Solved by verified expert:Read the attached case study and develop a vision and mission statement for Mystic Monk Coffee. When crafting your statements be sure to follow the guidelines outlined in the PowerPoint presentation in the week 3 folder.
hosp4060_mystic_monk_coffee_vision_and_mission.pdf
hosp4060_strategic_vision_and_mission__sv_.pptx
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Mystic Monk Coffee
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 snowfall and the bright glow of the
rising sun made him consider 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 into
a 500-acre monastery that would include accommodations for 30 monks, a Gothic church, a convent for
Carmelite nuns, a retreat center for lay visitors, and a hermitage presented a formidable challenge.
However, as a former high school football player, boxer, bull rider, and man of great faith, Father Prior
Daniel Mary was unaccustomed to shrinking from a challenge.
Father Prior had identified a nearby ranch for sale that met the requirements of his vision perfectly, but
its current listing price of $8.9 million presented a financial obstacle to creating a place of prayer,
worship, and solitude in the Rockies. The Carmelites had received a $250,000 donation that could be
used toward the purchase, and the monastery had earned nearly $75,000 during the first year of its
Mystic Monk coffee-roasting operations, but more money would be needed. The coffee roaster used to
produce packaged coffee sold to Catholic consumers at the Mystic Monk Coffee website was reaching its
capacity, but a larger roaster could be purchased for $35,000. Also, local Cody, Wyoming, business
owners had begun a foundation for those wishing to donate to the monks’ cause. Father Prior Daniel
Mary did not have a great deal of experience in business matters but considered to what extent the
monastery could rely on its Mystic Monk Coffee operations to fund the purchase of the ranch. If Mystic
Monk Coffee was capable of making the vision a reality, what were the next steps in turning the coffee
into land?
THE CARMELITE MONKS OF WYOMING
Carmelites are a religious order of the Catholic Church that was formed by men who traveled to the Holy
Land as pilgrims and crusaders and had chosen to remain near Jerusalem to seek God. The men
established their hermitage at Mount Carmel because of its beauty, seclusion, and biblical importance as
the site where Elijah stood against King Ahab and the false prophets of Jezebel to prove Jehovah to be
the one true God. The Carmelites led a life of solitude, silence, and prayer at Mount Carmel before
eventually returning to Europe and becoming a recognized order of the Catholic Church. The size of the
Carmelite Order varied widely throughout the centuries with its peak in the 1600s and stood at
approximately 2,200 friars living on all inhabited continents at the beginning of the 21st century.
The Wyoming Carmelite monastery was founded by Father Daniel Mary, who lived as a Carmelite hermit
in Minnesota before moving to Clark, Wyoming, to establish the new monastery. The Wyoming
Carmelites were a cloistered order and were allowed to leave the monastery only by permission of the
bishop for medical needs or the death of a family member. The Wyoming monastery’s abbey bore little
resemblance to the great stone cathedrals and monasteries of Europe and was confined to a rectory
that had once been a four-bedroom ranch-style home and an adjoining 42 acres of land that had been
donated to the monastery.
There were 13 monks dedicated to a life of prayer and worship in the Wyoming Carmelite monastery.
Since the founding of the monastery six years ago, there had been more than 500 inquiries from young
men considering becoming a Wyoming Carmelite. Father Prior Daniel Mary wished to eventually have 30
monks who would join the brotherhood at ages 19 to 30 and live out their lives in the monastery.
However, the selection criteria for acceptance into the monastery were rigorous, with the monks
making certain that applicants understood the reality of the vows of obedience, chastity, and poverty
and the sacrifices associated with living a cloistered religious life.
The Daily Activities of a Carmelite Monk
The Carmelite monks’ day began at 4:10 a.m., when they arose and went to chapel for worship wearing
traditional brown habits and handmade sandals. At about 6:00 a.m., the monks rested and
contemplated in silence for one hour before Father Prior began morning Mass. After Mass, the monks
went about their manual labors. In performing their labors, each brother had a special set of skills that
enabled the monastery to independently maintain its operations. Brother Joseph Marie was an excellent
mechanic, Brother Paul was a carpenter, Brother Peter Joseph (Brother Cook) worked in the kitchen,
and five-foot, four-inch Brother Simon Mary (Little Monk) was the secretary to Father Daniel Mary.
Brother Elias, affectionately known as Brother Java, was Mystic Monk Coffee’s master roaster, although
he was not a coffee drinker.
