Mystic Monks Coffee Memo

Betty Wilson’s venture of opening a Christian Coffee House in Belmont, NC, presents her with abundant opportunities in selecting a business form. She is considering the following types of entities: 1) franchise, 2) sole proprietorship, 3) partnership of some sort, 4) corporation of some sort, 5) LLC, or 6) even as a joint venture. We will briefly explore each business option and give Betty concise recommendations as to what business form to pursue as well as what business partners to engage.

Since Starbucks entered the coffee retail business, the company has made many trade-off business decisions. The first major trade-off was made when Howard Schultz wanted to acquire present day Starbucks from three entrepreneurs Baldwin, Siegel and Bowker. Therefore, Schultz prior to the acquisition made the trade-off to open his own coffee bar in 1986 instead of staying at Starbucks as the manager of retail sales and marketing. A bold feat, Schultz was able to replicate success and was offered to buy Starbucks for $4 million. At the time of the acquisition, many investors, including the former Starbucks owners, would not expect that the American consumer would pay a premium for coffee products. Schultz, after calculating the opportunity cost, was convinced that Starbucks would become a large coffee chain not only in the United States but internationally too. Reflecting this approach, Schultz’s trade-off worked. Starbucks, according to our book has revenue exceeding $13 billion and nearly 200,000 employees. The company has also expanded to 40 countries with 17,000 stores (Hill et al., 2015).

* The monks are dedicated to making the coffee. Everyone at the company has the same goal and this is to further the revenue of the company in hopes of expanding to better serve God.

Starbucks has a long-standing effort in ethical conduct and global responsibility. One of the major efforts is sourcing ethically grown coffee. For

A coffee business targeting the Christian market segment does not need such complex organizations because of its functional simplicity and scope. In other words, only large-scale organizations can opt for these choices.

Mystic Monk Coffee should expand its target market. It can do this by targeting all coffee drinkers in the U.S. who value price and quality. Most people enjoy a good cup of inexpensive coffee. The emphasis should not be on the support of the monastery’s mission but should focus on great coffee for a reasonable price. By doing this, the Monks would increase sales and eventually be able to purchase a larger property. Selling the coffee to all drinkers will grow the company faster than what they visualized for the

While the coffee bar market has obviously enjoyed strong growth some organizations can boast the financial performance of Caffè Nero. We believe that the group’s achievement base on main factors.

As Father Daniel Mary, the Prior of the Carmelite Order of monks in Clark, Wyoming, walked to chapel to preside over Mass, he noticed the sun glistening across the four-inch snowfall from the previous evening. Snow in June was not unheard of in Wyoming, but the late 2009 snowfall and the bright glow of the rising sun made him cons ider the opposing forces accompanying change and how he might best prepare his monastery to achieve his vision of creating a new Mount Carmel in the Rocky Mountains. His vision of transforming the small brotherhood of 13 monks living in a small home used as makeshift rectory

1. What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming?

One part is to purchase $35,000 for a larger roaster. Let’s assume that monks worked eight hours a day, and then this new roaster can help them to raise production by 500 pounds per day (130*8-540=500). The other part is to put wholesale sales churches and local coffee shops. MMC’s strategy is a money-maker because it has a competitive advantage. It focuses on the niche market – the U.S. Catholic population who drinks coffee and wishes to support the monastery’s mission. In the U.S., this population is over 69 million. Consequently, this business has a good potential to provide profit.

This paper will explore the science of Managerial Economics, the cost effective management of scarce resources, through an exploration of the Starbucks Company. This will include an assessment of relevant market forces, market structure and the economic theories that guide business decisions for this company.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Shania Jackson is interested in starting a Christian coffeehouse near Denver, Colorado. A few family members and an acquaintance, both believers and nonbelievers, have expressed interest in investing and become a part of her business. She has researched franchise opportunities with various stipulations as a method for starting her business. She is also considering naming her business “The Gathering Place”.

Starbucks is one of the top leading coffee sellers in the world. With more than 17,000 stores in more than 55 countries, Starbucks has created the ultimate brand and coffee shop (Ferrell, Fraedrich, & Ferrell, 2015). Building Starbuck’s name was a process performed by the founder Howard Shultz that focused on quality ethics and good coffee. One of the main aspects of Starbuck’s culture is its mission. Starbucks brand has been ranked number 16 in the Fortune’s one hundred companies to work for because of its honorable, ethical back-round (Lemus, von Feigenblatt, Orta, & Rivero, 2015). However, like all businesses, Starbucks has encountered some ethical issues along the way of their success.

Coffee shop is the famous business in Cochin. Coffee or Tea bar is a daily requirement for the local coffee lovers, and it is a place to dream big things in life and to discuss among friends and relatives and just a comfortable place to meet your loved ones or to read a book, all alone. With the growing demand for high-quality tea or coffee and great service, The Melody Coffee shop will mainly focus on the institute of management studies in Cochin and other private institutes also. The kind of culture will offer its customers the best prepared coffee/tea in the area that will be served with a muffin and a sweet, moreover we will provide some free books that many more old customers can read and enjoy their visit. The shop will operate a 70 square foot coffee bar near to the entrance of the institute of management studies in the building. The identified place can be obtained for lease for 8 months and it is possible to get a nearly extension in the upcoming months and years. The start-up funding which is available with Mr. Hemant is INR 80,000/- and it is surely that the remaining amount of Rs 50000 will be incurred through some commercial loans from the Bank of Baroda. The business is expected to gain more and more profit that will be more than 150000 per year. Melody Coffee shop will try to maintain a high gross profit margin and reasonable operating expenses throughout the year.