Mystic Monk Coffee: Case Study and Analysis

This report provides a brief discussion about Mystic Monk Coffee, its objectives, SWOT analysis, and business-level strategy. It also includes an analysis of internal strengths and weaknesses, external threats and opportunities, and recommendations for enhancing the business.

Running head: Mystic Monk Coffee
Case Study
On
Mystic Monk Coffee
Name of the Student
Name of the University
Author Note:

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Table of Contents
Introduction:..........................................................................................................................................2
Analysis:................................................................................................................................................3
Internal Strengths & Weaknesses:.....................................................................................................3
Internal Strengths –........................................................................................................................3
Internal Weakness –.......................................................................................................................3
External Environment........................................................................................................................4
Threats –........................................................................................................................................4
Opportunity –.................................................................................................................................5
SWOT Analysis:................................................................................................................................5
According to the................................................................................................................................5
Strengths:.......................................................................................................................................6
Weaknesses:..................................................................................................................................6
Opportunities:................................................................................................................................7
Threats:..........................................................................................................................................7
Business-Level Strategy:...................................................................................................................7
Mission –.......................................................................................................................................7
Vision –.........................................................................................................................................8
Goals –...........................................................................................................................................8
Function Level Strategy –..............................................................................................................9
Recommendation and Conclusion:........................................................................................................9
Recommendation –............................................................................................................................9
Conclusion –....................................................................................................................................10

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Introduction:
This report is prepared in order to provide a brief discussion about Mystic Monk
Coffee. Followed by the report it will cover how Mystic Monk Coffee was introduced and its
objectives. Along with this, the report will also cover a SWOT analysis on Mystic Monk
Coffee in order to determine the weakness and strength of the business process of Monk
coffee. As well as the analysis of business level strategy. Lastly, this will conclude with a
recommendation to enhance their business. Analyzing the business growth of Mystic Monk
Coffee it has been observed that it is one of the top selling gourmet coffee by the monks of
Carmelite and it has won several awards for their best quality products as well. According to
the case study Mystic, monk Coffee was initially introduced in order to collect funds to
maintain the Carmelite Monk Monastery present near the mountains of Wyoming. Initially,
there was a small house where 13 Carmelite monks were surviving their religious life with
worship and silence. After certain many young men decided to join the Carmelite
community. Since, at that time the Carmelite monastery had less capacity, Daniel Mary who
was the father of Carmelite have realized that there is essentiality for a large space. While
searching for a good location for the monastery which can have accommodation for at least
30 monks, a convent, 2 Centers of retreat, as well as a Gothic Church father, has found a plot
of 496 acres along with few buildings. However, the plot was appropriate for monastery there
was a significant financial obstacle as the cost of that plot was $8.9 million. However,
Carmelites have received a donation amount of $250 thousand dollars it was not enough
bought that property. Considering the fact that they have only one financial support which is
the coffee roasting service father has decided to enhance the service by adopting the online
facility to sell their product in order to gather rest of the amount which can help them to buy
the plot. Along with these activities, the father decided to promote their product to other
churches as well as he decided to create its offline market availability. However, followed by
the case study they have tried to incorporate the offline product distributing service in their
business model, online service has a major contribution towards their success. With the
objective of purchasing the property of $8.9 million by overcoming the financial obstacle,
they have decided to enhance their coffee roasting process as well as the marketing strategy
in order to earn more money.

