4. Is Mystic Monk Coffees strategy a money-maker? What is MMCs business model?

What is your assessment of Mystic Monk Coffees customer value proposition? its profit formula? its resources that enable it to create and deliver value to customers? Mystic Monk Coffee businesss strategy is a money-maker. In the overview of the coffee industry, it was reported that there are 150 million consumers that drink coffee in the US, with a net profit/revenue of 11% (since 89% of U.S. coffee drinkers brew their own coffee at home rather than purchasing ready-to-drink coffee at coffee shops) and with this, the coffee business has the good potential to generate profit. The net profit could possibly be even higher since the Mystic Monk Coffee houses quality products and efficient usability. The business model illustrates ways on how the company will generate sure profit. Mystic Monk Coffees business model includes the plan of increasing the over-all production of their quality coffee by buying a new coffee roaster, and also putting up wholesale sales to churches (like the Carmelites of Wyoming) and local coffee shops. MMC is a product with a successful customer value proposition. Using highquality fair trade Arabica beans produces the coffees of MMC that considers it a specialty coffee. The product also offers a wide variety of flavors like Mystical Chants of Carmel, Cowboy Blend, Royal Rum Pecan, and Mystic Monk Blend to name a few. The business web site offered free shipping to consumers if they purchase 3 bags of MMC coffee or more, which is a good strategy because it attracts the customers to buy more and save money for shipping/delivery fee. MMC also offered secular website operators commissions on its sales through its Mystic Monk Coffee Affiliate Program that placed web banner ads and text ads on participating websites. These affiliate websites earned 18% commission on sales made to customers who were directed to the MMC site from their website with the help of the ads. Profit formula or revenue model illustrates the ability of the company or business to create value for itself, or hence the ability to see how profit will generate in the business. With MMCs strategy of increasing the production of coffee in their business model, then we have assessed that MMC holds the ability to increase its value of itself. For the Wyoming Carmelites, coffee sales were a means of support from the outside world that might provide the financial resources to purchase the land. To sum it all up, if the new roaster is purchased and if the work/labor time of the monks who work at the MMC will increase by a couple of hours, then the plans would help in increasing the production of coffee. 5. Does the strategy qualify as a winning strategy? Why or why not? Mystic Monk Coffees business strategy is qualified as a winning strategy because the business (MMC) provides quality products that will attract loyal coffee consumers to their brand. The business also upholds potentiality in expanding their sufficiency of producing more coffee, as well as distributing them. Assessing their plan of purchasing a new coffee roaster that is large enough, theyll be able to increase their coffee production. If they start to apply their plan of producing more, then their profit will really increase since they have the edge to compete in the market because they are known to produce specialty coffee which consumers are willing to pay a higher price (because MMC is made out of fair trade organic Arabic beans just suitable for the consumers health and social concerns).

6. What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monasterys coffee operations? Are changes needed in its long-term direction? Its objectives? Its strategy? Its approach to strategy execution? Explain. The monks of MMC can gather help from the community where they belong by asking for promotions or publicity favors for their brand, and even get willing workers whom they can pay a low salary amount or even for free for a specified amount of time until they get to the status of earning a lot. Another recommendation to Father Daniel Mary is that he should open up a physical store where actual transactions can take place. At least with physical stores, they can save time and money from the delivery/shipping expenses (like time in producing the coffees ahead, gas expenses, etc.) and also theyll be able to meet their customers personally which is also good for their business strategy since MMC was primarily promoted by word of mouth among loyal customers in Catholic parishes across the Unites States. These changes are needed for its long-term direction (opening up a physical store) so that Father Daniel Mary can gain profit. With this, he can raise more funds to buy a bigger land for a bigger Monastery. Changes are also needed in its objectives because buying a new large coffee roaster would only not produce more coffee and profit but it will also help him in his vision of purchasing the Irma Lake Ranch and market their products to gain a sustainable competitive advantage. If the physical store is built, then the business also needs to hire more workers like monks to do and perform the work so that they can efficiently produce more quality coffee without consuming much production time.