Mystic Monk Coffee Case Study: A Detailed Overview

Question

Task: Provide a detailed account of various aspects considered while devising and executing the strategies in an organization. Consider the Mystic Monk Coffee case study while addressing this task.

Answer

Introduction
A detailed analysis of the Mystic Monk Coffee case study is conducted in this report. In the successive analysis, the detailed description of the weakness and strength of the Mystic Monk Coffee Company has been done. The use of market analyzing tools like PESTLE would reveal the present condition of the external environment of the company to the readers. The report would be useful to the readers in understanding various strategies implemented by Mystic Monk Coffee at the corporate level for its business expansion. A special effort has been given to reveal the marketing strategies of Mystic Monk Coffee, which could be further reassured by referring to the SWOT analysis in the later section of this report. Various changes adopted by the company in implementing the strategies and the consecutive alterations in the adopted leadership styles will clear the picture of various stances taken by the company before the readers. It is recommended to stick throughout the report so that you could garner an idea of the driving demand phenomenon that occurred in the contemporary coffee industry.

Background
It was in 2007 that Father Daniel Mary had established the company of Mystic Monk Coffee in the Carmelite order of monks Clark, Wyoming. The start of the company was a very humble one since only limited customers visited it. Though the specific taste of the products delivered by its outlets has helped it in developing a larger and consistent customer base (Ushchapovska, 2020). The current customer statistics that is around 85 % are the recurring and constant customers of the company reveals that the products of Mystic Monk Coffee are well-liked by the users. Rather than conducting a vast advertisement program, it is through the recommendation of customers that the company has acquired a large customer base. The company has even developed an online portal (www.mysticmonkcoffee.com) to supply its roasted coffee all over the world. The initial target of the company was the catholic demography of America since they highly preferred coffee in their beverage consumption. The turnover for the company in its first year of operation in the USA was around 57000 USD every month. From the overall turnover, its revenue constituted 30 %, the broker reached up to 3 %, and the shipping charges amounted up to 19 %. After an overall deduction, the amount of profit reached up to 11 % of the overall revenue.

Potentials and Vulnerabilities of the Mystic Monk Coffee Case Study
The Mystic Monk Coffee has its own particular potentials and vulnerabilities in the present global scenario. The major stronghold of the company is that its products are available to the customers at a very reasonable price. Every 12-ounce bag just amounts up to 10 USD, and the orders above 25 USD are delivered free to the customers. The high clarity of the management regarding the targeted customers brings a high level of specification to this brand. The approach has enabled the company to adopt a no taxation policy. Thus, the growth of the company could be ensured to a curtained level.

Though the company is performing well in the global market, certain processes followed in its internal environment are posing vulnerabilities to it (Gamble et al., 2014). The confined environment in the company along with the implementation of regular marketing strategy and following limited working hours are posing several challenges to the company. The company still needs to explore further to expand its customer base by intensifying its marketing campaigns.

SWOT analysis of Mystic Monk Coffee case study
Strength
The major strength of the company is that it has developed a reputation for being reasonably priced brands among its customer base. The average price charged by the company on a 12-ounce bag is just 10 USD, and shipping is made free for the orders which are above 25 USD. The market share of the company is highly specific and controlled by them. The active participation of the company’s employees has boosted the pace towards achieving a broader group of customers. The ultimate aim of the company is to attract coffee lovers from all over the world. 

Weakness
The production rate of the company is very restricted, and most of the coffee drinking customer communities are unaware of this brand. Following management approaches, along with the limited working hours for employees, have generated various vulnerabilities in the interior environment of the company. Mystic Monk Coffee company should focus on its capital and market expansion policies to counter the emerging challenges (Azuonye, 2010).
Opportunities
There is an overall decline in the prices of coffee products at the global level. Hence the company could expand its operations into other related markets also. Similar to the way that the company has acquired a large customer base in the Catholic community of the US population, unique strategies should be adopted towards other demographic communities also.

Threats
The new global scenario has generated several threats for the Mystic Monk Coffee company. Because of the company’s background, the products of it are still not used by a large division of the Christian population. The emergence of new entrants with similar quality but a lower price is posing a large threat to the sales of Mystic Monk Coffee products.

