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Mystic Monk Coffee Case Study

Question 1

Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming. Father Daniel’s wishes to eventually have thirty monks within the age bracket of nineteen to thirty years to live out their lives in the monastery.

Father Daniel Mary’s vision for the monastery is to transform the meager brotherhood of thirteen monks residing in a small home utilized as makeshift rectory into a five hundred-acre monastery that would have a Gothic church, a retreat center for lay visitors, accommodations for thirty monks, a convent for Carmelite nuns and a hermitage.

When it comes to the Mystic Monk Coffee, Father Daniel Mary’s vision is to see it increasing its operations substantially so as to improve its revenue which is crucial to funding the realizing the vision of the New Mount Carmel.

The mission of the Carmelite Monks of Wyoming is to engage in prayer, worship and silent meditation in the cloistered monastic environment.

Question 2-Mystic Monk Coffee Case Study

Father Daniel Mary has indeed set definite objectives for achieving his vision. Nonetheless, his performance targets for attaining the vision are not quite vivid or definite. His objective for the monastery is to increase the capacity of the Carmelite Monks of Wyoming from thirteen monks to thirty monks and acquire a 500-acre piece of land that is capable of accommodating the monks and having other essential amenities crucial to the monastery such as a Gothic church, a retreat center for lay visitors, a convent for Carmelite nuns and a hermitage.

Question 3

Father Prior’s strategy for achieving his vision was to rely on the Mystic Monk Coffee operations to provide the funds required to purchase the ranch. As a strategy, Mystic Monk Coffee stands to produce a significant competitive advantage in the coffee industry through its supply of coffee to consumers, businesses and institutions.

First, Mystic Monk Coffee supplies specialty coffee made from higher quality fair trade Arabica beans and fair trade organic Arabica beans which consumers prefer compared to the lower quality Arabica beans or the less flavorful and bitter Robusta coffee beans. Second, eighty-nine percent of coffee drinkers in the United States brew their own coffee at home using the packed coffee from different companies such as the one supplied by Mystic Monk Coffee. Third, Mystic Monk Coffee can leverage the large segment of the United States Catholic population who drink coffee and wish to espouse the mission of the monastery.

Question 4

Mystic Monk Coffee’s strategy is a definite money maker. This can be attributed to its substantial earnings. In its first year of operation, Mystic Monk Coffee earned approximately $75,000. Since the company has improved its popularity and operations, Mystic Monk Coffee is poised to increase its earnings with the purchase and use of a larger roaster. Moreover, Mystic Monk Coffee has a robust business model.

Mystic Monk Coffee’s customer value proposition and profit formula are not only suitable, but also ideal and evince a lot of promise. For instance, by providing offers for the purchase of its coffee such as discounts, free delivery and coffee club partnerships.

Question 5-Mystic Monk Coffee Case Study

The strategy involving Mystic Monk Coffee qualifies as a winning strategy. This is because Mystic Monk Coffee already surpassed the breakeven stage in its first year of operation to register a net profit margin of 11 percent of revenues at the conclusion of the 2008 fiscal year. Such remarkable financial performance amidst challenges such as limited time dedicated to production and business operations by the monks, is a harbinger of increased earnings in the foreseeable future. The aspect of Mystic Monk Coffee as a going concern is reinforced by its widening customer base to include secular customers and brokers, partnerships.

Question 6

Crafting and executing strategy for the Mystic Monk Coffee’s operations requires close consideration of the long-term status and nature of the business as a going concern. The purchase of the large roaster is a good business move since it will increase the production capacity of Mystic Monk Coffee to meet the increase in demand in the foreseeable future and increase earnings required to fund the New Mount Carmel project. Nonetheless, Father Daniel Mary should also focus on providing solutions to the challenges that Mystic Monk Coffee faces such as the limited time of work by the monks.

Question 7

SWAT Analysis

Strengths

  • Supply of specialty coffee made from higher quality fair trade Arabica beans and fair trade organic Arabica beans which consumers prefer compared to the lower quality Arabica beans or the less flavorful and bitter Robusta coffee beans.
  • Large customer base involving both the U.S. Catholic population of coffee drinkers and secular customers.
  • Low marketing costs due to free word of mouth promotion among loyal consumers in Catholic parishes.

Weaknesses

  • Limited production due to the low capacity of the company’s roaster of 540 pounds per day.
  • Limited labor and work time due to the mandatory prayer, worship and silent meditation routines undertaken by the monks.
  • Cloistered monastery environment that acts a barrier to external operations.

Opportunities-Mystic Monk Coffee Case Study

  • The purchase of a large roaster that is poised to increase the production capacity of Mystic Monk Coffee and subsequently increase its revenue and earnings.
  • Partnership with more secular websites and affiliate sites facilitated by the Mystic Monk Coffee Affiliate Program to promote its products and attract novel customers.
  • Expansion of Mystic Monk Coffee’s business model to include wholesale sales to local coffee shops and churches to enjoy the benefits of B2C business operations.

Threats

  • Limited funds to improve Mystic Monk Coffee’s business operations and infrastructure since a significant amount of the business’ earnings will be directed to purchasing Irma Lake Ranch.
  • Restricted growth of Mystic Monk Coffee due to rule and regulations that come with the cloistered monastic environment and its partnership or relations with external and secular businesses.