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Mystic Monk Coffee David L. Turnipseed University of South Alabama s Father Dani

ID: 385867 • Letter: M

Question


Mystic Monk Coffee David L. Turnipseed University of South Alabama s Father Daniel Mary, the prior of the Carmel- to what extent the monastery could rely on t ite Order of monks in Clark, Wyoming, walked Monk Coffee operations to fund the purh to chapel to preside over Mass, he noticed the ranch. If Mystic Monk Coffee was sun glistening across the four-inch snowfall from the previous evening. Snow in June was not unheard of in Wyoming, but the late snowfall and the bright glow of the vision a reality, what were the next steps in turi the coffee into land? the rising sun made him consider the opposingforces THE CARMELITE MONKS accompanying change and how he might best prepare his monastery to achieve his vision of creating a new OF WYOMING Mount Carmel in the Rocky Mountains. His vision of transforming the small brotherhood of 13 monks Carmelites are a religious order of the Cathol living in a small home used as makeshift rectory into Church that was formed by men who traveled to tre a 500-acre monastery that would include accommo- Holy Land as pilgrims and crusaders and had chosen dations for 30 monks, a Gothic church, a convent for to remain neas ierisalem to seek God. The men estab Carmelite nuns, a retreat center for lay visitors, and a lished their betrni age at Mount Carmel because of t hermitage presented a formidable chalenge. However, beauty, seclus.on, sed biblical importance as the sie as a former high school football player, boxer, bull where Elijah stood against King Ahab and the fibe rider, and man of great faith, Father Prior Daniel Mary prophets of Jezebel to prove Jehovah to be the one tre was unaccustomed to shrinking from a challenge.God. The Carmelites led a life of solitude, silence,and Father Prior had identified a nearby ranch for prayer at Mount Carmel before eventually returning sale that met the requirements of his vision perfectly, to Europe and becoming a recognized order of te but its current listing price of $8.9 million presented Catholic Church. The size of the Carmelite Order a a financial obstacle to creating a place of prayer, wor ied widely throughout the centuries with its peaka ship, and solitude in the Rockies. The Carmelites the 1600s and stood at approximately 2,200 friars had received a $250,000 donation that could be used ing on all inhabited continents at the beginning nearly $75,000 during the first year of its Mystic Monk coffee-roasting operations, but more money would be needed. The coffee roaster used to produce pack mit in Minnesota before moving to aged coffee sold to Catholic consumers at the Mystic to establish the new monastery. Te le Monk Coffee website was reaching its capacity, but a larger roaster could be purchased for $35,000. Also, to leave the monastery only by permissic local Cody, Wyoming, business owners had begun a bishop for medical needs or the deathot a foundation for those wishing to donate to the monks member. The Wyoming monastery's abbey cause. Father Prior Daniel Mary did not have a great deal of experience in business matters but considered Copyright 2011 by David L. Turnipseed. All nights The Wyoming Carmelite monastery was ohe by Father Daniel Mary who lived as a Clark, Wyoming Carmelites were a cloistered order and were

Explanation / Answer

Father Daniel Mary, a prior of the Carmelite Order of monks, has established a proposal to grow the Carmelite monks of Clark, Wyoming. Father Daniel Mary and his small brotherhood of thirteenth monks live in a small home which used for the makeshift rectory. According to the case study, his vision is set on reconstructing Mount Carmel in the U.S. Rocky Mountains and turning the brotherhood of thirteen monks into a 500-acre monastery that would include accommodation for thirty monks, a gothic church, a convent for Carmelite nuns, a retreat center for lay visitors, and a hermitage. Over the past years, Father Daniel Mary along with the other monks have been purchasing high-quality fair trade Arabica and fair trade/organic Arabica beans from Seattle and distribute under the name of Mystic Monk Coffee (MMC).

            The overall mission approach of the Mystic Monk Coffee is to increase its operation. To improve its services, they have to invest into a new larger roaster that could produce more coffee, expanding the quality of customer by connecting to more Catholic churches and corporate sponsors. Father Daniel Mary has set individual objectives for attaining the Mystic Monk Coffee vision. He has set a financial plan to achieve his goal of becoming an owner and relocating his monastery to a much bigger land like the Irma Lake Ranch for its current listed price of $8.9 million. The monks believe that the cash flow from the sale of the coffee should provide enough money to finance the cost of the 8.9 million.

            However, some major problems need to address. One of the problems is there are not enough laborers and bigger equipment with a much larger capacity to produce more coffee. The second issue is limited working hours; six hours is a short time span to generate enough sales for the coffee. Limited labor force, included work hours, and poor marketing strategies are major issues of the limitation. Father Daniel Mary needs to come up with a better strategic plan to increase the production to generate more sales of the coffee. If the monks could relocate to a new ranch, most of the problems could fix. Unfortunately, there are financial barriers of purchasing the ranch.

            Father Daniel Mary did establish a future direction for the Carmelite Monks of Wyoming. His vision for the monastery was to expand the amount of monks currently from thirteen to thirty. He wants to broaden the residence because they are not enough living space for thirty monks. To do so, he would like to purchase a ranch that list for sale at 8.9 million. Along with the expansion of the living area, Father Daniel Mary would like to build other beneficial buildings such as a Gothic church, a convent for Carmelite nuns and so forth. He also wanted to purchase this ranch to build a place of prayer and worship.

