Mystic Monk Coffee Case.

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 established the future direction for Carmelite Monks. He determined clear sense of the

future, directions and inspiration for the goal setting.

The biggest vision of Father Daniel Mary included expanding the monastery by acquiring the Irma Lake

ranch for its current listed price of $8.9 million. This would enable to build a retreat center, a Gothic church, a

convert for Carmelite nuns, hermitage and transform the small brotherhood of 13 monks to 30.

Father Daniel Mary believed that Mystic Monk Coffee could fund the purchase of the new land. The vision

of the Mystic Monk Coffee was to make the vision a reality, by “turning the coffee into the land”.

The mission of the Carmelite Monks of Wyoming was to be able to earn money to buy the Irma Lake ranch

and to expand from 13 monks to 30, gothic church, retreat canter and convent.

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

Production of Mystic Monk coffee didn’t generate the kind of cash flows to pay for the Irma Lake ranch.

Father Daniel Mary has set definite objectives and performance targets for achieving his vision.

Objective 1: Increase the production of coffee. Coffee sales were a means of support from outside world to

finance the purchase of the land. Demand for Mystic Monk Coffee exceeded the capacity of a roaster and the

monastery had planned to invest in a larger roaster.

Performance target: Buying a new roaster that would allow the production of a coffee to increase from 540

pounds per day to 780 (6 hours of work X 130 pounds per hour = 780).

Objective 2: Better distribution of a product. Mystic Monk Coffee was primarily sold online with an

exception of a few phone sales.

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Performance target: Wholesales to local coffee shops and churches.

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

Father’s strategy for achieving his vision was to promote Mystic Monk Coffee among Catholic population.

One of the strategies they had was word of the mouth and this strategy went from their loyal customers in

Catholic parishes across the US. Mystic Monk is a coffee that has a unique meaning for Catholics who want to

support monastery mission. By buying Mystic Monk coffee Catholic population could support a cause at the

same time. It’s a great advantage Mystic Monk brand has and other brands don’t.

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?

Mystic Monk Coffee business is a money-maker. There is no risk of loss. There are 150 million consumers

that drink coffee in the US, so the business has a potential to generate profit. It has a net profit of 11 percent of

revenues, which could be even higher since the business has a quality product and ability to expend.

Business model is the way the company generate profit. MMC’s business model is to increase the

production of coffee by buying a new roaster and including wholesale sales to churches and local coffee shops.

Mystic Monk Coffee is a product with a successful consumer value proposition. It is produced by using

high-quality fair trade, organic Arabica beans and offers a variety of flavors. The MMC web site offered free

shipping for the purchases of 3 bags of coffee or more.

Profit formula is an ability of the company to create value for itself. The MMC had all the ability to increase

its value by increasing the production of coffee.

MMC has all the resources (equipment, people, and product) to deliver the value proposition to the

customers. As it was mentioned earlier, MMC used high quality Arabica beans to produce the coffee that has a

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unique meaning for Catholic population. If a new roaster is purchased and the work time of the monks is

increased by a couple of hours a week, it would help to increase the production.

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

The strategy is qualified as a winning strategy. The business has a quality product and a potential to expand

their capacity to produce and distribute more coffee. They are able to increase the production if a new larger

roaster is purchased. Mystic Monk Coffee retail prices are between the range compare to other brands, which

allows the brand to compete on the market. Once they start to produce more their profit will increases.

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