Mission, Vision, Business Strategy of Mystic Monk Coffee shop

1. W650 – Business Strategy in a Competitive Environment
Case Study – Mystic Monk Coffee
Presented by Group1
• Md. Khaled Bin Kamal, Roll: ZR1903015
• Md. Akil Afzal, Roll: ZR2001040
• Md. Ashique Hasan, Roll: ZR2001033
• Mohammad Sohaib Hasan Chowdhury, Roll: ZR2001026
• Abu Saleh Yeasir Arafat Shamir, Roll: ZR2001028

2. Case Summary
• Mount Carmel was famous for s beauty, seclusion, and biblical importance as the site where Elijah stood against
King Ahab and the false prophets of Jezebel to prove Jehovah to be the one true God.
• The Carmelite monks are known for their expertise in roasting & selling gourmet coffee. Mystic Monk Coffee
was produced using high-quality fair trade Arabica and fair trade/organic Arabica beans.
• The monks produced whole-bean and ground caffeinated and decaffeinated varieties in dark, medium, and light
roasts and in different flavors. The most popular Mystic Monk flavors were Mystical Chants of Carmel, Cowboy
Blend, Royal Rum Pecan, and Mystic Monk Blend.
• Mystic Monk Coffee was promoted primarily by word of mouth among loyal customers in Catholic parishes
across the United States, websites, telephone orders
• The Mystic Monk Coffee website also featured T-shirts, gift cards, CDs featuring the monastery’s Gregorian
chants, and coffee mugs as trade offers.
• Mystic Monk Coffee’s targeted buyers are Catholics based in the United States.
• Father Mary needs a property that would house a monastery, including a Gothic Church, 2 retreat centers, a
convent, and accommodations for approximately 30 monks.
• Father Mary found a 496-acre ranch that including some buildings that could be used for the buildings outlined
above, but the $8.9 million dollar price tag was a financial obstacle.

3. VISION || MISSION || OBJECTIVE
To strengthen the Catholic church system
in America and to create a spiritual oasis
for American Catholics.
A spiritual oasis for Monks, Nuns and
priests. Father Daniel Mary wanted to
create a better life to the people in his
monastery by providing a peaceful
secluded life in the form of worship of
God.
New Mount Carmel
Mystic Monk Coffee company’s mission
is to meet the requirements of funds
needed to purchase the land that would
fulfill all their monastery’s purposes.
The focus is through the Mystic Monk
Coffee’s revenues and the donations
received by the monks for their
monastery.
Build the Capital
To reach the goal of financial
requirements of $8.9 million by
generating enough revenues
from Mystic Monk Coffee
company and donations to
purchase the land.
Vision Mission Objective
Strengthen the Church

4. Business Model - Mystic Monk Coffee
Key Partners
Key Activities
Value
Proposition
Customer
Segment
Cost Structure
Customer
Relation
Channel
Revenue Streams
 High Quality Arabica
Coffee
 Fair Trade Beans
 Multiple form of
Coffee – Ground
/Whole Beans, Decaf
 Added Flavors
 US based
 Catholic Christians
 Online Shop
 Affiliate Programs
 Wholesale
 Faith based
 Community centered
 Coffee Club
 Direct sales
 Website sale of Coffee
 Sales of Souvenir
 Voluntary Donations
 Coffee Broker
 Marketing Affiliates
 Website Host
 Souvenir Suppliers
 Postal Service
(UPS/USPS)
 Cost of Beans
 Affiliates Commission
 Website Hosting Cost
 Utility Cost
 Produce fair trade
premium coffee
 Sell souvenirs (CD,
mug, T-shirt)
 Carmelite Monks
 Coffee Roasters
 Sales &
Marketing
Personnel

5. 01
• Expansionofbrotherhoodthroughpurchase of
new land
• Iftheyproducemore,COGS willgodown
• Sale wholesaletocoffeeshopsandchurches
aroundthe country
Strengths
02
• Reasonable price for a premium quality coffee
• High quality Arabica coffee beans
• Variety of blends, roast and flavors
• Monk’s motivation to a specificgoal
• Catholiccustomers who support their mission
Weakness
05
• Some people may not buy due to its
religious affiliation
• Isolated from outside world
• The coffee price may increase after
purchasingthe land
Opportunities
04
• Low Production Capacity
• Low workinghour
• Advertisingis mainly word of mouth
Threats

6. DECISION CONTEXT: FIRST LOOK
Vision of Father Daniel Mary:
Convert the living facility of 13 monks to a 500-acre monastery with
accommodation of 30 monks, convent for Carmelite nuns, retreat center
for lay visitors, and a hermitage
Probable Option:
Purchase of nearby ranch costing $8.9M
Available Means:
Donations
Revenue from Mystic Monk Coffee

7. DECISION CONTEXT: CURRENT FINANCIAL SITUATION
Amount (USD)
Monthly sales 56,500
Annual Sales 678,000
Cost of sales (30% of Rev) (203,400)
Inbound & Shipping cost (19% of Rev) (128,820)
Broker Fees (3% of Rev) (20,340)
Total cost (52% of Rev) (352,560)
Gross Profit 325,440
Operating cost (37% of Rev) (250,860)
Net Profit (11% of Rev) 74,580
Profit-Loss Account
Amount (USD)
Opening balance 0
Retained Profit 74,580
Donation 250,000
Closing Balance 324,580
Balance Sheet

8. DECISION CONTEXT: AVAILABLE OPTIONS
• Customer creation by marketing , category expansion and value-added service by help of volunteers and at
minimal cost
• Increase more visibility of products by strategic partnership with supermarkets and coffee shops
• Attract more donations by organizing charity events and emotional souvenirs. For example, celebrity
endorsement (who supports the cause) will increase the donations dramatically
• Seek donations to its consumers or attract consumers by labeling the cause in the package and pricing
accordingly
• Appeal for more donations via catholic churches for investment in increasing capacity as well as donation
• Increase Profitability by purchasing directly from suppliers
• Reduce shipping cost by attracting volunteers for the job and turning the delivery operation into an
income opportunity
• Invest in coffee roaster for $35k producing additional 130 pounds per hour. And maximize the production
capacity
• Increase productivity by operational excellence. Increase working hour, hire professionals or skilled
volunteers for roasting and introduction of shifts for increased capacity (Running the roasting operation
24X7)
• Avail bank loan to purchase the ranch based on projected increased cashflow from the strategic moves
above

9. Recommendations (Strategic)
• Need to build a sustainable profit model
– Lowering costs rather and raising prices. Which will make its customer more than happy to spend money for a legal cause
– Eliminate brokers, the lower the purchase price the higher the profit
– Restructure the revenue model. Instead of not only being dependent on coffee offer value added services for example produce
and sell branded merchandise
– Target coffee shops, supermarkets in areas with high catholic presence for wholesale purchase or shelfing the coffee
• Offer a higher profit margin to its strategic partners. The higher the customer reach the higher the profit.
• Reduce variety of coffees offered thus lowering the purchase price and manufacturing cost
• Cut down delivery costs and making it another way of income
• Need to upgrade production capacity
– Ensure maximum production by resource and capacity utilization
– Try to utilize the young aspiring Wyoming Carmelites (about 500) to voluntary effort to help the coffee business
• Need Company strategy not short-term goal of earning $8.9 million based strategy: A franchise concept can be introduced for
market expansion. Instead of online platform only.