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Analysis:
Internal Strengths & Weaknesses:
With the objective to purchase the property near $8.9 million father of Carmelite has
decided to make more profit from their coffee roasting services. Thus, furthermore in this
paper, analysis on their business has been conducted in order to determine the strength and
Weakness.
Internal Strengths –
While analyzing their business procedure of Mystic Monk Coffee several strengths have
been noticed which are mentioned below:
 Due to the usage of excellent quality Arabica coffee beans, their target is to provide a
high-quality product to the customers.
 However, they have a target to purchase a plot of $8.9 million they have offered
coffee with less price in order to maximize its customer engagement.
 Another significant strength of Mystic Monk Coffee is the application of a wide
range of flavor in order to engage more customer which can help to enhance their
business growth (Cadle, Paul and Turner 2014).
 Application of blenders with variety can help to offer several types of coffee with
quality which is also an effective way to engage the customer (Stavrou et al. 2014).
 Along with the coffee the online website also sales Coffee mugs, CDs, T-shirt, and
Gift card as well.
The above strength has driven Mystic Monk Coffee towards its success.
Internal Weakness –
After the conduction of an investigation, several weaknesses of Mystic Monk Coffee
have been observed which are mentioned below:
 One of the most impactful weaknesses of Mystic Monk Coffee is it has the limited
production which can have a direct impact on the business productivity since by
producing only 540 pounds a day cannot help the monks to improve their
productivity.
 Due to the involvement of Monks in the prayer to maintain silence and worship, their
contribution towards coffee production is very less which can have a direct impact on
coffee production.

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 Utilization of old roasting machine is also one of the major drawbacks of Mystic
Monk Coffee since it affects coffee productivity as well as the quality.
 The online selling approach is not efficient to achieve the target for the Mystic Monk
Coffee.
 Less Physical involvement has been noticed in the marketing scenario.
Due to these weaknesses, several limitations have occurred in the business model of the
Mystic Monk Coffee.
External Environment:
In order to analyze the external environment of Mystic Monk Coffee by applying
Porter’s model various aspects of threats and opportunities has been observed which needs to
be considered while improving the business process of Mystic Monk Coffee. Those findings
are mentioned below:
Threats –
While analyzing the external threats of Mystic Monk Coffee by considering the
aspects of Porter’s Model several threat factors. Generally, Porter’s model analysis is
conducted in order to determine the completeness of any business and identifies the weakness
of that business. The findings gathered from the conduction of Porter’s Model analysis are
mentioned below:
Bargaining Power of the Customer – This threat stands for customer’s bargaining power by
which most of the time customers are intended to purchase the high-quality product with the
least payment. Considering the pricing of the Mystic Monk Coffee the chance of the
occurrence of this threat is less.
Bargaining Power of the Supplier – This threat stands for the power of a supplier while
bargaining with a customer. Most of the time suppliers are intended to supply poor quality
product with maximum payment. As mentioned in the case study the monks were always
intended to provide the best quality product to the customers the possibility of the occurrence
of this threat is low.
The threat from existing rivalry – This threat stands for the existing rivalry which can have a
significant impact on the market value of any business. Since the Mystic Monk Coffee is base

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on religious aspect many users can choose other coffee over the Mystic Monk Coffee. Thus,
this threat has a high chance of occurrence.
The threat of new competitor – Since Mystic Monk Coffee has a great impact on their
customers. Thus, it will be hard to feel a threat from the new companies as customers are
highly engaged with the quality of Mystic Monk Coffee.
The threat of substitution – Considering the religious aspect many users can restrict them
from buying this coffee, thus they might replace the choice of coffee from Mystic Monk
Coffee to some another coffee brand. Thus, the occurrence of this threat has a high
possibility.
Opportunity –
After analyzing the business growth and process of Mystic Monk Coffee several
opportunities have been observed which can drive the business process of Mystic Monk
Coffee towards its desired success. The opportunity factors are described below:
 Mystic Monk Coffee business has a unique approach towards the marketing of their
product in the Catholic population of the US. Based on the analysis it has been
noticed that marketing in the US can help to enhance their profit as well as popularity
since the Catholic Population of US has a significant trust towards the Mystic Monk
Coffee and has major support towards the Carmelite monastery mission (Cadle, Paul
and Turner 2014).
 Considering the fact that monks are using best quality coffee beans they have earned
lots of trust from the Catholic population of United States since they are highly
concerned with best quality coffee beans as they care about the social and health
concern. Thus, there is a huge opportunity in the US as there are more than 30 million
coffee customers (Gruber, Kim and Brinckmann 2015).
Followed by these above opportunity factors the Mystic Monk Coffee can leads their
products to a high extent.
SWOT Analysis:
According to the Machmud and Sidharta (2014) considering the scenario of the
Mystic Monk Coffee, currently, there are few attractive qualities present however, according
to several investigations the chance of the occurrence of limitations in the business model

