Case #1, Mystic Monk Coffee
Mystic Monk Coffee is a coffee producing company who sells their coffee products while targeting the churches for the customers. This report provides insight on their vision and mission. They want to expand their business to purchase Irma Lake Ranch of worth $8.9 billion by enhancing the current operations. Their strategy has been analyzed to check they have a winning strategy to accomplish MMC goals or not. Along with this, recommendations have been provided to enhance their business within a short time.
- 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?
Yes, Father Daniel Mary established a future direction for the company. His foremost vision was to deploy a new monastery where 30 monks can be accommodated. Along with this, he wanted to have a retreat center for lay visitors, a convent for Carmelite nuns, a Gothic Church and a hermitage. He wants to have a hermitage on an Irma ranch which costs approximately $8.9 million. The mission for Mystic Monk Coffee was to expand the business and operations, so that maximum profits can be earned to fulfill the vision for the new monastery near the Irma ranch. To expand the monk from 13 to 30 and buying Irma was the main mission of Carmelite Monks of Wyoming.
- Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision?
Yes, Father Daniel Mary developed a well set of definite objectives as well as target performance to achieve his vision regarding the new monastery. He needed huge money to buy the Irma Lake Ranch. But limited production capacity of the roster was the main issue to attain higher profits from the Mystic Monk Coffee. So, he decided to purchase the new roster with which the coffee production capacity will increase from 540 pounds of coffee to 780 pounds of coffee. Along with this, he gave an emphasis on increasing the distribution of coffee. Previously, he was not able to sell much coffee. But when he will introduce a website for his Mystics Monk coffee, the sales will increase abruptly. All these things show that he has set objectives in a good manner.
- What is Father Prior’s strategy for achieving his vision? What competitive advantage might Mystic Monk Coffee’s strategy produce?
The father adopted a strategy to generate profits from the Mystic Monk coffee in order to create the new Mount Carmel. Therefore, Father decided to purchase a roster which can produce with high capacity. The new roster could produce 540 pounds of coffee per day with a capacity of producing 130-pound coffee in an hour. The high quality of coffee with a wide array of blends is the competitive advantage of the Mystic Monk Coffee. His brother Java roasts organic and high-quality Arabica beans into four different blends that include Cowboy Blend, Mystic Monk Blend, Chants of Carmel and Royal Rum Pecan.
Secondly, he used marketing strategy to accomplish the vision to buy the Irma Lake ranch. He decided to provide easy and quick Mystic Monk Coffee access to a large number of people. The customers were able to avail the coffee through the online website as well as Phone call. Therefore, the main competitive advantage for the Mystic Monk Coffee over their rivals was providing easy and quick coffee access to its customers. Therefore, they have a niche target market for their coffee products because of promoting word of mouth marketing strategy.
- 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? Is it profit formula? It’s resources that enable it to create and deliver value to customers?
According to me, Mystic Monk Coffee strategy is a profit maker. Their target market segments comprise the United States Catholics. Their current business strategy is to buy a new roster which can roast 780 pounds of coffee in a day instead of 540 pounds. Secondly, MMC decided to establish wholesales to coffee shops as well as churches.
Mystic Monk Coffee’s customer value proposition is great. It is because they provide only high quality of coffee to its customers. Their coffee quality is the main thing that attracts most of the customers. Therefore, there is no doubt that they are providing products as per the target market standards. Yes, they possess the profit formula. But they have limited the working hours to 6 hours only which restricts their capability to sell a number of products. The working hours limit their profits and thus an obstacle in accomplishing the vision. Along with this, limited manpower and marketing strategies are some other constraints associated with their profit margin.
- Does the strategy qualify as a winning strategy? Why or why not?
If we compare MMC strategy as their strategy to earn the profit, then we can say that they have the winning strategy. But if we compare it with their objective for the MMC, then it is a very slow winning strategy. Considering the external situation, it is winning strategy where they would be able to have a significant number of loyal customers for the long run. But considering the internal situations, they are losing numerous opportunities to increase their profits. They are running good which is apparent from the increased profit and number of customers every year. But looking at their goal to attain enough funds to fulfill the main goal, then they have a failing strategy. It is because 11% profit is too low to reach $8.0 billion in short time. It will take numerous decades to earn this huge money if they will run with the same strategy.
- 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? Is it objectives? Is it strategy? Is it approach to strategy execution? Explain.
As discussed previously, MMC has winning strategy for earning profit but not to fulfill their goals. So, below are some recommendations that would help them to accomplish their goals.
- They need to take time to decide how to implement the new strategy to accomplish the goals.
- If they are buying a new roster with high capacity then they should also increase the working hours as well as the workforce.
- They should not limit to the website only or the sales. It is necessary to reach different churches and stores to provide a large number of options to the consumers to purchase their coffee.
- They can improve their current status through marketing and advertising.
MMC has great marketing and business strategy to earn a profit. They can increase their profits with the decision to busy the new roster having high capacity. But they need to enhance their strategy to accomplish the vision to busy the Irma Lake Ranch. They should increase the number of working hours and workforce to further increase the profits and accomplish the vision.
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Murari, M. (2013, October). The Mystic Monk coffee: a case study by Murlidhar Murari on Prezi. Retrieved from https://prezi.com/st4bsujc6vxk/the-mystic-monk-coffee-case-study/
Lee, H. (2014). Mystic Monk Coffee C1 | Harper Lee – Academia.edu. Retrieved from http://www.academia.edu/8243274/Mystic_Monk_Coffee_C1