1.

Father Daniel Mary has established a plan and direction to grow the Carmelite monks of
Wyoming. Father Daniel Mary and his small brotherhood of 13 monks live in a small
house that is used for the rectory, he has his eyes set on a 500 acre property with three
different buildings and an ideal spot for his monastery that would include accommodation
for 30 monks, a gothic church, a convent for Carmelite nuns and a retreat center for lay
visitors. The vision for the Mystic Monk Coffee is to expand its operations by buying a
new brewer that would produce more coffee, increasing the customer based by reaching
out to more catholic churches and corporate sponsors and getting support from more of
the outside world to generate sales and ultimately purchase the Irma Lake ranch. The
mission of the Carmelite Monks of Wyoming is to live a peaceful secluded life working,
worshipping and living within their means. However, Father Daniel Mary has a vision to
improve their lifestyle and living conditions and their coffee business.

2. Yes. Father Daniel Mary has a clear financial path to achieve his goal of owning and
moving his monastery to Irma Lake Ranch. For the Wyoming Carmelites the sale of
coffee should provide the means to finance this project, however, there has to be strategic
plans in place to increase the production of coffee (such as more laborers and bigger
equipment with the capacity to produce more.) to generate sales (to tap into new markets
and increase market shares) and finally to minimize cost of production. (Using less
expensive suppliers and lessen operational costs overall).

3. Father Daniel Mary strategy is to use the business, Mystic Monk Coffee to realize his
goal of purchasing Irma Lake Ranch. The business has a competitive advantage with the
variety of flavors they offer, not many coffee shops, even the coffee giants offer the
popular flavors such as Royal Rum Pecan, Mystic Chants of Caramel, Cowboy Blend and
Monk Blend. In addition, the Catholic Church is four times larger than the second largest
denomination in the US and Mystic Monk Coffees target market is the segment of the
Catholic Church that drinks coffee and those who wish to support their mission. If they
get the support of most of their fellow church members they would be very close to their
goal of 8.9 million dollars.

4.

5. Their strategy is a winning strategy in my opinion, firstly, Catholics will supports their
fellow members in whatever business venture they undertake, as a Catholic myself I am
in full support of the many small businesses that arises from the church and with proper
planning and a great leadership these businesses do very well.
6. I would recommend that there be an increase in the amount of coffee produced either by
increasing man power or by extending the hours.
SWOT Analysis Worksheet
For instructions on using SWOT Analysis, visit www.mindtools.com/rs/SWOT.
For personal career or life strategy, visit
www.mindtools.com/rs/LifePlanWorkbook.

Strengths
What do you do well? What unique resources can you draw on? What do others
see as your strengths?

Weaknesses
What could you improve? Where do you have fewer resources than others?
What are others likely to see as weaknesses?

1. Mystic Monk Coffee is produced by using high-quality fair trade/organic
Arabica beans. And it also has a variety of flavors; 2. Mystic Monk Coffee
website features T-shirts, gift cards, CDs featureing the monastery's Gregorian
chants, and coffee mugs. 3.The cloistered monastic environment offer unique
challenges to operate a business enterprise.

1. The capacity of Mystic Monk Coffee's roaster limited production to 540 pounds
per day; 2. The production is also limited by time devoted to prayer, silent
meditation, and worship;

Opportunities
What opportunities are open to you? What trends could you take advantage of?
How can you turn your strengths into opportunities?

Threats
What threats could harm you? What is your competition doing? What threats do
your weaknesses expose you to?

1. Mystic Monk Coffee is a unique coffee for U.S. Catholic population who drink
coffee and wish to support the monastery's mission; 2. When the other
people(not Catholic) buy Mystic Monk Coffee, they are not only can taste the
delicious coffee, but they also support the Carmelite monastery in the Rocky
Mountains of Wyoming; 3. Their prices are cheaper than the others' well-known
brands; 4. Mystic Monk Coffee has a unique meaning for Catholics that is made
by monks and supported the monasteries.

1.Because of the backgroud and meaning of Mystic Monk Coffee, most
Christians and other religions, they may not purchase Mystic Monk Coffee; 2.
The majority of Mystic Monk's sales are made through its website. So this brand
can not find in the grocery... [continues]




Introduction
Father Daniel Mary, a monk in Clarke, Wyoming, has a vision to move and ultimately
expand the Carmelite brotherhood to a 496 acre monastery (Irma Lake Ranch). Here, he
could accommodate new men into the brotherhood, and build his business establishment.
For the past year Father Mary and his brotherhood have been purchasing Arabica coffee
beans from Seattle, to distribute under the name Mystic Monk Coffee. The problem that
arises is the capacity that the current monastery can produce (540 lbs/day). There are also
many expenses the monks face while currently operating. If the monks could move to
Irma Lake Ranch, many problems could be resolved; unfortunately, there are financial
barriers to purchasing the ranch. An execution plan needs to be developed to realize the
opportunity of purchasing Irma Lake Ranch.