Each monk worked up to six hours per day; however, the monks’ primary focus was spiritual, with eight
hours of each day spent in prayer. At 11:40 a.m., the monks stopped work and went to Chapel.
Afterward they had lunch, cleaned the dishes, and went back to work. At 3:00 p.m., the hour that Jesus
was believed to have died on the cross, work stopped again for prayer and worship. The monks then
returned to work until the bell was rung for Vespers (evening prayer). After Vespers, the monks had an
hour of silent contemplation, an evening meal, and more prayers before bedtime.
The New Mount Carmel
Soon after arriving in Wyoming, Father Daniel Mary had formed the vision of acquiring a large parcel of
land—a new Mount Carmel—and building a monastery with accommodations for 30 monks, a retreat
center for lay visitors, a Gothic church, a convent for Carmelite nuns, and a hermitage. In a letter to
supporters posted on the monastery’s website, Father Daniel Mary succinctly stated his vision: “We beg
your prayers, your friendship and your support that this vision, our vision may come to be that Mount
Carmel may be refounded in Wyoming’s Rockies for the glory of God.”
The brothers located a 496-acre ranch for sale that would satisfy all of the requirements to create a new
Mount Carmel. The Irma Lake Ranch was located about 21 miles outside Cody, Wyoming, and included a
remodeled 17,800-square-foot residence, a 1,700-square-foot caretaker house, a 2,950-square-foot
guesthouse, a hunting cabin, a dairy and horse barn, and forested land. The ranch was at the end of a
seven-mile-long private gravel road and was bordered on one side by the private Hoodoo Ranch
(100,000 acres) and on the other by the Shoshone National Park (2.4 million acres). Although the asking
price was $8.9 million, the monks believed they would be able to acquire the property through
donations and the profits generated by the monastery’s Mystic Monk Coffee operations. The $250,000
donation they had received from an individual wishing to support the Carmelites could be applied
toward whatever purpose the monks chose. Additionally, a group of Cody business owners had formed
the New Mount Carmel Foundation to help the monks raise funds.
OVERVIEW OF THE COFFEE INDUSTRY
About 150 million consumers in the United States drank coffee, with 89 percent of U.S. coffee drinkers
brewing their own coffee at home rather than purchasing ready-to-drink coffee at coffee shops and
restaurants such as Starbucks, Dunkin’ Donuts, or McDonald’s. Packaged coffee for home brewing was
easy to find in any grocery store and typically carried a retail price of $4 to $6 for a 12-ounce package.
About 30 million coffee drinkers in the United States preferred premium-quality specialty coffees that
sold for $7 to $10 per 12-ounce package. Specialty coffees were made from high-quality Arabica beans
instead of the mix of low-quality Arabica beans and bitter, less flavorful Robusta beans that makers of
value brands used. The wholesale price of Robusta coffee beans averaged $1.15 per pound, while mild
Columbian Arabica wholesale prices averaged $1.43 per pound.
Prior to the 1990s, the market for premium-quality specialty coffees barely existed in the United States,
but Howard Schultz’s vision for Starbucks of bringing the Italian espresso bar experience to America
helped specialty coffees become a large and thriving segment of the industry. The company’s pursuit of
its mission, “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a
time,” had allowed Starbucks to become an iconic brand in most parts of the world. The company’s
success had given rise to a number of competing specialty coffee shops and premium brands of
packaged specialty coffee, including Seattle’s Best, Millstone, Green Mountain Coffee Roasters, and First
Colony Coffee and Tea. Some producers such as First Colony had difficulty gaining shelf space in
supermarkets and concentrated on private-label roasting and packaging for fine department stores and
other retailers wishing to have a proprietary brand of coffee.
Specialty coffees sold under premium brands might have been made from shade-grown or organically
grown coffee beans, or have been purchased from a grower belonging to a World Fair Trade
Organization (WFTO) cooperative. WFTO cooperative growers were paid above-market prices to better
support the cost of operating their farms—for example, WFTO-certified organic wholesale prices
averaged $1.55 per pound. Many consumers who purchased specialty coffees were willing to pay a
higher price for organic, shade-grown, or fair trade coffee because of their personal health or social
concerns—organic coffees were grown without the use of synthetic fertilizers or pesticides, shadegrown coffee plants were allowed to grow beneath the canopies of larger indigenous trees, and fair
trade pricing made it easier for farmers in developing countries to pay workers a living wage. The
specialty coffee segment of the retail coffee industry had grown dramatically in the United States, with
retail sales increasing from $8.3 billion to $13.5 billion during the last seven years. The retail sales of
organic coffee accounted for about $1 billion of industry sales and had grown at an annual rate of 32
percent for each of the last seven years.
