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Mystic Monk Coffee Case 1 Study

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1. Has Father Prior 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?

a. Father Daniel Mary has a direction in which he would like the Carmelite Monks of Wyoming to steer towards. He wants to create a new Mount Carmel in the Rocky Mountains. Father Prior wishes to increase his small brotherhood of 13 monks living in a small home used as a makeshift rectory to having 30 monks located on a 500-acre monastery. This would also accommodate a Gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, and a hermitage. His vision for the Mystic Monk Coffee is to be able to sell enough to purchase a nearby ranch that will fulfill his visions for the new Mount Carmel. The mission of the Carmelite Monks is the same as Father Priors; they would like to raise enough money to relocate to a more suitable location to carry out their life they’ve dedicated to worship.

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

a. Father Prior has set objectives to purchase a ranch by selling more coffee. They also have plans to purchase a new roaster to be able to produce more coffee. However, they have not set any goals or made any financial objectives as to how much coffee they need to produce to obtain the money for the ranch and also make their money back on the new roaster.

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

a. His strategy is promoting Mystic Monk Coffee by word of mouth, their website, and their Mystic Monk Affiliate Program. They also depend on the U.S. Catholic population to support their cause. The Catholic Church is the largest denomination in the United States making it an advantage to the monastery for a future customer base. They also produce their coffee with high-quality fair trade/organic Arabic beans and are cheaper than other known brands.

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 customer value proposition? Its profit formula? Its resources that enable it to create and deliver value to customers?

a. Yes, because they already have been making money off of the coffee and accessories. Their business model includes providing high-quality coffee at a low cost for a religious cause. Mystic Monks Coffee also advertises through their affiliate program. Customers have the choice of joining a “coffee club” that offers monthly delivery of six bags of their preselected coffee, this enables recurring revenue. Free shipping is also provided to orders with three or more bags. Mystic Monks are also wholesalers to churches and local coffee shops. I think their profit formula works well with all their value propositions. They have a target market of Catholics who get the word out and support the cause, either through donations or purchases, also through their affiliate program they are able expand their customer base.

5. Does the strategy qualify as a winning strategy? Why or why not?

a. Although parts of their strategy play into a winning strategy, there is need for improvement. The strategy mentioned in question three does match the industry and competitive conditions and with low costs can hold a competitive advantage and since they are in business as a nonprofit trying to achieve a goal of creating a new Mount Carmel, it separates them from their competition. Their weakness is the monk’s time being limited by devotion to prayer; they have a limited production in coffee making.

6. What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monastery’s coffee operations? Are changed needed in its long-term direction? Its objectives? Its strategy? Its approach to strategy execution? Explain.

a. I would advise Father Prior to purchase the new coffee roaster with the donated money, therefore it’s not a cost burden to them and they will be able to produce more coffee. Producing more coffee would mean that the time that being limited to prayer would need to be addressed. Father Prior could hire a part time person who would be able to help during prayer. Another option would be to advertise volunteer work to the young men who want to become a Carmelite; it would be a form of internship and they wouldn’t have to pay for a part time employee. Even if they don’t earn enough to reach their goal, they can always can always purchase something similar within their budget. The long-term strategy may change a little but once they do earn enough they will still need that revenue coming in to build and remodel, and to afford the upkeep of the ranch. The approach to strategy execution does need to be aimed at producing more coffee to reach their goal by practices as mention before like purchasing a new roaster and getting part time help during prayer. Once they have purchased the new roaster the new objective will be how many pounds needs to be produced per day and when that is accomplished and the land is purchased the objectives will change again for the new goals that will come with getting the monastery ready.

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