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Mystic Monk Coffee Essay

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The Vision The future direction Father Daniel Mary has established for the Carmelite Monks of Wyoming is to expand function by procurring a 500 acre property that will become the new Mount Carmel. This property would be utilized to create a monestary, equipped to house 30 monks, a Gothic church, a covent for Carmelite nuns, a retreat for lay visitors and a hermitage. Father Daniel’s vision is to expand the monastery by purchasing the Irma Lake ranch for the list price of $8. 9 million.

From his calculations you can determine that he has $250,000 (donated), and is forecasted to earn nearly $75,000 from Mystic Monk Coffee (MMC). There is also an unforseeable amount of donations that will be incomming from the group of Cody business owners who have pledged to support the cause. The mission of the Carmelite Monks is to procur the Irma Lake ranch in order to expand their number of monks from 13 to 30 as well as have enough space for the above mentioned visitors and hermitage.

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Father Daniel’s plan of action is to use his 11% net profit margin (totalling $6,215 monthly, or $74,580 yearly), along with community donation to secure the property. Objectives and Performance Father Daniel Mary has not set the definite objectives or performance goals neccessary for achieveing his vision. There is a large of financial data missing in this case regarding his current financial obligations for the running of his current monastery, how much he will need from donations to reach his goals and what his projected future costs might be in running a larger monastery.

There seems to be a lack of focus or business accumen needed to obtain the results he is looking for. The profits are also not set out clearly as per which stream of revenue is providing how much ( ie. gift shop is producing X amount of profit, coffee sales X amount, revenue from samples X ). Known financials: – $39,580 ($74,580- $35K for the new roaster) from profit – $250,000 donation = $8. 9M (cost of Irma Lake ranch) – $289,580 ( total amount of liquid assets) = $8,610,420 or $717,535 monthly for 12 months

The monestary would have to raise this additional amount through donation in order to be able to afford the purchase ranch. Even knowing there will be future profits by increasing coffee production from 540 to 780lbs per day we still don’t know the actual amount of profit from coffee alone, therefore it isn’t definitive enough to know the complete standing of the business. Strategy Father Daniel has adopted the strategy of appealing to the Catholic population to realize his vision.

By asking them to “use their Catholic coffee dollar for Christ and his Catholic church” on the MMC website he invokes an emotional response to his mission. This gives the Catholic coffee drinkers a cause and the coffee then has meaning to them. This is a competitive advantage for MMC. Other stategic methods that MMC are injecting include increasing the production of coffee. Coffee sales are the means of support from the outside world to finance the purchase of the land.

Demand for MMC did not exceed the capacity of the current roaster but the monastery has planned to invest $35,000 in a larger roaster when demand approached its capacity. Buying a new roaster would allow the production of coffee to increase from 540 pounds per day to 780 pounds —6 hours of work x 130 pounds per hour = 780. Improved marketing of the product. MMC plans to emphasize marketing through website sales rather than word of mouth. Better distribution of the product is demonstrated through the idea to expand MMC’s business model so as to include wholesale coffee to local coffee shops and churches.

Business Model Mystic Monk Coffee strategy is a money maker. Realizing a net profit of 11% as well as the secure customer base with 150 million coffee drinkers in the US, the business shows the ability to generate income. The business model of MMC is a web based business which also utilizes word of mouth. They will increase the production of the coffee by purchasing a new roaster and add additional streams of revenue with the wholesaling of their products to churches and coffeeshops.

Mystic Monk Coffee delivers customer value by offering a high grade product using quality free trade/organic Arabica beans,several differnt options of flavor or roast, shipping directly to the costomer’s door and a frequent customer club offering free shipping for puchases of 3 or more bags. MMC shows the ability to increase it’s value by increasing the production of it’s coffees, and all the resources such as quality coffee that have a specific meaning to the Catholic consumers along with the workers and equipment needed to create and deliver value to it’s customers.

Recommendations My analysis shows that the largest issue at hand is the lack of financial information such as; the cost of running current monastery and the projected cost for running a larger monastery. Also the profit outlines should be clearer to show a breakdown of profit to show how much revenue each stream is producing. The recommendation then would dictate that Father Daniel overhaul his financial data, and have an operation plan that includes an indepth financial layout and adds structure to the strategy plan.

From the analysis, it does not seem like Father Daniel has much experience in business and needs a training or a management/marketing consultant. Successful strategy execution relies on solid planning, competitive capabilities, and effective internal organization. The second recommendation would be to employ both the new and old roaster to increase production from 780 to 1320. This would increase productivity which would create more customer value and profitability.