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Mystic Monk Coffee

2nd Case Analysis for StraMa

Von Vilaga

on 23 November 2012

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Transcript of Mystic Monk Coffee

ACTION Father Daniel Mary’s vision of expanding the monastery in Clark, Wyoming of 13 Carmelite monks in a small home into a 500-acre monastery that costs $8.9 million is a big challenge considering limited resources. Father Daniel Mary needs to find ways of raising enough money for them to be able to realize their goal of expansion. •To yield higher sales of Mystic Monk Coffee.

•To be able to increase the coffee production of Mystic Monk Coffee without it interrupting the monks’ time for prayers.

•To increase people’s awareness of Mystic Monk Coffee and their foundation •The Carmelite monks have little human resource or manpower.

•The Carmelite monks are not being productive during their time for prayers and other ceremonies.

•The current coffee roaster of the monks has a limited production capacity.

•The online advertisements of Mystic Monk Coffee might be available on a limited number of sites only. A Case Analysis ACA1 Hire new workers to continue the operations while the monks are spending their time for prayers and other ceremonies ACA 2 Purchase a new coffee roaster for $35,000 ACA 3 Label the Mystic Monk’s Coffee packaging with information about their foundation and their plan for expanding. ACA 4 Tie-up with the leading distributor from the surrounding states to increase distribution. RECOMMENDATION Based on the alternative courses of actions given, the group recommends
because of the following reasons: •Purchasing new coffee roaster will increase the production of the Mystic Monk Coffee due to the large capacity it can produce.

•For the future increase of demand, the monks are equipped.

•The new coffee roaster performs faster than the old roaster. •With the new coffee roaster, everyday is a productive day.

•They can supply all the demands of their customers.

•They have a chance to increase their income. •Father Daniel Mary of the Carmelite Monks had a vision. He would like to make a reality that is to transform his 13 monks living in a small house to a 30 monks living in a 500-acre monastery, a Gothic church, a convent for Carmelite nuns and a retreat center.

•Father Daniel discovered a ranch that would make a perfect place for his vision, but unfortunately the place costs a whooping $8.9 million that is a bit far off of their budget

•Currently the Carmelites have $250,000 that they received from a donor and $75,000 they earned from its Mystic Monk coffee-roasting operation. FACTS OF THE CASE •In order for them to expand their production of coffee, they must purchase a larger roaster that costs $35,000.
•With regards to human resource they have daily activities as a monk

•On their manual labors, each are assign to their field of specialty. However, their production is limited due to other responsibilities as monk.

•Mystic monk coffee as their primary source of profit is composed of high-quality fair trade Arabica and fair trade/organic Arabica beans that the monks themselves produced. •With about 150 million consumer in America drinks coffee and 89% of those prefer brewing it themselves on their homes. 30 million of American coffee drinkers are willing to pay $7 to $10 for a premium-quality coffee.
•Majority of Mystic Monk Coffee’s sale comes from their website and telephone orders.
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