Mystic Monk Coffee Essay

IntroductionMystic Monk coffee attach to is a cloistered monastic environment where monks from the Carmelite monastery of Clark, Wyoming spend their effortless manual labor party 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 intimately 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 cosmos of monks that are up to(p) 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, unequal land and partial workers. Father Daniel bloody shame, the prior of the Carmelite order, had a vision of expanding the small monastery of 13 monks, by creating a current Mount Carmel in the unsmooth Mountains of Wyoming.There is a nearby locatio n 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 will 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 silver based on their coffee sales (11% of revenue enhancements) and donations from private donators the Carmelite monastery god a $250,000 donation which they can use at their discretion (Thompson, 2012, pg. 420,423). The followe 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. foreign and Internal AnalysisS.W.O.T. AnalysisSt rengths * Fair trade/ Organic Arabica beans * Variety of coffee flavors * Accessories (t-shirts, cups, CDs) * Online shopping is available * Tea has been added to selection * Free task/ No wages paid * Affordable/ reasonable retail price * Membership coffee club * Favors catholic market (large) Weaknesses * Limited roasting efficacy (540 lbs/day) * Limited production due to worship * Cant expand due to limited land * Coffee is not a necessity (trend?) * Caffeine is super addictive (health) * Purchase beans instead of developing * No business expertise/ experience * No absolute competitive advantage * Poor earnings (11% of revenues) Opportunities * amplify availability into grocery submits * Collaborations (Keureg, Tassimo) * Other purposes (weight loss, bio fuel) * Increase advertisements * Expand into international market * Start a franchise * Open coffee shops (Starbucks, Tims) Threats * Poor coffee maturation season * Natural disaster/ weather * Economic Conditions (recess ion) * Established competition (Folgers, nabob) * Others personal religious beliefs * Dependant on donations/ revenues(Mystic Monk, n.d., pg. 1)AlternativesThe 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 chief in time are 1) stay at the ongoing location of Clark, Wyoming, and continue operations as they are and use some donation money to purchase an new(prenominal) roaster to help subjoin production or 2) see if the owners of Irma Lake Ranch would realize 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 AlternativesThe first option is to stay at their current location to continue operations as they are. The advantages of choosing this option are 1) retaining t heir donations and revenues to improve their current monastery, 2) thither is little to no risk involved. The disadvantages of choosing this option are 1) there is little opportunity to expand the Mystic Monk Company, 2) they cannot easily increase their Carmelite population.The second option is to move to a nearby area, which would involve buy the Irma Lake Ranch. The advantages of choosing this option are 1) the Mystic Monk Coffee can increase production easily, 2) there is a large opportunity to expand, 3) the new Carmelite monastery would permit its population to double. The disadvantages of choosing this option are 1) there is a tremendously high level of risk involved, 2) the owners may not gift the monks any land.Recommendation afterward evaluating the advantages and disadvantages of each alternative, a decision has been concluded that the most practical and strategic option would be to receive a portion of the Irma Lake Ranch, as a gift without monetary repayment, then pay the land owners on a lease to own schedule with the increased earnings projected from the new Mount Carmel location. This is the most logical selection if they want to expand and improve their Mystic monk coffee brand, as well as their community the Carmelites will have no opportunity to grow or expand if they choose to stay where they are and continue on as they have been, as well as soon they will not be able to keep the supply at an adequate level to cover the demand for their products.The Carmelite monastery would have much financial opportunities available with this purchase, such as milk production from the dairy cows, horse rides on the trails through the forest, increased population to help roast and package the coffee. Also, the monks would have sufficient land to be capable of growing and producing their coffee beans without the need of suppliers, which in turn will decrease the cost of goods sold and drastically increase the Mystic Monks net profit margin from the cur rent 11% of the sales revenue. The risk on this investment is exceptionally high, but if it is successful, the refund and pay off could be far greater than projected.Action PlanA realistic action plan must now be devised, to arrest that the previous decision is executed correctly, otherwise the Carmelite monks and the Mystic Monk coffee company will not be successful. The monastery is incapable of affording the Irma Lake Ranch with the office that they currently have, including the $250,000 donation. The Mystic Monk coffee company should confront the current owners of the Irma Lake Ranch and see if they would be willing to gift them a portion of the property without monetary repayment, which could be considered a donation the remaining balance owing on the land could be contracted as a lease or rent to own situation, where a breakeven point would be reached in a reasonable time frame. Also, because the property has been gifted to the Carmelite monks, they would be eligible to re ceive a tax break, which would significantly affect their financial status.The new property would be able to offer the monastery an opportunity to expand their brand by introducing tourism, sustainability and other financial opportunities. If the Mystic Monk coffee company decided that they would be capable or growing their own beans on the new land, they would be able to drastically cut costs on the cost of goods sold and eliminate suppliers, which in turn will increase their marginal earnings from the sales revenue. all(a) of these new opportunities are realistic and show that the increased earnings would rapidly and effortlessly be able to pay off the remaining balance owing to the original Irma Lake Ranch owners.ConclusionIn conclusion, the Mystic Monk coffee company has been successful with its entrance into the coffee market, however demands are increasing and new opportunities are being presented to the Carmelite monastery. If they wish to grow and expand their business and c ommunity, they are going to need to take the risk which is to relocate to a more practical location, ideally the Irma Lake Ranch.Irma Lake Ranch offers many new prospects to the Carmelite monks, which they would not be exposed to if they stay at their current location. This property can allow them to be independent from suppliers and venture into new venture projects such as introducing horse trail rides and milk from the dairy cows. Although the monks are a non-for-profit group, the sales revenue will mostly be paid to the original property owners until the principal amount is depleted, the rest of the money from earnings and donations will be put towards building, growing and maintaining the new Mount Carmel Monastery.ReferencesMystic Monk Coffee Buy Coffee Beans Online Online Coffee Store. (n.d.). Mystic Monk Coffee Buy Coffee Beans Online Online Coffee Store. Retrieved January 24, 2013, from http//www.mysticmonkcoffee.com/store/storefront.php Thompson, A. A., Peteraf, M. A., Gamble, J. E., & III, A. S. (2012). Case 1. Crafting and Executing Strategy (18th Edition ed., pp. 420-424). New York McGraw-Hill/ Irwin.