Mystic Monk Coffee

1250 Words Feb 1st, 2013 5 Pages
Introduction Father Daniel Mary, a monk in Clarke, Wyoming, has a vision to move and ultimately expand the Carmelite brotherhood to a 496 acre monastery (Irma Lake Ranch). Here, he could accommodate new men into the brotherhood, and build his business establishment. For the past year Father Mary and his brotherhood have been purchasing Arabica coffee beans from Seattle, to distribute under the name Mystic Monk Coffee. The problem that arises is the capacity that the current monastery can produce (540 lbs/day). There are also many expenses the monks face while currently operating. If the monks could move to Irma Lake Ranch, many problems could be resolved; unfortunately, there are financial barriers to purchasing the ranch. An execution …show more content…
The ranch would require more work to be able to keep up with lease payments and general maintenance costs of the land and the four addition building that Father Mary would like to build.
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In a business aspect, purchasing the Irma Lake Ranch would be the best option for financial growth. Here they could grow an unlimited capacity of coffee beans and completely eliminate inbound shipping costs and broker fees, and could also reduce the cost of sales down from 30% of revenues. If the monks were able to put equal dedication to the coffee industry as they do to their prayer, then Mystic Monk Coffee should be a success.
Action Plan Before anything else, Father Mary would have to approach the current owners of Irma Lake Ranch and provide an offer to lease-to-own half the property if they were willing to donate the other half. Donating half the land would be a huge loss for the current owners, so an agreement could be set up where the current owners of the ranch would hold shares in the company. This is a risky project to undertake for the ranch owners, but the payoff could be huge. Once the monks moved to the ranch, they could start developing the land into suitable crop fields for the coffee beans. Here they can master their technique and get the highest yield possible. Production possibilities could be unlimited which means customers could be

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