SWOT Analysis
Strengths

Affordably priced
Free labour
Healthy organic Arabica beans
Accessories and tea are also advertised on web site
Online shopping and shipping
Variety of coffee flavours available
Markets favourably to catholic people who take up much of the population
Weaknesses

Organic coffee could be a trend
Monks do not have business experience
Limited capacity at current location (540 lbs/day)
Highly addictive due to caffeine content
Production is limited due to prayer and worship
Beans are purchased instead of grown
Poor revenues (11%)
Opportunities

Franchise
Expand globally
Increase marketing and advertisement
Collaborations with large companies (Tassimo, Keurig)
Distribute in grocery stores
Integrating new products


Threats

Environmental conditions (weather)
Economic conditions (recession)
Established competition (Folgers)
Religious beliefs
Currently depend on donations




Alternatives
There are two main options that Father Mary could choose to execute. The first option is
to forgo the purchase of the ranch and continue... [continues]
Mystic Monk Coffee Case Analysis Questions Management 4480 Fall 2012



1. What is the mission of Mystic Monk Coffee?

The mission of the Carmelite Monks of Wyoming was to be able to earn money to buy
the Irma Lake ranch and to expand from 13 monks to 30, gothic church, retreat canter and
convent




2. What is the basic strategy that Mystic Monk Coffee seems to be using to achieve their
mission?

Increase the production of coffee. Coffee sales were a means of support from outside
world to finance the purchase of the land. Demand for Mystic Monk Coffee exceeded the
capacity of a roaster and the monastery had planned to invest in a larger roaster.



3. What is/are the source(s) of competitive advantage for Mystic Monk Coffee?

Its competitive advantage is the market niche of focusing on Catholics worldwide and
to produce more of the coffee
EXECUTIVE SUMMARY
The Carmelite Monks of Wyoming are a religious order of the Catholic Church, founded
by Father Daniel. Father Daniel Mary has a vision of moving the monastery from the
current small makeshift home to a 500-acre Irma Lake Ranch capable of housing up to 30
monks, a Covent, a retreat center, and a hermitage. The current price of the Irma Lake
Ranch is listed as $8.9 million, which presents a considerable financial obstacle in this
pursuit.
The Carmelites Monks of Wyoming currently run a coffee business called Mystic Monk
Coffee (MMC). Father Daniel Mary, while looking at the financial capabilities of the
monastery, is evaluating the possibility of achieving the Monasterys strategic goal with
current resources. This is a relatively large leap compared to the current 4-bedroom
range style home, which currently houses only 13 monks. Father Daniel Mary, who lacks
the business experience, is considering to what extent the Carmelites can rely on the
Mystic Monk Coffee operations to fund the remaining balance of the Irma Lake Ranch
purchase. Our recommendations take into account the following considerations:
The received donation of $250,000 and current plea for additional funds.
The capacity and profit potential of the current roaster.
The capacity and profit potential along with ROI of upgrading to the larger roaster.
The market potential for sales and growth.
The time constraints resulting from the strict Carmelite schedule and routine.
The needed $445,000 down payment (assuming 5%) on a negotiated $8.5 million
purchase price and the $40,365 monthly mortgage payment on a 30yr loan at 4% rate.
Our research provided some possible scenarios that will guide our recommendation:
Invest in the...


Mystic Monk Coffee
Company History
Mystic Monk Coffee is a company established by Father Daniel Mary, the Prior of the
Carmelite Order of monks in Clark, Wyoming. The monks are a group of 13 living in a
small home. Coffee sales are used to support the brotherhood and to eventually prepare
for expansion of the order.
Coffee is produced using high quality fair trade Arabica and fair trade/organic Arabica
beans. There are many popular flavors such as Mystical Chants of Carmel, Cowboy
Blend, Royal Rum Pecan, and Mystic Monk Blend. The companys traditional target
market has been the segment of the U.S. Catholic population who drinks coffee and
supports the monasterys mission.
Industry Analysis
The approximate number of coffee consumers in the United Stated is 150 million and 89
percent of those drinkers prefer to make coffee at home rather than purchase from
franchises. Of the consumers who drink coffee at home, approximately 30 percent prefer
premium specialty coffees that sell for $7 to $10 per 12-ounce package. These coffees are
made from high quality Arabica beans rather that low quality, bitter Arabica beans.
Mystic Monk Coffee is among the distributors that produces a higher quality product.
Company Mission
The current mission is to produce a high quality product that is marketed to the segment
of the U.S. catholic population who drink coffee and wish to support the monasterys
mission. The monks make their appeal by asking the Catholics to use their Catholic
coffee dollar for Christ and his Catholic church. This is published on the website.
Company Objective
Mystic Monk Coffee has a primary goal of transforming the small brotherhood of 13
monks lining in the small home to include accommodations for 30 monks. There is a
property in the Rockies with an asking price of $8.9 million. The monks currently have a
donation of $250,000 and a plan to raise the remainder of the funds. There are currently
more than 500 inquiries who want... [continues]