PESTLE analysis of Mystic Monk Coffee Case Study
The below-described PESTLE analysis would mention how various characteristics related to the Political, Economic, Social, Technological, Legal, and Environmental fields are affecting the business of Mystic Monk Coffee.

Political
The various policies made by different local governments had a lasting influence over the business of Mystic Monk Coffee. The various trade policies and foreign policies drafted by the countries involved in the export and import of the coffee products could have very high potential in affecting the global business of the company. The company should refer to the political policies of different countries before entering into their local coffee market.

Economic
The economic statistics of a particular nation would be of very high significance for any company. The company should consider the basic economic parameters like per capita income, spending trends, savings, etc. The pricing strategy of the Mystic Monk Coffee Company is highly reliable on the activities in the exchange rate and the new developments in the global market (Murthy & Naidu, 2012). The higher sales for a particular company would significantly make a negative impact on the sales of other competitive companies. The rate of export-import in between the countries and the demand pull in exchange rates has the potential to make an impact on the company's business. The management of the company should also understand various spending behaviour in different communities so that they could be utilized for future marketing campaigns.

Sociological
The new health-conscious mentality of the global population is restricting them from consuming beverages with high caffeine content. The new studies that the high consumption of caffeine in humans could lead to biological illnesses like sleeping disorders and migraines. The new revelation regarding the negative after-effects of consuming the coffee is deterring the consumption of Mystic Monk Coffee. Before entering into a particular market, the company should understand the particular cultures existing in there and various preferences followed by them.

Technological
The assimilation of modern technologies could bring a high level of productivity to the Mystic Monk Coffee company. The current situation of the company is a bit underwhelming because of the lack of productivity because of the limited working hours of employees. The inclusion of various new technologies and machinery would fill this void of incompetency. Developing various technologies would give open a plethora of opportunities before the company for its expansion. The better brewing techniques would increase the quality of products along with intensifying the pace of production.

Legal
The companies have to face various export-import policies in foreign countries that would create a significant impact on the business. Whenever the company decides to expand its business to other countries, the local laws should be thoroughly understood by its management so that any of its activities would not be deemed as illegal one by the local authority. The major laws that the company should consider those regarding bribery and minimum wages. The laws coming under this section often propose difficulties to new entrants (Silva et al., 1998).

Environmental
Various natural incidents like droughts, earthquakes, pandemic, rainfall, lack in harvest, etc. would create a direct and imminent impact on the business of the company in a direct and imminent manner. The weather, in particular, would also affect the sales of Mystic Monk Coffee products since coffee is profusely consumed in the colder climate.

Strategies implemented at the corporate level in Mystic Monk Coffee Case study.
The same strategy of selling an estimated 130 pounds of coffee product every hour by Father Mary is still implied by the company. To arrive at maximum profit, the company has targeted the Catholic communities exclusively in the USA. By adopting this strategy, the company has to increase its coffee product production from 550 pounds per hour to 795 pounds per hour that the increased demand could be sufficient. The company had incurred about 11 % of the profit when it sold 550 pounds that were significantly hiked when the production increased to 795 pounds per hour (Reinecke et al., 2012).
It is based on the customer value proposition that the Business model of Mystic Monk Coffee Case study majorly depends upon. The higher level of customer satisfaction has been achieved by the company by implying the approach of the customer value proposition in its business model. It is this approach that encourages the management of the company to provide the customers with quality products at a very reasonable price. To suffice the needs of various customers, the company has also introduced coffee products with different flavours like Arabica organic coffee beans. The customers are entailed with free shipping if they buy more than two bags. These many strategies have justified the ideologies of the customer value proposition in the Mystic Monk Coffee Case study. Since the customer base of the Mystic Monk Coffee company is situated at a niche level of the market, the strategies of the company could obviously be stated as successful and revenue-generating one.

