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Mystic Monk Coffee case

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Nusrat Zahan
Nusrat Zahan

The document summarizes the business operations of Mystic Monk Coffee, a business run by Carmelite monks in Wyoming. It details their goal of expanding operations to purchase land for a larger monastery. Currently producing 540 pounds of coffee per day, they plan to replace their roaster to increase production. This would allow them to generate an estimated $450,000-$717,500 annually, providing sufficient funds for their land purchase. The summary recommends diversifying sales channels and reducing affiliate commission fees to further improve profits.

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Welcome To Our Presentation
Our Group Members Are- ID Name 150301 Sihanuk Mustafa 150302 Mosammat Fatema Akter 150303 Nusrat Zahan 150305 Bahauddin Ahmed Bahar 150306 Md.Matiur Rahman
Introduction
A small video to introduce Mystic Monk Coffee
Summery: Near the Rocky Mountains in Wyoming, there are 13 Carmelite monks living in a small house serving as a makeshift rectory in Clark. These monks live a cloistered religious life and are dedicated to a life of prayer, silence and worship; along with following the vows of obedience, chastity and poverty. than 500 inquiries from young men within the community asking to join the Carmelites
To accommodate those people Father Daniel Mary realized that a larger more permanent location was needed He needs a property that would house a monastery, including a Gothic Church, 2 retreat centers, a convent and accommodations for approx 30 monks definitely proposed some concerns 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.
The Carmelites have a $250 thousand dollar donation that could be used toward the purchase of property. They have also been roasting coffee for the past year. Under the name of Mystic Monk Coffee the monastery has earned close to $75 thousand dollars. For funding it needs to sell more coffee as it is the main source of money So they plan to replace older roaster with a new one that will booster its production capacity
Vision & Objectives: Accommodate more interested Youth in Carmelites Buying a nearby ranch that is worth of $8.9 million Increasing the Production of coffee Selling More Coffee Improving The distribution capacity by using different modes Using website besides word of mouth to boost selling and Thus earn more
Strategy MMC conducts 2 layer business model Wholesale selling to Churches and local coffee shops Targeting niche or a small group gives it extra room to focus only to meet the need of that group It created a situation where its catholic small group has a mindset that they are contributing their dollar to the Christ and his catholic Using superior quality coffee beans
Investing to replace older roaster machine with a new one that will be able to increase production Offering Wide Variety of flavor Using Word of mouth ,phone order and website to stimulate selling Maintaining a set of loyal customers
Pros: Their strengths are in the fact that they use high-quality fair trade/organic Arabica coffee beans. They offer a variety of blends, roasts, and flavors and are able to appeal to wider range of coffee drinker preferences. The opportunities that Mystic Monk Coffee has in its unique approach toward coffee in that they are marketing towards the U.S. Catholic population who drink coffee and want to support the monasterys mission
The other prospect is presented in other coffee drinkers who are not necessarily Catholic, but are concerned about their health and social concerns. Since about 30 million coffee drinkers in the United States preferred premium-quality specialty coffee there is a huge opportunity for sales there.
Cons: Their weaknesses include the fact they are limited in production to 540 pounds-a-day until they get the new roaster. Another issue is that they are limited by Time as they devote most of their time to Prayer, meditation that give only six hours of work. There is basic competition and some people may not want to purchase Mystic Monk Coffee based on its religious background and meaning.
We do see a lot of problems with its current sales and 11 percent net profit margin as not being able to generate $8.9 million in earnings within a reasonable enough time frame in order to purchase the property that they want. The last point implies that Mystic Monk Coffee does have somewhat of a basic business plan it is severely limited
At a glance: Their Profit formula is Profit=Sales (total cost of goods sold + operating expenses + affiliate commissions) Currently without the new larger roaster they make an average net profit margin of $6,215 per month The 540 pounds-per-day with using the old roaster
With the purchase of the new roaster this would increase to 780 pounds-per-day based on the 6 hour per day work limit. This level of production would allow Mystic Monk Coffee increase its sales by a factor of 6. that implies the profit would be $75000*6=$450000 With this increase in production Mystic Monk Coffee should be able to negotiate better terms with suppliers, shippers and the coffee broker to get the costs of goods sold to go down from 52 percent to about 48 percent because of this volume increase.
Further this increased production volume will prove economies of scale This economies of scale will cut down operating expense from 37% to 33% Current profit margin with old machine is 11% An increase in production would cause the net profit margin to increase from 11 percent to 15-19 percent this improvement in the margins would result in an annual income for Mystic Monk Coffee of $566,000- $717,500.
Recommendation:RECOMENDATION Father Daniel Mary may also utilize the resources available to him from the Catholic Church to find major donors willing to contribute in the creation of the New Mount Carmel. The 540 pounds-per-day with older roaster could be put in 12 ounce bag this would average about 45 bags of coffee per day that could be sold. These 45 bags could give profits up to $448 per day.
Affiliated commission is 18%,that is very high and decrease profit margin , so MMC could stop doing business through those websites and look for cheaper alternatives Send email to catholic churches to buy from MMC for there churches Mystic Monk Coffee could even obtain permission to place banner ads or links on church and parish websites
They can hire outsiders as employee of coffee production because they have to busy with prayer and religious work also, that will increase the working growth. They can promote their coffee outside catholic churches Can freelance some jobs such as packaging labeling etc
I describe myself as a simple monk. No more, no less.--- Dalai Lama
Mystic Monk Coffee case

