Before recommending any improvements on the strategy and business model, it is necessary to analyze the key internal strengths and weaknesses of the monastery and evaluate major threat and opportunities. The first initial strategic option was to consider Mystery Monk Coffee operations as a potential source for funding the project. For implementing this strategy it is necessary to produce a calculation of the monastery’ s production capability. At the moment, roaster production capability is limited to 540 pounds per day. Assuming that the monastery will purchase new roaster and increase its capacity to 130-pounds-per-hour, it is possible to calculate the potential income which coffee roasting operations will generate for the monastery.
If there will be two shifts, each for 6 hours, the production time per day will be 12 hours. If the monks will work days a week, the total number of working days will be approximately 26 days/month. Thus, the maximum output of roasting operations will be 3744 pounds of coffee per year (12hours*26days*12months) or 4988 bags of coffee (12 ounces). Even if to assume that the monastery will work with maximum production level and will sell all the coffee, it will not cover the necessary investment in the nearest 5-10 years.
Therefore, it is important to find additional channels that will add to coffee operations. As the analysis shows it is obvious that coffee operations are not enough in order to cover the necessary investment for purchasing the ranch. However, MMC’ s coffee operations is a viable business which can be developed and generate revenue for the monastery. However, assuming that the owner of the ranch will not be happy to wait for 5-10 years until the monastery will be able to buy out the ranch, the monastery can consider the option of applying to a bank for a loan. It might be reasonable to reconsider the choice made in favor to Irma Lake Ranch and to find another place for the monastery.
It might be smaller place, also beautiful, and appropriate for implementing the Monastery’ s new vision.
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