The owner of the company, Father Mary, has decided to buy an automatic and advanced roaster that would cost up to 35000 USD. The inclusion of this new technology in the business model of Mystic Monk Coffee Case study would accelerate the rate of production of coffee products. However, the movie could not be termed as a cutting edge or winning strategy since the same technology is owned by its competitors. It is the reputation of providing high-quality products at a very reasonable price that is sustaining its large customer base. These characteristics and positions are very hard for its competitors to replicate and could be considered a winning strategy in the Mystic Monk Coffee case study. It is the approach taken by the management of Mystic Monk Coffee itself which is hampering its growth in the global market (Janissen & Huynh, 2018). Without conducting a robust advertising and marketing campaign, it would be very hard for the Mystic Monk Coffee company to establish itself as a global brand. Though the company retains very talented and loyal customers, the lack of opportunities is drawing back the performance of Mystic Monk Coffee Company. The company should move on with its strategy of providing high-quality products at a reasonable price since it has earned them a unique reputation in the market. The propagation of the brand should be encouraged throughout the customers and devising out new coffee culture would eventually increase the performance of the company.

The business strategy adopted by Mystic Monk Coffee Company
In its business system, the Mystic Monk Coffee company has installed the strategy of differentiation. As per the ideology of the differentiation strategy, it is mandated that the product of the company should be different and have a unique identity when compared to other similar products. The aspects like the magnitude of the market, type of industry, depth of customer base, etc. play a crucial role while drafting a differentiation strategy for a company. The higher control and manipulation vary the prices of the product could be gained by practising the differentiation strategy in the business process of the company (Linton, 2005). Another advantage of implementing the differentiation strategy is acquiring a higher level of customer satisfaction and thereby developing loyalty among the customers. In the instance of a sensitive target segment, the cope and relevance of this strategy become very prominent. However, entrepreneurs should be aware of the aggressive approach of competitors while implying this business strategy.

The unique flavour and the taste offered by the company in their coffee products are constantly attracting a significant magnitude of consumers to its customer base. A very aesthetic and surreal experience is ensured by the company outlets to its customers. It is by recognizing and analyzing the requirement of the customers that the strategies are devised in the Mystic Monk Coffee case study (Rahardjo et al., 2019). The company has to devise some approaches and strategies so that the crucial clients and customers since each individual has a customized set of preferences for them. If the company focuses on addressing every person's preference, it will emerge as one of the global coffee brands. The company management has understood the significance of satisfying the expectation of customers.

The significance of recognizing customer expectation in gaining a competitive advantage
In the aspect of identifying various needs of the customers, the Mystic Monk Company has proven its excellence. The focus of the company has always been on providing premium Arabica beans to its customers which would satisfy a large group of customers with a different palate. Though the effectiveness of the customer satisfaction strategies implemented by the company is much weaker when compared to the advancements made by its customers. The operative market of the company is huge and is estimated to be of the magnitude of 69 million potential customers. Hence the company could make a large profit by implying some aggressive strategies which focus on customer satisfaction. The company needs to develop a higher level of brand loyalty among its customers to sustain a higher level of turnover throughout the financial year (Thompson et al., 2013). The company could only sustain itself in this extremely competitive market by focusing on satisfying the demands of the customers. As a part of attracting the community of coffee lovers, the company has, for a long time, targeted the catholic demography of the USA. Similarly, other communities should also be focused on the management of Mystic Monk Coffee. 

The parameters of corporate social responsibility followed by Mystic Monk Coffee company
The parameters of environment conservation, community reservation, and ethical sourcing constitute to be the major aspects of the corporate social responsibility of Mystic Monk Coffee Case Study. The company has created various non-profit, local community stores that have focused highly on providing higher customer satisfaction so that the brand would become an integral part of their daily life. The parameter of ethical sourcing would provide clarity over the manner in which Mystic Monk Coffee would buy the required item. By adopting it, the company could bring positive changes in its approach towards the working community (Markoulakis, 2012). If considered from the aspect of business operation, corporate social responsibility is perceived as synonymous with the concept of management. 