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Mystic Monk Coffee case

  • 2. Our Group Members Are- ID Name 150301 Sihanuk Mustafa 150302 Mosammat Fatema Akter 150303 Nusrat Zahan 150305 Bahauddin Ahmed Bahar 150306 Md.Matiur Rahman
  • 4. A small video to introduce Mystic Monk Coffee
  • 5. Summery: Near the Rocky Mountains in Wyoming, there are 13 Carmelite monks living in a small house serving as a makeshift rectory in Clark. These monks live a cloistered religious life and are dedicated to a life of prayer, silence and worship; along with following the vows of obedience, chastity and poverty. than 500 inquiries from young men within the community asking to join the Carmelites
  • 6. To accommodate those people Father Daniel Mary realized that a larger more permanent location was needed He needs a property that would house a monastery, including a Gothic Church, 2 retreat centers, a convent and accommodations for approx 30 monks definitely proposed some concerns 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.
  • 7. The Carmelites have a $250 thousand dollar donation that could be used toward the purchase of property. They have also been roasting coffee for the past year. Under the name of Mystic Monk Coffee the monastery has earned close to $75 thousand dollars. For funding it needs to sell more coffee as it is the main source of money So they plan to replace older roaster with a new one that will booster its production capacity
  • 8. Vision & Objectives: Accommodate more interested Youth in Carmelites Buying a nearby ranch that is worth of $8.9 million Increasing the Production of coffee Selling More Coffee Improving The distribution capacity by using different modes Using website besides word of mouth to boost selling and Thus earn more
  • 9. Strategy MMC conducts 2 layer business model Wholesale selling to Churches and local coffee shops Targeting niche or a small group gives it extra room to focus only to meet the need of that group It created a situation where its catholic small group has a mindset that they are contributing their dollar to the Christ and his catholic Using superior quality coffee beans
  • 10. Investing to replace older roaster machine with a new one that will be able to increase production Offering Wide Variety of flavor Using Word of mouth ,phone order and website to stimulate selling Maintaining a set of loyal customers
  • 11. Pros: Their strengths are in the fact that they use high-quality fair trade/organic Arabica coffee beans. They offer a variety of blends, roasts, and flavors and are able to appeal to wider range of coffee drinker preferences. The opportunities that Mystic Monk Coffee has in its unique approach toward coffee in that they are marketing towards the U.S. Catholic population who drink coffee and want to support the monasterys mission
  • 12. The other prospect is presented in other coffee drinkers who are not necessarily Catholic, but are concerned about their health and social concerns. Since about 30 million coffee drinkers in the United States preferred premium-quality specialty coffee there is a huge opportunity for sales there.
  • 13. Cons: Their weaknesses include the fact they are limited in production to 540 pounds-a-day until they get the new roaster. Another issue is that they are limited by Time as they devote most of their time to Prayer, meditation that give only six hours of work. There is basic competition and some people may not want to purchase Mystic Monk Coffee based on its religious background and meaning.
  • 14. We do see a lot of problems with its current sales and 11 percent net profit margin as not being able to generate $8.9 million in earnings within a reasonable enough time frame in order to purchase the property that they want. The last point implies that Mystic Monk Coffee does have somewhat of a basic business plan it is severely limited
  • 15. At a glance: Their Profit formula is Profit=Sales (total cost of goods sold + operating expenses + affiliate commissions) Currently without the new larger roaster they make an average net profit margin of $6,215 per month The 540 pounds-per-day with using the old roaster
  • 16. With the purchase of the new roaster this would increase to 780 pounds-per-day based on the 6 hour per day work limit. This level of production would allow Mystic Monk Coffee increase its sales by a factor of 6. that implies the profit would be $75000*6=$450000 With this increase in production Mystic Monk Coffee should be able to negotiate better terms with suppliers, shippers and the coffee broker to get the costs of goods sold to go down from 52 percent to about 48 percent because of this volume increase.
  • 17. Further this increased production volume will prove economies of scale This economies of scale will cut down operating expense from 37% to 33% Current profit margin with old machine is 11% An increase in production would cause the net profit margin to increase from 11 percent to 15-19 percent this improvement in the margins would result in an annual income for Mystic Monk Coffee of $566,000- $717,500.
  • 18. Recommendation:RECOMENDATION Father Daniel Mary may also utilize the resources available to him from the Catholic Church to find major donors willing to contribute in the creation of the New Mount Carmel. The 540 pounds-per-day with older roaster could be put in 12 ounce bag this would average about 45 bags of coffee per day that could be sold. These 45 bags could give profits up to $448 per day.
  • 19. Affiliated commission is 18%,that is very high and decrease profit margin , so MMC could stop doing business through those websites and look for cheaper alternatives Send email to catholic churches to buy from MMC for there churches Mystic Monk Coffee could even obtain permission to place banner ads or links on church and parish websites
  • 20. They can hire outsiders as employee of coffee production because they have to busy with prayer and religious work also, that will increase the working growth. They can promote their coffee outside catholic churches Can freelance some jobs such as packaging labeling etc
  • 21. I describe myself as a simple monk. No more, no less.--- Dalai Lama
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