Mystic Monk Case Assignment Questions GBA 490 PDF

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Questions for the Mystic Monk Coffee reading. This consists of only the case questions, not a full written case....

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GBA 490: Case Discussion 1 – Mystic Monk Coffee ASSIGNMENT QUESTIONS Question 1:  Yes, Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming. His future direction points to expansion of the monastery and an increase in the number of monks in the fellowship. His vision for the future monastery consists of many acres of land, enough housing for a capacity of 30 monks, and other accommodations; a church, a convent for nuns, a community center, and a hermitage.  Father Daniel Mary does have a vision for the Mystic Monk Coffee but it is not a clear and concise plan. Although, Father Mary speaks of creating an “execution plan” it is not included in the reading passage. One clear next step that could possibly be taken, is to purchase a new roaster in order to produce more pounds of coffee in less amount of time.  I believe the overall goal of the Carmelite Monks of Wyoming is to serve, pray, and reflect. If we are referring to the mission regarding the expansion of the Carmelite Monks of Wyoming, their mission currently is to expand their monastery in hopes of also expanding their fellowship. Obstacles do lie ahead for the Monks when it comes to the monastery expansion, they must find a way to raise enough money to buy the land they desire for their new cloister. Father Daniel Mary believes this money could be earned through their Mystic Monk Coffee business. Question 2:  Father Daniel Mary has set some definite objectives and performance targets to achieve his vision of expansion. His objective is to increase the amount of coffee the monks produce, in order to increase sales and raise money for their new expansion. It seems that he plans to do this by purchasing a new roaster, that can produce more pounds of coffee per hour but it is not understood if this is a fact or just an idea. As for performance targets, Father Mary lacks a clear and concise target to reach. This could be harmful to his plan because he must have understood expectations outlined and should verbalize those expectations to his workers to be successful. Questions 3:  To obtain his vision, Father Prior strategizes ways he can generate more profit from the monastery`s Mystic Monk Coffee. Father Prior`s plan involves broadening his customer base by expanding the operations to offer wholesale sales to local coffee shops or churches. His plan also involves continuing to produce and supply premium specialty coffee by using Arabica beans, a type of high-quality coffee bean. Mystic Monk Coffee also offers a variety of flavors, which could also be beneficial in widening their fan base.

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Mystic Monk Coffee has a special competitive advantage that can make their product relatable and favorable to a wide range of people. With Monks being tied so closely into the catholic religion we could imagine it would be rather easy to gain support through the Catholic population. Another advantage is the fact the money from the sale will be used to support the monasarary. People love supporting charities but don’t enjoy doing the actual work to support that charity, so consumers love when they can easily help a charity just through purchasing a product.

Question 4:  I believe Mystic Monk Coffee`s strategy could/is a money maker. Currently, they are generating an 11% profit which is an extreme disadvantage to a company and they should consider cutting down expenses.  MMC`s business model is an eCommerce revenue model, they sell and supply their product involving an internet process. Then, they will ship their product to a customer via a distributor. MMC does have an advantage in the fact, they are delivering and bringing their product into customer`s homes. Rather than a person running out to grab coffee and spend money doing so, they can enjoy their morning coffee in the comfort of their own home.  From my assessment, it seems MMC has an adequate customer value proposition.  Its resourcing and value to customers could benefit greatly from acquiring that new coffee roaster while also improving its process and execution of distribution to customers. Since they have recently expanded their services to offer wholesale to select businesses, MMC needs to ensure they have an organized system to keep up with the new demand.  Profit formula: ($678,000 sales – $603,420 expenses) / $678,000 sales = 11% profit  Simple Financial analysis: Avg. Sales per month = 56,500 x 12 months = 678,000 avg sales per year Revenue: - Sales: 678,000 Expenses: - ShareASale (estimation): - COGS: 203,400 - Shipping and distribution: 128,820 - Broker fees: 20,340 - Operating expenses: 250,860 Total expenses: 603,420 Net profit: 74,580

Question 5:  I believe the strategy does qualify as a winning strategy. I believe this because, it is adamant that MMC endorses and believes in their product. They also have a team that cares about quality of the product they are putting out to their consumer. Their strategy is to increase sales and help improve their monasarary but their strategy also involves providing a wholesome product that was crafted with time and care. This is a great competitive advantage they hold because many consumers are shying away from large corporations and turning to smaller “Ma and Pop” types of businesses. Also, Belonging to a large religious affiliation also gives MMC an advantage in the market. Question 6:  As far as operations of the product goes, I would advise Father Daniel Mary to have more than one Monk working on making the products, since the Monks only have so much time to dedicate to production he should acquire more workers if he wants to increase production in a timely manner.  Some long term changes I would suggest is to explore other businesses they can sell their products to, possibly look into getting a grocery store to sell MMC`s products.  Regarding strategy, I would recommend Father Daniel Mary to find different ways to advertise and market their products. Their current practice does not seem efficient. It could be beneficial to look to a marketing firm to develop a simple and distinct marketing strategy.  My recommendation to Father Daniel Mary regarding executing the entire strategy would be to outline a clear and concise business plan and seek out a trusted business professional that could help aid him in making the correct financial decisions....