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cannot be avoided. In order to investigate the strength, limitations, future scope and threats
SWOT
Strengths: Weaknesses:
Opportunities: Threats:
analysis have been conducted. The result of the SWOT analysis is described below:
 Usage of excellent quality
Arabica coffee beans.
 Budget friendly price.
 Usage of wide range of flavours
has engaged more coffee
drinker.
 Application of blenders with
variety.
 Along with the coffee the
online website also sales Coffee
mugs, CDs, T-shirt and Gift
card as well.
 One of the most impactful
weakness of Mystic Monk
Coffee is it has the limited
production which can have a
direct impact on the business
productivity.
 Less involvement in the coffee
production due to the devotion
of the monks towards prayers.
 Less effective roasting
machine.
 Based on the analysis it has
been noticed that marketing in
US can help to enhance their
profit since, the Catholic
Population of US has a
significant trust towards the
Mystic Monk Coffee and has
major support towards the
Carmelite monastery mission.
 the catholic population of
United states care highly
concerned with best quality
coffee beans as they care about
the social and health concern.
Thus, there is a huge
opportunity in the US as there
are more than 30 million coffee
customers.
 Bargaining Power of the
Customer (Low).
 Bargaining Power of the
Supplier (Low).
 Threat from existing rivalry
(High).
 Threat of new competitor
(Moderate)
 Threat of substitution (High)

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Business-Level Strategy:
Considering the finding from the SWOT analysis it has been observed that there are
several issues and present in the business field of Mystic Monk Coffee which can affect the
Mission, vision, objectives and business strategies of the Carmelite. Thus, it is essential to
determine the issues related to the above factors. A brief discussion of those factors are
described below:
Mission –
After analyzing the strength, weakness, opportunity, and threats of the Mystic Monk
Coffee it has been observed that these factors have a direct impact on the mission of
Carmelite coffee roasting process. Considering the strength of the Mystic Monk Coffee,
utilization of best quality coffee beans and a promising service has made a good impression
on the Catholic population however, there are several threats and weakness of the
conventional coffee business. Thus, usage of old coffee roasting machines and less effective
employment effects a lot to the mission of Mystic Monk Coffee. In order to build an effective
business strategy, they must adopt the new technology and tactics to enhance their profit,
which will help to purchase the plot and build an efficient Carmelite Monastery.
Vision –
Analyzing the vision of Mystic Monk Coffee with considering the findings of SWOT
analysis. The vision of mystic monk coffee is to make enough money in order to buy a plot of
$8.9 million to build a Carmelite Monastery which will consist of enough space for at least
30 monks, a convent, 2 retreats as well as a Catholic church. Since. Coffee-selling in the only
way gathers the required amount of money the father has decided to increase the productivity
of their coffee business. However, their vision is to develop an effective coffee business in
order to earn enough money their equipment is not capable to produce a large amount of
product as well as their contribution towards the coffee roasting is very less due to their

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devotion towards God. Along with these drawbacks they also have a huge number of trusted
customers who are impressed by the usage of best quality coffee beans and it also has a great
opportunity in the US market since they have a significant interest towards the construction
of the Carmelite monastery.
Goals –
Fundamental objectives of the Catholic monks of Wyoming is the construction of a
Carmelite Monastery which will provide the facility to stay at least 30 monks in the
monastery as well as a convent, 2 retreat center and a Catholic church. In order to initiate the
construction of the monastery, there is a financial obstacle of $8.9 million since the cost of
the desired plot is $8.9 million. Analyzing the information from the SWOT analysis it has
been observed that Mystic Monk Coffee business is the only way to earn money thus the
Carmelite monks have decided to pay more attention towards the coffee business by
improving techniques and machines which will help to enhance their marketing as well as
productivity. Along with the coffee selling services they have also decided to sell coffee
mugs, t-shirts. CDs.
Function Level Strategy –
The function strategy of Mystic Monk Coffee is to target the Catholic population,
especially who are interested in the construction of Carmelite Monastery by selling coffee.
However, for the collection f the required amount of money in order to develop a monastery
they must expand their business into a huge extent. Mystic Monk Coffee is fundamentally
based on the online selling process but in order to explore the business, they have decided to
make it offline by selling the products to the local shops as well as to the church. Promoting
the coffee by stating that they are providing this service in order to gather the money to
develop a monastery the customers were highly influenced which has helped them to earn
more money. Followed the information of SWOT analysis the main target of Mystic Monk