MYSTIC MONK COFFEE
Mystic Monk Coffee was produced using high-quality fair trade Arabica and fair trade/organic Arabica
beans. The monks produced whole-bean and ground caffeinated and decaffeinated varieties in dark,
medium, and light roasts and in different flavors. The most popular Mystic Monk flavors were Mystical
Chants of Carmel, Cowboy Blend, Royal Rum Pecan, and Mystic Monk Blend. With the exception of
sample bags, which carried a retail price of $2.99, all varieties of Mystic Monk Coffee were sold via the
monastery’s website (www.mysticmonkcoffee.com) in 12-ounce bags at a price of $9.95. All purchases
from the website were delivered by United Parcel Service (UPS) or the U.S. Postal Service. Frequent
customers were given the option of joining a “coffee club,” which offered monthly delivery of one to six
bags of preselected coffee. Purchases of three or more bags qualified for free shipping. The Mystic
Monk Coffee website also featured T-shirts, gift cards, CDs featuring the monastery’s Gregorian chants,
and coffee mugs.
Mystic Monk Coffee’s target market was the segment of the U.S. Catholic population who drank coffee
and wished to support the monastery’s mission. More than 69 million Americans were members of the
Catholic Church—making it four times larger than the second-largest Christian denomination in the
United States. An appeal to Catholics to “use their Catholic coffee dollar for Christ and his Catholic
church” was published on the Mystic Monk Coffee website.
Mystic Monk Coffee-Roasting Operations
After the morning religious services and breakfast, Brother Java roasted the green coffee beans
delivered each week from a coffee broker in Seattle, Washington. The monks paid the Seattle broker the
prevailing wholesale price per pound, which fluctuated daily with global supply and demand. The
capacity of Mystic Monk Coffee’s roaster limited production to 540 pounds per day; production was also
limited by time devoted to prayer, silent meditation, and worship. Demand for Mystic Monk Coffee had
not yet exceeded the roaster’s capacity, but the monastery planned to purchase a larger, 130-poundper-hour roaster when demand further approached the current roaster’s capacity. The monks had
received a quote of $35,000 for the new larger roaster.
Marketing and Website Operations
Mystic Monk Coffee was promoted primarily by word of mouth among loyal customers in Catholic
parishes across the United States. The majority of Mystic Monk’s sales were made through its website,
but on occasion telephone orders were placed with the monks’ secretary, who worked outside the
cloistered part of the monastery. Mystic Monk also offered secular website operators commissions on
its sales through its Mystic Monk Coffee Affiliate Program, which placed banner ads and text ads on
participating websites. Affiliate sites earned an 18 percent commission on sales made to customers who
were directed to the Mystic Monk site from their site. The affiliate program’s Share A Sale participation
level allowed affiliates to refer new affiliates to Mystic Monk and earn 56 percent of the new affiliate’s
commission. The monks had also just recently expanded Mystic Monk’s business model to include
wholesale sales to churches and local coffee shops.
Mystic Monk’s Financial Performance
At the conclusion of Mystic Monk Coffee’s first year in operation, its sales of coffee and coffee
accessories averaged about $56,500 per month. Its cost of sales averaged about 30 percent of revenues,
inbound shipping costs accounted for 19 percent of revenues, and broker fees were 3 -percent of
revenues—for a total cost of goods sold of 52 percent. Operating expenses such as utilities, supplies,
telephone, and website maintenance averaged 37 percent of revenues. Thus, Mystic Monk’s net profit
margin averaged 11 percent of revenues.
Strategic Vision and Mission
The Business Vision
and Mission
Chapter Two
2
1-3
Course Objectives
1. Apply the dynamics of group decision-making
and teamwork.
2. Assess the conceptual skills required in managing
strategic activities, given the changing external
environment.
3
2-4
Chapter Objectives
1. Describe the nature and role of vision and mission
statements in strategic management.
2. Discuss why the process of developing a mission
statement is as important as the resulting document.
