Strategic Management of Mystic Monk Coffee

STRATEGIC
MANAGEMENT

TABLE OF CONTENT
Introduction.................................................................................................................... 3
Introductory................................................................................................................ 3
History, development and growth...................................................................................... 3
Analysis........................................................................................................................ 4
Internal strengths and weaknesses..................................................................................... 4
External environment..................................................................................................... 5
SWOT Analysis........................................................................................................... 7
Business and functional level strategies..............................................................................9
Recommendations.......................................................................................................... 10
Conclusion................................................................................................................... 11
References................................................................................................................... 12

Introduction
Introductory
The present topic will be focusing upon the strategic development, management and
operations of a coffee production brand the “Mystic Monk” founded in the year 2007. This study
will include internal and external analysis of the company within its analysis part and will also
highlight the importance of different business and functional level strategies for Mystic Monk.
This report will present the SWOT analysis of the company with an in depth discussion to its
threats and opportunities through Porter’s Five Forces model.
History, development and growth
The order of Carmelites has its origin on Mount Carmel. Carmelites are the reverent and spiritual
group Roman Catholic formed by people heading towards holy places and pilgrims. They prefer
to have a life of isolation and peace at Mt. Carmel prior to turning into a renowned order of the
Church. The Carmelite religious community of Wyoming was founded by Father Daniel Mary.
The order of Mount Carmel of Wyoming was allowed to leave the monastery for therapeutic
needs and in case of death of near ones. A total of 13 preaches residing near the Rocky
Mountains in small house and dedicated in worship of Wyoming Carmelite monastery.
Subsequently reaching in Wyoming, Father Daniel Mary decided to acquire a considerable land
area, a new Mount Carmel. The Carmelites are known for selling gourmet coffee under the name
of Mystic Monk Coffee. Father Daniel Mary has a clear vision of expanding the monastery by
buying a 500 acre ranch. But could not afford the required capitals or price money to buy that
Ranch. Hence, they decided to overcome this issue by increasing their funding options and tend
to sell more coffee products.
At present, the roasting business uses high standardized quality, fair trade Arabica and organic
Arabic coffee beans. The most popular flavors were Cowboy Blend, Royal Rum Pecan and
Mystical Chants of Carmel. These all varieties were sold via the monastery’s website. Their main
targets were the U.S Catholic consumers who drank coffee and wished to support monastery.
The monastery has earned $75 thousand dollars with the development of Mystic Monk Coffee.
The Carmelite monks have $250,000 in donation and they earn $75,000 per year through Mystic
Monk Coffee. MMC’s net profit is 11% within the industry. Majority of sales are made through
online via MMC’s website and telephone orders accepted. The mission of Carmelites is to live a

peaceful life and making Father Daniel Mary’s vision achieved. Donation was received by the
monks that had helped them to increase the level of production and operations.
Analysis
Internal strengths and weaknesses
Low and poor sustainability as compared to the other competitors is one of the most considerable
weaknesses of Mystic Monk. Therefore, there is a need to enhancing its current business model
to gain an ample and desired amount of competitive advantage.
Strengths
The peak point of their strengths lies on the fact that they use highly standard and grade fair trade
coffee beans. Their production includes whole-shell coffee with caffeine and caffeine free coffee
with variant delightful flavors. Such wide variety of coffee is capable to fulfill the demands of
every coffee lover.
They have number of coffee products in different tempting flavors which is quite appealing and
attracts broad range of coffee preferences. With the provision of high quality and diversified
coffee products, Mystic Monk also inhibited a strength of skilled founders which has made its
operations ran smoothly.
More than 69 million US residents were catholic member and the Mystic Monk company target
the same segment of American catholic population who preferred coffee and wanted to
contribute to the monastery’s mission (Bradley and Botchway, 2018). Mystic Monk Coffee has
its unique approach towards coffee’s marketing in which to appeal more catholic towards it’s
“use their catholic coffee dollar for Christ and his catholic church” was publish on MMC’s
website so as to increase their productivity.
Its marketing function is carried out through posting advertisements on its official website.
Majority of its sales is also conducted through its website and telephone orders are also accepted
but on special requirements only (Kim and Lee, 2017). There are many other non- catholic
coffee drinkers but are health and social conscious and approximately thirty million people in
United States who prefer coffee so the coffee businesses can easily target the customers there.