Case 1

Case 1: Mystic Monk Coffee

1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? Yes, Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming which is explained in his vision.

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What is his vision for the monastery? The vision of the monastery is to
• Build a retreat center for visitors
• Purchase 500-acre ranch
• Build a monastery with accommodations
• increase capacity from 13 monks to 30 monks
• Build a gothic church
• Build a convent for Carmelite nuns, and a hermitage
• Build a new Mount Carmel in the Rocky Mountains Acquiring a large parcel of land and making a new Mount Carmel.

What is his vision for Mystic Monk Coffee? Don’t believe there is a true Vision for Mystic Coffee, however, with exception to funding the Carmelite Monks expansion of the monastery. He will use the Mystic Coffee to increase revenue to expand the Monastery.
What is the mission of the Carmelite Monks of Wyoming? The mission of Carmelite Monks of Wyoming is
Prayer and Worship
Live out their lives in a monastery
Vows of obedience
Chastity and poverty
Sacrifices associated with living a cloistered religious life

2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? Yes, Father Daniel Mary has set definitive objectives such as to improve the production of coffee, and the performance target is to purchase a new roaster which will increase in sales production. The profits that he acquires will be used to fund the monastery, which the outcome focused on improving Mystic Monk Coffee’s financial performance.

3. What is Father Prior’s strategy for achieving his vision? Father Prior’s strategy for achieving his vision is to use Mystic Monk Coffee production profit and the donation of $250,000.00 to purchase the Irma Lake Ranch for a monastery.

What competitive advantage might Mystic Monk Coffee’s strategy produce? Mystic Coffee’s competitive advantage is to focus on Catholics worldwide and to produce more of the coffee to increase profit.

4. Is Mystic Monk Coffee’s strategy a money maker? Yes, Mystic Monk Coffee’s strategy is a money-maker; however, at this current rate of production and hours worked, limits their ability to produce more, due to the capacity of the Mystic Monk Coffee’s roaster limited production to 540 pounds per day; production was also limited by time devoted to prayer, silent meditation, and worship.

What is MMC’s business model? Mystic Monk Coffee’s business model is uncertain, Mystic Monks coffee’s business process is based on purchasing green coffee beans each week from a broker in Seattle, WD. Then will roast it at the monastery at the free time by the monks. Even though it has a convincing customer value proposition; it did not arrange out a clear strategy for how it will achieve the increased production required to raise the $8.9 million.

What is your assessment of Mystic Monk Coffee’s customer value proposition? My assessment of the customer value proposition is that they do have value because their product is produced by using high quality, fair trade, organic Arabica beans and offers a variety of flavors. It’s sales to wholesalers or coffee clubs.

It’s profit formula? Its profit formula is 11% of rev. The company’s cost of sales of 30 percent, broker fees of 3 percent, and shipping cost of 19 percent contribute to a cost of goods sold of 52 percent. They also not have labor cost.

5. Does the strategy qualify as a winning strategy? Why or why not? Yes, it is a winning strategy, because according to the three tests of a winning strategy. A strategy which qualifies as a winning strategy need to answer three questions.
• Does the strategy fit the company’s situation? Yes, its strategy fits the company’s situation currently because the market for specialty coffees had grown over the years. Mystic Monk Coffee focus on consumers in the United States, Father Daniel evaluate the market of coffee drinkers in the United State. The US would be a large market for Mystic Monk Coffee.
• Has the strategy yielded a sustainable competitive advantage? Yes, it has yielded a sustainable competitive advantage above average, because of its performance in comparison to other companies. Producing high-quality Arabica beans rather than low-quality Arabica beans. Many customers who purchased specialty coffees are ready to pay a higher price for organic products, or fair-trade coffee because of their health.
• Has the strategy produced good financial performance? Yes, it has had a good financial performance. Mystic Monk Coffee’s average monthly sales of $56,500 and its average profit margin of 11 percent of revenue. Shows that the strategy has produced a good financial performance. However, not enough profits to purchase the Irma Lake Ranch.

6. What recommendations would you make to Father Daniel Mary in crafting and executing strategy for the monastery’s coffee operations? My recommendations for Father Daniel Mary are to set short-term and long-term goals for Mystic Monk Coffee, increase in operating production by hiring external workers, explore investment opportunities, and advertise to other Catholic around the world.

Are changes needed in its long-term direction? Yes, Mystic Monk Coffee’s will benefit from changes. Every company needs a new direction. No business ever stays the same throughout its lifetime. As market conditions fluctuate, customer demands and technology changes, a company need to adapt to stay relevant and keep growing.

It’s objectives? Father Daniel Mary should focus on his marketing segment of a Mystic Monk Coffee, not only regulates the potential of his product and service, but it will allow Father Daniel Mary to understand more about future customers.

It’s strategy? For Father Daniel Mary to achieve his goals of building the new Mount Carmel, He will need to increase in production proficiencies, target more coffee shops with large Catholic populations to help boost their overall sales. Advertisement to increase brand awareness, such as social media like Facebook, Twitter or YouTube to advertise its products.

It’s approach to strategy execution? Base on my research, If Father Daniel Mary follows these few steps of strategy execution, Mystic Monk Coffee will increase in profitability margin, operation capability and brand awareness. Which will then allow Father Daniel Mary to expand the monastery, then he can acquire the Irma Lake ranch for its current listed price of $8.9 million.
• Visualize the strategy.
• Measure the strategy.
• Report progress.
• Make decisions.
• Identify strategy projects.
• Align strategy projects.