3. Identify the components of mission statements.
4. Discuss how clear vision and mission statements can
benefit other strategic-management activities.
4
Review: Stages of Strategic Management
Strategy
Formulation
5
Strategy
Implementation
Strategy
Evaluation
2-6
A Comprehensive Strategic-Management
Model
6
Vision
7
2-8
What Do We Want to Become?
• A Vision Statement should answer the basic
question, “What do we want to become?”
8
2-9
Vision Statement Guidelines
• The vision statement should be short, preferably
one sentence.
Be the world’s beer company. Through all of our
products, services and relationships, we will add to life’s
enjoyment.
9
Vision and Core Values
10
Vision: Core Ideology and Envisioned
Future
• A well conceived vision consists of two major
components:
• Core Ideology
– Defines what we stand for and why we
exist
• Envisioned Future
– What we aspire to become, to achieve, to
create
– Something that will require significant
change and progress to attain
11
Core Ideology
Consists of Two Distinct parts
1. Core Values
– A system of guiding principles
2. Core Purpose
– The organizations most fundamental
reason for existence
12
Core Values
• Require no external justification
• Have intrinsic value
• A company decides for itself what values it holds
to be core
• Walt Disney Company’s core values of
imagination and wholesomeness stem not from
market requirements but from the founders inner
belief that imagination and wholesomeness should
be nurtured for their own sake
13
Core Values
• Company’s tend to only have a few core values
• Between 3 and 5 (Only a few values can be truly
“core”)
14
Developing Core Values
• An organization must push with relentless
honesty to define what values are truly central.
• If more than 5 are chosen, an organization may be
confusing core values (which do not change) with
operating practices or business strategies
• Values must stand a test of time
• Once a preliminary list is drafted, a question
should be asked of each one.
– If the circumstances changed and
penalized us for holding this core value,
would we still keep it.
• If yes, then the value is not core.
15
Examples of Core Values
• Corporate Social
Responsibility
• Science-based
innovation
• Being a pioneer- not
following others
• Creativity, Dreams,
and Imagination
• The right to freedom
of choice
• Hard work and
individual productivity
16
• Encouraging individual
initiative
• Never being satisfied
• Fanatical attention to
consistency and detail
• Excellence in
reputation
• Honesty and Integrity
• Hard work and
continuous self
improvement.
Mission
17
2-18
Mission: What Is Our Business?
• Mission statement
– a declaration of an organization’s “reason
for being.”
– answers the pivotal question “What is our
business?”
– reveals what an organization wants to be and
whom it wants to serve
18
1-19
We are a luxury brand whose incredible family
of associates puts the soul in hospitality every
day. The needs of our guests, associates and
owners are in the forefront of everything we do.
Through authenticity and innovation, we create
unique memorable experiences.
19
2-20
Mission Statement
– Also known as :
•
•
•
•
•
20
a creed statement
a statement of purpose
a statement of philosophy
a statement of beliefs
a statement of business principles
1-21
Characteristics of A Mission Statement
• Not too lengthy (around 250 words or less)
• Arouse positive feelings/emotions about the
organization
• Inspiring
• Enduring
21
1-22
Characteristics of A Mission Statement
• They are not designed to be the absolute end.
• They should:
–
–
–
–
22
Provide motivation
Provide general direction
Set the tone
Provide a philosophy to guide the
organization
1-23
Mission Statement Components
• Customers
– Who are the firm’s customers?
• Products or services
– What are the firm’s major products or
services?
• Markets
– Geographically, where does the firm
compete?
• Technology
– Is the firm technologically current?
23
1-24
Mission Statement Components
• Concern for survival, growth, and profitability
– Is the firm committed to growth and
financial soundness?
• Philosophy
– What are the basic beliefs, values,
aspirations, and ethical priorities of the
firm?
• Self-concept
– What is the firm’s distinctive competence
or major competitive advantage?
24
1-25
Mission Statement Components
• Concern for public image
– Is the firm responsive to social,
community, and environmental concerns?
• Concern for employees
– Are employees a valuable asset of the
firm?
25
1-26
We are a luxury brand whose incredible family
of associates puts the soul in hospitality every
day. The needs of our guests, associates and
owners are in the forefront of everything we do.
Through authenticity and innovation, we create
unique memorable experiences.
26
1-27
Team Exercise
27
Vision and Mission Exercise
•
•
•
•
•
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