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Mystic Monk Cafe

Essay by   •  November 4, 2013  •  Case Study  •  1,305 Words (6 Pages)  •  1,351 Views

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1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming?

Father Daniel Mary defined a very clear plan for the future of the Carmelite Monks of Wyoming. His plan included transforming the brotherhood of 13 into a larger brotherhood of 30. The current accommodations were not suitable for this. To grow the brotherhood to this level a new monastery was necessary. The plan included the purchase of an $8.9 million dollar ranch that consisted of 496 acres, a main residence, several smaller building units, barns, and land. The property would include accommodations for all 30 monks, a Gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, as well as a hermitage. Father Daniel Mary envisioned that the profits from Mystic Monk Coffee would be used to supplement a $250,000 donation to purchase the property. The vision of the monastery was to grow the brotherhood from 13 monks to 30. Mystic Monk Coffee also had a vision. The vision of the coffee operations was to fund the New Mount Carmel. This would be done by appealing to Catholics to "use their Catholic coffee dollar for Christ and his Catholic church." Likewise the mission of the Carmelite Monks of Wyoming was to efficiently operate Mystic Monk Coffee to earn enough profit to purchase the ranch and expand the brotherhood and direction of the monastery.

2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision?

Father Daniel Mary has clearly thought out the future direction for the monastery, and in doing so has created definite objectives and performance targets for Mystic Monk Coffee to realize the vision. The first objective is to increase distribution of the coffee through online channels, as well as the newly expanded reach of wholesaling to churches and coffee shops. With increased distribution and demand, Father Daniel Mary had to define a second objective, which was to increase production of Mystic Monk Coffee. Coffee sales were profitable, but current production was limited to 540 pounds per day, and was further restricted by religious obligations. Demand is not quite at capacity yet. But Father Daniel Mary was planned for capacity to increase. Once capacity is reached, a plan has been made to purchase a new roaster, which can process coffee at a rate of 130 pounds per hour. This would increase production to 780 pounds per 6 hour work day. The price of this roaster is $35,000; but production would increase 69 %. Through increased demand and subsequent production, Mystic Monk Coffee profit will increase, and will provide more cash flow to fund the property for the new monastery.

3. What is Father Prior's strategy for achieving his vision? What competitive advantage might Mystic Coffee's strategy produce?

Father Prior's strategy for achieving his vision was to further promote Mystic Monk Coffee amongst Catholic Parishes and member of the church. Currently the coffee is mainly promoted via word of mouth. A new affiliate program was also created to help direct sales to the company's website. The companies' competitive advantage was the use of fair trade high quality Arabic beans which coincided with personal health or social concerns that may align with beliefs of the Catholic church. The target market of the Catholic Church was also a competitive advantage because members of the church will be more inclined to purchase Mystic Monk Coffee to help support the mission of creating the new monastery, versus some commercial brand solely looking to make a profit.

4. Is Mystic Monk Coffee's strategy a money-maker? What is MMC's business model? What is your assessment of Mystic Monk Coffee's

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