Mystic Monk Coffee

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  • Topic: Carmelites, Revenue, Our Lady of Mount Carmel
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  • Published : January 23, 2013
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Business Strategy
Case 1
Mystic Monk Coffee

Jordan Eliuk
Olds College
Submitted on: January 24, 2013

Introduction

Mystic Monk coffee company is a cloistered monastic environment where monks from the Carmelite monastery of Clark, Wyoming spend their daily manual labour hours roasting coffee (Thompson, 2012, pg. 420). The monks are a religious sect of the Catholic church and are fully dedicated to their religious and spiritual side, which requires most of their daily hours, be spent praying or contemplating in silence; this leaves little time to spend on coffee roasting productions, especially due to the small population of monks that are able to live at the Carmelite monastery. There were many restrictions that the Carmelite monks faced with their coffee productions such as having restricted roasting capacity, inadequate land and partial workers. Father Daniel Mary, the prior of the Carmelite order, had a vision of expanding the small monastery of 13 monks, by creating a new Mount Carmel in the Rocky Mountains of Wyoming. There is a nearby location called the Irma Lake Ranch that would include a large house, caretaker house, guesthouse, a gothic church, a convent for Carmelite nuns, a hunting cabin and a dairy and horse barn; this would allow the monks to expand their opportunities, as well as expand their Carmelite monk residents (Thompson, 2012, pg. 421). This vision is everything that Father Daniel Mary ever dreamed, the only thing prohibiting the change, is that the Irma Lake Ranch will cost the monks $8.9 Million. The Mystic Monk coffee company only earns money based on their coffee sales (11% of revenues) and donations from private donators; the Carmelite monastery received a $250,000 donation which they can use at their discretion (Thompson, 2012, pg. 420,423). The following report will take a look at the options that are available to the Carmelite monks and what would be the most strategic plan that should be enforced in order for the monastery to be successful. External and Internal Analysis

S.W.O.T. Analysis

Strengths * Fair trade/ Organic Arabica beans * Variety of coffee flavors * Accessories (t-shirts, cups, CD’s) * Online shopping is available * Tea has been added to selection * Free labour/ No wages paid * Affordable/ reasonable retail price * Membership “coffee club” * Favors catholic market (large)| Weaknesses * Limited roasting capability (540 lbs/day) * Limited production due to worship * Cant expand due to limited land * Coffee is not a necessity (trend?) * Caffeine is highly addictive (health) * Purchase beans instead of growing * No business expertise/ experience * No absolute competitive advantage * Poor earnings (11% of revenues)| Opportunities * Expand availability into grocery stores * Collaborations (Keureg, Tassimo) * Other purposes (weight loss, bio fuel) * Increase advertisements * Expand into international market * Start a franchise * Open coffee shops (Starbucks, Tim’s)| Threats * Poor coffee growing season * Natural disaster/ weather * Economic Conditions (recession) * Established competition (Folgers, nabob) * Others’ personal religious beliefs * Dependant on donations/ revenues|

(Mystic Monk, n.d., pg. 1)

Alternatives

The Mystic Monk coffee company has to look at their options before they are able to make a decision regarding the continuation of their business. The two options that are available to the Carmelite monks at this point in time are: 1) stay at the current location of Clark, Wyoming, and continue operations as they are and use some donation money to purchase another roaster to help increase production or 2) see if the owners of Irma Lake Ranch would “gift” them a portion of the ranch without monetary repayment, as a donation, and they would pay the owners as a lease to own the remaining balance of the land, until a breakeven point has been reached. Discussion of Alternatives...
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