Control systems and relevant framework implied in the Mystic Monk Coffee Case Study.
The framework implied in the Mystic Monk Coffee Case Study could be classified on the parameters of team, geography, official functions, and products. The structure followed in the business operation is structured on the parameter of the group. The units included in the frameworks are the marketing department, the Human resource department, the finance department, etc. The whole hierarchical system in the organization is considered under this structure. It is the senior vice president of the organization who constitutes to be the geographical unit. It is by following this particular framework that the managing department of the Mystic Monk Coffee Case study report to the heads of business process head and geographical team leader. It is at the structuring phase of the organization where the classification is done on the basis of products and their varieties (Aknesia et al., 2015). By the implication of this format, the division in the product line is conducted. All other subtle classifications are done by various teams involved in the company. All the goods and services required for the customers are prepared by the various team units in the organization.

The impact made by the driving demand on the coffee business
The driving demand makes a strong impact on the efficiency of business consumers and business to business processes through various methods. They are discussed in the below section of this article.

Standard Living
It is a common trend among the people living in the higher society to consume premium coffee that matches their standard of living. Coffee is often consumed by people to display their reputation rather than having an interest in it.

Knowledge over the targeted demography
The influence caused by the population is often termed as driving demand which has a very high potential to influence the business of coffee. The aspect is influenced by a lot of tangible factors like per capita income, average age group, gender, culture, etc. (Waxman, 2006). These are some of the crucial aspects that the management team should explore to further expand the business of coffee.

Change in climate
Though the factor of climate change is ignored by most enterprises, it is one of the most crucial demand drivers in the field of the coffee business. If the season of a particular country is comparatively colder, there would be a higher demand for the hotter beverage that would conclusively lead to the higher sales of coffee (Jang et al., 2015).
Availability of similar substitutes
 If there are better and cheaper substitutes present for the product, it would drastically affect the business. Let us consider the instance when the tea becomes expensive, and the consumers should surely move their preference to cheaper and more tasty coffee (Yu & Fang, 2009.
Recommendations
The management team of the Mystic Monk Coffee case study should introduce some innovative products to bring a larger volume of consumers towards it. The company should shift its focus on providing more quality and premium products to its customers so that it would get easily acceptable. While introducing new products in the coffee market, the management of the company should keep in mind the factors like culture and lifestyle followed by the local population, the pattern of spending, per capita income, lifestyle, etc. The company could also try the sales of products that are not derived from coffee. Gaining a higher level of loyalty from the customers should be the primary aim of the company.

Though rapid changes are not possible, the higher authorities should manage the business process in a gradual manner so that it could cope up with the purchasing power of the customer base. Adapting to the new technologies of e-commerce would tremendously help the expansion of the coffee business (Herlyana, 2014). The customized online portals should be established by the company so that a strong link could be maintained between the suppliers, customers, employees, and the management department. To make a longer impact on the business of the company, diversification strategies should be implemented. The higher rate of intervention and interaction in the local cultural events will increase the acceptance of the brand among the local public.

By this Mystic Monk Coffee Case Study, we hereby recommend the company management to give out the products to the consumers at a steady and cheap price. The use of various marketing campaigns through social websites should be done to permeate within the lifestyle of the younger generation. The approach of preparing new strategies to enhance the competitive advantage of the company should be prepared by the management on a periodic basis. The company should adapt itself to various modern technologies so that the intended targets could be achieved at a faster pace (Jeon et al., 2016). The company could only sustain in the market if it enhances its manufacturing capacity to deliver 550 pounds of coffee products a day. It could only be achieved by installing modern coffee roasting machinery in the production units.

Conclusion
It has been revealed by this Mystic Monk Coffee Case Study that the company has created its own reputation and brand value among the global community. The brand has the potential to dominate the global coffee market, though it lacks behind because of its regressive approach in identifying the opportunities. We have come to understand that by this Mystic Monk Coffee Case Study that the differentiation strategy was one of the major approaches implied by the management team of the company. The differentiation approach has enabled the company to present various customized and unique products before the customers. We have majorly recommended in this Mystic Monk Coffee Case Study that the company should focus on presenting new products with unique and fresh flavours so that their business could be expanded to a higher level.

References
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