Mystic Coffee

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Date Submitted: 11/09/2011 12:43 PM

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Case 1-mystic Monk coffee

Question # 1

The Carmelite Monks of Wyoming was established by Father Daniel Mary the Prior. The original monastery consisted of only 13 monks, who devoted their days to praying and working of not more than 6 hours. For a small community of Monks it worked but Father Daniel Mary had a greater vision. Since his background included competitive sports he couldn’t help to dream bigger. One can become a monk but it won’t take away the competitive nature of a person.

The biggest vision of Father Daniel Mary include expanding the monastery by acquiring the near by Irma lake Ranch for $8.9 million. This would enable his dream to building retreat center for lay visitors, gothic church, a convent for Carmelite nuns, and a hermitage, And would eventually allow the number of monks to rise to 30. Despite not being a business man, Father Daniel realized that in order to fulfill his vision he will have to obtain more funds and the best and the most efficient way would be to expend the coffee brewery, and the first step would be to purchase a larger roaster. He understands the business benefit of investing $35000 in obtaining a larger roaster to expand the production. Unfortunately they don’t expand their marketing. One good example would be to sell their coffee at the near by stores, slowly expanding to chain stores such as Seven11. The catholic community is the second largest community in the United States, I believe that if they would advertise their plan and vision on a wider scare there would be a lot more supporters.

Plan to acquire Irma Lake Ranch.

8.9 Million

$200,000 down Payment with $50000 in closing fees (since its a religious organization and backed by the catholic church the mortgage would not be a big problem)

30 year fixed mortgage with 4.7% interest rate would give a monthly payment of about $45000. This is not a realistic plan since their income from the Coffee brewery is about $75000 annually. The Monastery won’t even...