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Coffee is the market of the United States. Since the population of the US has expressed
significant interest in the monastery construction it has helped the monks a lot. Another
functional aspect of Mystic Monk Coffee is to provide high-quality coffee to their customers
which have also helped them to earn customer trust. Along with that in order to increase the
productivity of the coffee business father has decided to exchange the old roasting machine
with a high capacity roasting machine.
Recommendation and Conclusion:
Recommendation –
Considering the objectives and strategies of Mystic Monk Coffee, in order to reach
their objectives, they must adopt new technologies and strategies. As per the idea of father
Denial, the adoption of a new roasting machine will help to increase their productivity a well
as it will offer variety in coffee blending and roasting in only one condition if the monks
contribute enough time to in the work process and work hours. In order to purchase the plot
of $8.9 million and construct a Carmelite monastery, the monks must utilize their maximum
time to the production of coffee rather than devoting themselves in the prayer and worship.
The improvement in the packaging and the roasting process can also help to enhance their
popularity in the US market as well an in the Catholic population. Along with the services of
online and offline coffee selling services the monks are recommended to advertise their
product by physically promoting to the church to church as well as to the local store. Since
the Mystic Monk Coffee spends about $128.820 in a year in the production, they must look
into the factors in which ration the profit amount should be increased. Improvement of the
business strategies also has a significant impact on the enhancement of the Mystic Monk
Coffee business.
Followed by the above discussion the major recommendations are mentioned below:

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 High capacity coffee roaster.
 Effective coffee blender.
 Significant involvement of the monks towards the business process.
 Adoption of more advanced equipment.
 Enhancement of the marketing strategy.
 Packaging must be improved.
 The marketing should be expanded to a high extent.
 Improvement of customer engagement except for the Catholic population.
These are the recommendations which need to be followed by the Monks of Wyoming in
order to achieve their target.
Conclusion –
It has been observed from the case study of Mystic Monk Coffee, that the objective of
the Wyoming monks is to build Carmelite Monastery in order to provide at least 30 monks to
stay there and it will also consist of 2 retreats, a convent as well as a church from the business
of Mystic Monk Coffee. This report has included a successful investigation on the business
strategies of Mystic Monk Coffee by which the Strength, weakness, threat, and opportunities
have been observed. The study has a detailed analysis on the aspects of SWOT analysis by
which it has been observed that there one of the major strengths is the usage of the best
quality product and the trust they have built by selling the premium quality product. Along
with the strength, there are several limitations has been observed which must be mitigated
with the highest priority. The recommendations to mitigate those limitations are also
successfully established in this report which includes the use of advanced technology in order
to increase their productivity, the variety of roaster and blenders will help to provide the
user's variety of coffee to the coffee lovers of US population. Along with that, the
improvement of the marketing strategies must be incorporated in the field of coffee business.

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In order to improve the productivity and profit of the Mystic Monk Coffee, it is also
recommended that the involvement of the monks in the business process must be increased
with the highest priority. Lastly, it can be concluded that a detail view of this study will
surely help to understand the history behind the Carmelite monk’s coffee business, how it has
come to the US market and its business strategies. Since it has covered a detail view of the
history and innovation of Mystic Monk Coffee as well as it also consists of a SWOT analysis
based on the business growth and strategies. Lastly, followed by the information gathered
from the SWOT analysis, effective solutions are also recommended in order to resolve that
problem.

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