Mystic Coffee - Case Analysis

Running head: MYSTIC COFFEE: CASE ANALYSIS
MYSTIC COFFEE: CASE ANALYSIS
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Name of the University
Author Note

MYSTIC COFFEE: CASE ANALYSIS1
Table of Contents
Introduction................................................................................................................................2
History of Mystic Monk Coffee.................................................................................................2
Strengths and weakness of Mystic Monk Coffee.......................................................................4
External environment of Mystic Monk Coffee..........................................................................5
SWOT analysis of Mystic Monk Coffee....................................................................................8
Corporate Level Strategy of Mystic Monk Coffee..................................................................10
Business Level Strategy of Mystic Monk Coffee....................................................................10
Structure and control systems of Mystic Monk Coffee...........................................................11
Financial analysis of Mystic Monk Coffee..............................................................................11
Recommendation......................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

MYSTIC COFFEE: CASE ANALYSIS2
Introduction
This paper is going to provide a case study analysis in details about the company,
Mystic Monk Coffee and conduct both internal and external analysis in order to suggest
suitable recommendations for the business in order help the business expand and fulfill the
desires and missions.
History of Mystic Monk Coffee
Mystic Monk Coffee is a very small-batch of coffee, roasted by the Carmelite Monks
in Wyoming. In Wyoming, Father Daniel Mary is considered to be the prior of Carmelite
order of monks in Clark, Wyoming. Father Daniel Mary had set forth a vision to expand the
monastery that they were currently residing in in order to establish a concrete direction for
the positive future and development of the Carmelite Monks. Father Daniel Mary visioned
the transformation of a very small house in which once around 13 monks would live together
into a beautiful and a huge monastery of 500 acres that could accommodate around 30
monks, a convent for the nuns, Gothic Church, retreat center so that they could lay people
and also for hermitage. Father Daniel Mary, in his mind wanted to purchase and acquire the
Irma Lake Ranch which was his most vital mission, he wanted to purchase this land in order
to grow and increase the monastery in terms of size. However, this vision of Father Daniel
Mary was very expensive as the Irma Lake Ranch costed $8.9 million which has created a
main obstacle for the vision which he wanted to turn into reality. Father Daniel Mary though
that the coffee company, Mystic Monk Coffee that was operated by the monks could be of
help and help in funding the purchase of this new desired ranch.
Mystic Monk Coffee was operated by the monks for the past one year where they had
been roasting coffee and this work of theirs had led them to earn around $75000 which Father

MYSTIC COFFEE: CASE ANALYSIS3
Daniel Mary has been thinking of using the fund to carry out his vision which is to buy the
500 acre land so that he can successfully expand the monastery. Currently, Mystic Monk
Coffee is mainly into the roasting business and it can be seen that they use fair traded, organic
and fair traded Arabic beans. The monks produce and develop ground caffeinated, whole
bean and varieties od decaffeinated beans in light, dark and medium roasts and also in various
flavours. The most popular flavour of the company was the Mystical Chants of Caramel,
Royal Rum Pecan, Mystic Monk Blend and Cowboy Blend. Mystic Monk Coffee does not
use any marketing strategies to market their products rather their sales happen due to the
positive reputation and word of mouth. Mystic Monk Coffee currently sells their fine roasted
coffee via their official website and sometimes through telephone orders and is mainly caters
to the Catholics who prefer drinking coffee. They sell 12 ounce of a bag of coffee for $9.95
and often provide their customers with offers like free shipping if they purchase more than
two or three bags of coffee and also provides them an option to their customers of joining
their coffee club where the benefit that the customer will receive one to six bags of coffee
every month. Mystic Monk Coffee alongside their coffee also sold gift cards, CD’s that
featured the Gregorian chants that are chanted in the monastery, coffee mugs and T-shirts.
The monks have changed the business model of Mystery Monk Coffee and have
expanded their business which helps them in providing wholesale sales of the products by the
brand in the churches and also sell their products to the local coffee shops which will help
them in generating more profits.
Mystic Monk Coffee generates decent revenue of around $56,500 per month in their
first year including the sales of the accessories that they provide online via their official
website. The gross profit margin of the coffee company that is operated by the monks
averaged at around 11 percent of the total revenues. This is how the Mystic Monk Coffee was
growing and developing since its inception. However, the vision of Father Daniel Mary is