Canggih Resthureditya Reza

Eksekutif B 26 C
Strategic Managemnet
Mystic Monks Coffee
Father Daniel Marys vision of expanding the monastery in Clark, Wyoming of 13 Carmelite
monks in a small home into a 500-acre monastery that costs $8.9 million is a big challenge
considering limited resources. Father Daniel Mary needs to find ways of raising enough
money for them to be able to realize their goal of expansion.
Carmelites is a religious order of the Catholic Church that was formed by men who traveled
to Holy Land as pilgrims and crusaders and had chosen to remain near Jerusalem to seek
God. The size of Carmelite Order varied widely throughout the centuries with its peak in
1600 and stood at approximately 2,200 friars living in all inhabitant continents at the
beginning of 21st century.
The Wyoming Carmelite monastery has founded by Father Daniel Mary who lived as
Carmelite hermit in Minnesota before moving to Clark, Wyoming to establish the new
monastery.
Father Daniel Mary had a vision. He would like to transform his 13 monks living in a small
house into a 30 monks living in a 500-acre monastery, with a Gothic church, a convent for
Carmelite nuns, and a retreat center. He discovered a ranch that would make a perfect place
for his vision which costs $8.9 million that is far off of the monks budget. The Carmelites
had received $250,000 from donors and earned $75,000 from its Mystic Monk coffeeroasting operation.
Mystic Monk Coffee, the primary source of gaining money, is composed of high-quality fair
trade Arabica and fair trade/organic Arabica beans that the monks themselves produced. 150
million consumers in America drinks coffee89% of those prefer brewing it themselves on
their homeswhile 30 million of American coffee drinkers are willing to pay $7 to $10 for a
premium-quality coffee.
With regards to human resource, each Wyoming Carmelite monks are assigned to their field
of specialty while their production is limited due their activity as monks. In order for them to

expand their production of coffee, they must purchase a larger roaster that costs $35,000 with
roasting capacity of 130 pound of coffee beans per hour.
Majority of Mystic Monk Coffees sale comes from their website and telephone orders due to
being promoted primarily by word of mouth among loyal customers in Catholic parishes
across the United States.
At the conclusion of Mystic Monk Coffees first year in operation, its sales of coffee and
coffee accessories average about 56,500 per month. Its cost of sales averaged 30% of
revenues, inbound shipping cost accounted for 19% of revenues, and broker fees were 3% of
revenuesfor total cost of goods sold 52%. Operating expenses such as utilities, supplies,
telephone, and website maintenance averaged 37% of revenues. Thus, Mystic Monks net
profit margin averaged 11% of revenues.