            His vision for the Mystic Monk Coffee (MMC) is to buy a new larger 130-pound-per-hour-roaster once they have a higher demand from their consumers. The cost of the roaster is expected to cost around $35,000. Once the monks can increase their demand, they can make more coffee on a larger scale. Once the sale is growing, then revenue will also increase. All the profit from the sales can go towards their goal of purchasing the new ranch. The major mission of the Carmelite Monks of Clarke, Wyoming is to live a peaceful life of working and worshipping. Overall, a monk’s primary focus in life is spirituality. When a monk is not in worship or contemplating God in silence, they are working. A monk’s life is devoted to God.

            Father Daniel Mary did set definite objectives and performance targets for achieving his vision. The first goal he set was to increase the production of the coffee. The sales of the coffee were a means of support from the outside world to finance the purchase of the new ranch. The demand for Mystic Monk Coffee exceeded the capacity of a roaster, so the monastery had planned to invest into a new larger roaster. If they invest into a new roaster, the production of the coffee will increase from 540 pounds per day to780 pounds per day. The second objective was a better distribution of the product. MMC was primarily sold online except a few phone sales, and the performance target wholesaled to local coffee shops and churches.

            Father Prior’s strategy for achieving his vision was to promote Mystic Monk Coffee and use the profit to buy a new ranch for the monastery. Some competitive advantages are as follows: Mystic Monk Coffee was produced using high-quality fair trade Arabica and fair trade organic-Arabica beans. Mystic Monk Coffee promoted through word of mouth, and this strategy went from their loyal customers in Catholic parishes across the United States. Mystic Monk Coffee is a coffee that has a distinctive meaning for Catholics who want to support monastery mission.

            Mystic Monk Coffee strategy is a money-maker business. There is no risk of loss. It has a net profit of eleven percent of revenues, which could be even higher since the firm has a quality product and ability to expand. Mystic Monk Coffee business model is to increase the production of its operation by buying a new roaster and including wholesalers to churches and local coffee shops. MMC is a very successful consumer value proposition; it produced by using superior quality, fair trade/organic Arabica beans and offers a variety of different flavors. Resources that enable it to create and deliver value to customers are as follows: non-profit with no taxes and roasting coffee in monastery creates and delivers value to customers.

            The strategy is qualified as a winning strategy. The plan set a direct goal for the business. The business has a quality product and the potential to expand their capacity to produce and distribute more coffee. They can increase the production if a new larger roaster is purchase. The brand can compete on the market because its retail prices are between the range compare to other brands. Overall it has had a sound financial performance.

            However, the business is only in the beginning stages of production. It will be several years until the company establishes an active group of consumers and increases their yearly profits substantially. The company still needs much time to grow and think of ways to cut their cost of production. Father Daniel Mary should work on developing a successful long-term business strategy for the Mystic Monk Coffee to increase their production, reduce their costs and expand their consumer. The primary focus of the Carmelite Order should be developing better business revenues instead of an emphasis on the size of the establishment. By generating a successful business, the Carmelite Order will have funds to purchase a new monastery. In the long run, a better way of introducing the product to more customers should be a top priority. For example, they should find more ways to advertise the product to reach a maximum of people through television or the radio.

            Father Daniel Mary could also consider finding others ways of earning the money to fund the land by asking for donations from other group members of the Catholic Church. Also, a different approach could be to cut back drastically on his vision for now and instead of buying such an expense land like Irma Lake Ranch. Father Daniel Mary should consider buying a much cheaper piece of land. There is no guarantee that Father Daniel Mary will be able to earn enough revenue to meet the require payments and the fees for his current vision. A more realistic idea for the monastery is to collect sufficient funds to purchase a larger residence that thirty monks could reside but on a much smaller scale and in a lower price range than $8.9 million.

Strengths

-Affordably priced

-Free labor

-Healthy organic Arabica beans

-Online shopping and shipping

-Variety of different coffee flavors available

-Markets favorably to Catholic people who take up much of the population

Weaknesses

-Organic coffee could be a trend

-Monk’s do not have business experience

-Limited capacity at current location

-Production is limit due to prayer and worship

-Weak revenues

-Cloistered environment

SWOT ANALYSIS

Opportunities

- Franchise

-Expand globally

-Increase marketing and advertisement

-Integrating new products

Threats

-Environmental conditions

-Established competition

-Religious belief

            Overall, Father Daniel Mary should continue his vision of expanding the area for the monks living accommodations and increasing the number of monks from thirteen to thirty. An increase in the number of monks would be beneficial to the business side of the monastery because it would increase labor hours. He should focus only on opening the Gothic church and hold back the addition of new buildings. Unfortunately, the monastery does not have enough resources to generate sales from the coffee to accrue $8.9 million. Perhaps, Father Daniel Mary could choose to use the monastery’s $250,000 donation to expand the current rectory to provide the additional living space for the current amount of monks and any new addition of monks joining the monastery. His vision would be beneficial in expanding the monastery, but based on the current amount of revenue earnings, there are not enough funds to pay for the Irma Lake Ranch.

Strengths

-Affordably priced

-Free labor

-Healthy organic Arabica beans

-Online shopping and shipping

-Variety of different coffee flavors available

-Markets favorably to Catholic people who take up much of the population