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Monks Coffee Essay

1411 words - 6 pages

1- It’s clear from reading this case that father Daniel Mary established a future direction for the Carmelite Monks of Wyoming, because he found a place to do his project on and he drew the direction for that. So in this case, we can separate this plan into two parts. The first one deals with the monastery itself, and the other deals with the Mystic Monk coffee. .. For the monastery, he wants to create a new Mount Carmel in the rocky Mountains, he wants to transform the a small brotherhood of 13 monks living in a small home used as makeshift rectory into a 500-arc monastery that would accommodates for 30 monks, a Gothic church, a convent for Carmelite nuns m a retreat center for lay visitors ...view middle of the document...

And since the MMC enterprise is a main part of the strategy , thus it has its own strategy of generating profit and accomplishing competitive advantage in the market , and here are some of the competitive advantage points :
* Using high-quality fair trade Arabica and fair trade /organic Arabica beans
* The concentration of the target market which is U.S Catholic population who drank coffee and wished to support the monastery’s mission
* Sales using website and telephone calls
* Website offers such as T-shirts, gift cards, CDs featuring the monastery’s Gregorian chants , and coffee mugs
* Expanding to include the wholesale sales to churches and local coffee shops
* Good advertising process (affiliate sites earn 18%)
These are some of the points which makes the strategy differentiated and allows for competitive advantage game. The MMC specializes in its use of high quality beans, and the variety in sizes and flavors. In addition to that, the good reputation and image for MMC in the market and in people’s minds supports that, not forgetting that the text mentions that more than 69 million Americans were members of the Catholic Church which is the target of MMC.
Mentioning all of the above m we can notice that MMC uses a differentiation strategy with some competitive advantage points that make it hard for a rival to overcome this.
4- Yes, Mystic Monk coffee’s strategy is a money maker strategy because it targets 150 million customer (people who drink coffee in U.S) and it generates revenue and profits. According to the business model, it seems that its main title is to expand sales and increase production and get more funding to the project. The plan for this is by buying a 130 pound-per-hour roaster and by including wholesale sales to churches and local coffee shops. From here, we can talk about the customer value position and the profit formula. First, we can say that there is a strong customer value proposition, we can conclude that from the differentiation strategy discussed in question 3 since the product is a high-quality product which meets the preferences of customers and maximize their utility, , and the presence of large variety and flavors. Second, talking about the profit revenue will return us to analyze the business model .The case says that the profit margin is 11% of revenues , it is positive , but of course doesn’t generate the required amount for buying the ranch. First, many of the costs stated are variable, this means that they will increase as production increases! And the fixed cost are high (39%) but this should decrease as production increases. we should also address the 18% loss of sales occurring through affiliate websites (the commission ) .This shows a huge amount of costs which should be reduced. Let’s say now that we added the new roaster , and taking into consideration the time limit of working which is 6 hours in addition , and the limit production is 540 pound per day which...

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