1. Does Mystic Monk Coffee have a competitive advantage? If so, what is it and is it sustainable? Throughout what Mystic Monk Coffee has done, I believe it has the ability to build a competitive advantage. According to the case, the Mystic Monk Coffee was produced by using the high quality fair trade Arabica and fair trade/organic Arabica beans with variety of blends and flavors. They also produce T-shirts, gift cards, CDs featuring the monastery’s Gregorian chants, and coffee mugs that give different choices for the consumers. Mystic Monk Coffee might create less sustainable compare with other competitors in the industry due to the quality of the coffee. However, Mystic Monk Coffee’s target market was on 69 million members of the Catholic Church in the United State that generate enough profits for them to be sustainable. 2. Evaluate Father Mary’s strategy using the “three tests of a winning strategy” from the text. * The Fit test: The strategy fits the company’s situation since the products were made in high quality and differentiate with others’ products.
The case states that the specialty coffees had grown dramatically with retail sales increasing from $8.3 billion to $13.5 billion in the last seven years and the retail sale of organic coffee has grown for $1 billion. The company also focuses on U.S. Catholic customers and using their loyalty to advertise to the others. They also make sales through website, telephone, etc. * The competitive advantage test: the strategy might bring a sustainable competitive advantage for the company. It’s proved that Mystic Monk Coffee’s sales of coffee and coffee accessories average about $56,500 per month. The company can focus on building a strong loyalty with customers. * The performance test: be able to generate $56,500 per month is an impressive number for Mystic Monk Coffee since none of them have certain experience to manage an operation. I believe the strategy producing good financial performance. 3. If you were a volunteer consultant (because Father Mary probably couldn’t afford your consulting fee otherwise) and based on the evaluation above and other information in the case, what recommendations would you make to Father Mary and why (i.e., support your recommendation with analysis from the case).
* The monastery should specialize in the production process and highly train to improve quality of coffee. That can help to reduce time and cost of goods sold; thus generate more profit. * Father Daniel Mary can contact with
other Catholic Church to spread the letter to the supporters so they can know about Mystic Monk Coffee was working hard on to acquiring a new Mount Carmel – a building for 30 monks, a retreat center for lay visitors, a Gothic church, a convent for Carmelite nuns and hermitage. * Try to minimize the cost from suppliers, shippers, etc. Kelleher Video:
1. Reiterate from the video the Mission and Vision of Kelleher for Southwest Airline. Kelleher vision is short distance travel, friendly customer, low fare and point-to-point travel airline. Kelleher mission is to democratize the sky. Reinvent the idea of travel and de-regulate the airline industry with low fare and friendly customer service. 2. How would you characterize Southwest Airlines strategy? Southwest Airline characterized by low profit margins and yet managed to profit and stay in business from doing so. Through product differentiation and a strategy of low cost and no frills, Southwest has been successful in distinguishing itself from its competitors in order to sustain profitability in this aggressive industry. 3. What elements of the company’s operations support the strategy? Southwest campaign and advertise free liquor to those who flight Southwest at a regular price of $26 when rivalry airline are lowering the fare by $13. So Kelleher came out with an idea and advertises free liquor to his customer.
The flight attendants were handing out Vodka, Rum, Royal, and Whisky. In the 1970’s they were the top distributer of whisky in the state of Texas. By this campaign they manage to drive their competition out of business and out of the state of Texas. 4. Given today’s economic, political, social, governmental environments, what issues do you see emerging in that will have positive or negative effects on the airline industry generally and on Southwest specifically? First identify the issue and then the impact. With today economic crisis, airline are laying off employee, baggage fees were charged and serving meals on the airplane. These known issue were present by the competition airline which Southwest stand their ground and act differently. They did not lay off employees but rather employed more. They advertise free baggage travel and successfully gain more travels because they do not have to pay for ridiculous baggage fees. In return southwest have gain more shareholder and confident investor. They served free peanuts and drinks when other served whole meals in return they have proven and delivery their promise as fast turns around time to board and lower airfare. They only flight Boeing 737 so their employees know the plane inside out in return they saved millions on the aircraft maintenance fees. These strategies make positive effect to the airline industry, which make southwest special, unique and fun airline to travel with.