Mystic Monk Coffee Essay Example for Free

Mystic monk coffee berry EssayIntroductionMystic Monk chocolate union is a skirt monastic environment where monks from the Carmelite monastery of Clark, Wyoming hand their daily manual labour hours roasting umber (Thompson, 2012, pg. 420). The monks are a religious sect of the Catholic church building 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 products, especially due to the slender 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, in becoming 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 feast that would include a overlarge ho persona, caretaker house, guesthouse, a gothic church, a convent for Carmelite nuns, a hunting cabin and a dairy and horse cavalry barn this would allow the monks to expand their opportunities, as surface 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 spreading 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 survivals that are available to the Carmelite monks and what would be the most strategical plan that should be enforced in order for the monastery to be successful. External and Int ernal AnalysisS.W.O.T. AnalysisStrengths * 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 labour/ No wages paid * Affordable/ honest retail price * rank 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/ find * 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 * break d induce a franchise * Open coffee shops (Starbucks, Tims) Threats * Poor coffee growing season * Natural disaster/ weather * Economi c Conditions (recession) * Established competition (Folgers, nabob) * Others personalized 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 conclusion 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 watercourse location of Clark, Wyoming, and hold on 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 AlternativesThe first option is to stay at their current location to shroud operations as they are. The advantages of choosing this option are 1) retaining their donations and revenues to improve their current monastery, 2) there 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 purchasing 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 allow its population to double. The disadvantages of choosing this option are 1) there is a tremendously high take of risk involved, 2) the owners may not gift the monks any land.RecommendationAfter 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 repaymen t, 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 more 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 undefendable 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 margi n from the current 11% of the sales revenue. The risk on this investment is exceptionally high, but if it is successful, the reward and pay off could be far greater than projected.Action PlanA realistic action plan must now be devised, to ensure 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 funds 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 eligi ble to receive 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 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 community, 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 essence 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.