Mystic Coffee Case Study

  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’s vision is the acquisition of the 500-acre Irma Ranch. He intends to build a new extensive monastery that will increase the number of monks (30), retreat center, a hermitage, and a convent for Carmelite nuns. The mission of the Carmelite Monks of Wyoming is to create an environment symbolic of Mount Carmel to preserve their heritage.

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

No. Father Daniel Mary has only set the vision without an elaborate plan to execute it. There is no time limit set or annual financial targets set to gauge the project’s viability.

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

The Father’s strategy for achieving his vision is through accumulating profits generated by Mystic Monk Coffee (MMC) and donations through the New Mount Carmel Foundation established by Cody business owners. The competitive advantage inherent to MMC is the use of high-quality fair trade and organic Arabica beans. Organic beans are grown without synthetic fertilizers and pesticides (Mariyudi & Raza, 2018). These beans produce premium quality specialty coffee which people are willing to pay a higher price due to health and social reasons.

  1. 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 enable it to create and deliver value to customers?

No. The Mystic Monk Coffee operations net 11% of the revenues, which unsustainable in achieving a million-dollar enterprise. Mystic Monk Coffee’s customer value proposition only shows a call to support the enterprise but not about the quality or perception of the coffee among the customers. The resources used to deliver the premium coffee to consumers are limited to production and time. In addition, there is only one coffee brewer who has limited production knowledge of specialty coffee that can attract customers to the brand.

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

No. The strategy is constrained by the number of people who prefer to brew their coffee at home, thus leading to a shrinking market which translates to reduced revenues.

  1. What recommendations would you make to Father Daniel Mary to craft and execute strategy for the monastery’s coffee operations? Are changes needed in its long-term direction? Its objectives? Its strategy? Its approach to strategy execution? Explain.

There should be an elaborate business financial performance metric to ensure expenses do not erode the profits and help estimate the time parameters in achieving set goals. The monastery should market the coffee as a premium specialty instead of coffee brewed primarily for the catholic population. More people are shifting to buying packaged coffee; thus, MMC should change its approach to private labeling of the monastery coffee. The private label coffee is then sold at higher prices to cover the shipping and marketing costs (Cuneo, Milberg, del Carmen Alarcon-del-Amo, & Lopez-Belbeze, 2019). This ensures more market visibility and increased sales. Increased revenue translates to more financial freedom where the monastery can diversify into new markets and new projects, thus reducing the time limit in building the new sanctuary.

 

 

References

Cuneo, A., Milberg, S. J., del Carmen Alarcon-del-Amo, M., & Lopez-Belbeze, P. (2019). Private label and manufacturer brand choice in a new competitive reality: Strategic directions and the future of brands. European Management Journal, 37(1), 117-128.

Mariyudi, S., & Raza, M. S. H. (2018). Analysis of the Competitive Advantage of Arabica Gayo Coffee Organic in Indonesia. Indian Journal of Public Health, 9(12), 251.

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