferencing

This research will establish the creation of a Denver­based Customer

from the expertise and guidance of knowledgeable and experienced

using the internet, teleconferencing and videoconferencing. The business

plan will include the company’s mission and vision statements, an

Argentinean market and marketing analysis and a business operations

College of Business, University of Denver. Furthermore, I have a Tourism

and Hotel Administration degree, a General Business degree and I am

class lodging, dining and shopping atmosphere. The Argentinean customer

Unfortunately, there are no articles to demonstrate that the

Argentinean customer service needs help. However, I had interviews with

hospitality professionals working in Buenos Aires, Argentina. For example,

employees within the hospitality industry to speak foreign languages

Resort Broomfield, Colorado, echoed Ms. Brea’s comments stating that

problem was that the Ranch did not have enough employees to pursue the

the Argentinean hospitality industry. International hotel chains regularly

After considering these issues, I have decided to create a business

Currently, there is one consulting agency offering recruiting and

internet, teleconferencing and videoconferencing, 4) the agency will have a

Argentina. The company offers customer service programs and on­line

(Phone Pro 2005, Telephone Skills Training Programs). Another American

and offers customer service programs and training in­house (Moran

Consulting 2005, Service Essentials for Telephone). Carol Verret Consulting

and Training based in Denver/Colorado provides coaching, seminars and

Strategic Futures. This company offers training, consultation and speaking

engagement services. The company has a customer service training

booklets (Strategic Futures Consulting Group 2005, Customer Service

The Customer Service Training Agency will offer 5 modules named 1)

industry professionals and journalists, 2) Print advertising (hospitality

WebEx. WebEx is the most technologically updated, convenient, effective

including teleconferencing and videoconferencing. There are other suppliers

appointment and reserve a room such as Regis and Precision

Videoconferencing Solutions. The agency will need to offer e­learning

type of virtual training offering teleconferencing and videoconferencing.

is not engrained in the Argentinean culture yet. As a result WebEx is not a

The author considers that once the Argentinean culture understands

The Customer Service Training Agency will succeed in Argentina

hospitality industry constantly using the best technology. In addition,

teleconferencing and videoconferencing will allow real interaction between

You might also like

This research will establish the creation of a Denverbased Customer

Argentina. The company offers customer service programs and online

and offers customer service programs and training inhouse (Moran

Videoconferencing Solutions. The agency will need to offer elearning