Business Industry Requires Assignment Help
To change the existing norm of the business industry requires a lot of study and strategic planning. Selecting the best suited business strategy can make or break an organisation. Effective business planning and developing authentic strategies will lead to modifications in the pre-existing patterns of the business industry. An organisation’s planning process is affected by number of economical and market factors. It is not possible for any firm to incorporate all the approaches, principles and theories of marketing in one business plan. It is on the part of management to choose the best suited for its own company in the existing market.
Various changes in the business world may affect the world and the market economy but only the positive factors will have to be celebrated and nourished. In the quest of creating new modifications to the business industry, one must possess the necessary grit and perseverance, which can be developed through various means. Discussing new ideas and the establishment of a new project is the primary focus in this report.
The global coffee industry is divided into a 7-member chain procedure. The producers of the coffee are mostly deprived off the extensive profit that the industry harvests every year. Companies and individuals who strive to develop themselves, as the industry’s magnum opus has to continue creating products that are of the target demographics’ choice. It is noted that after crude oil, raw coffee is the most popular commodity on a global scale. The target consumer for coffee is higher than any other industry. This report will analyze Mystic Monk Coffee’s possible threats in the coffee industry and provide necessary solutions to them.
The company selected for this project is the Mystic Monk Coffee. It is a small business located in Wyoming, U.S.A. The company was created in 2007, by a community of Carmelite monks who were trying out ways that would support their growing community in a sustainable way (Coffee, 2018). The business primarily sells gourmet coffee beans- roasted and ground by the monks in the monastery. The business earns their revenue from online transactions mostly and by selling raw coffee beans to their consumers across the country. The rich taste of the coffee beans acquires new customers for the business and over 85% of the consumers for Mystic Monk Coffee are repeat customers (Coffee, 2018).
The company initially began their business in the coffee industry by providing customers with roasted coffee beans that are organically grown and have a rich taste. With the development in the industry and challenges from other coffee giants, Mystic Monk Coffee has delved in the online market of coffee supply to global customers as well. Their products are of good quality and that attracts the customers to their online store (Coffee, 2018). By providing subscription facilities to their customers, the company has ensured a constant demand supply scope for their coffee.
Mystic Monk Coffee being a comparatively smaller and new business in the coffee industry of the US has faced several issues that challenge every new organization in a market economy. Apart from the challenges faced by smaller businesses from coffee industry stalwarts, Mystic Monk Coffee also, face other issues that will be discussed further in this project. The company being an online coffee supplier faces several issues that are related to operation of an e-business (Burns, 2016). Serving customers their special flavour of coffee, the business conducts its activities online. The e-business struggles with operating in a borderless economic zone.
Even after providing shipping to most locations across the country, certain geo-political issues keep being an obstacle for the company. Since the company is located in the least populous state of the US, gathering labour for the coffee plantation is difficult. Pricing strategies are also an issue for the company since the major selling point for the Mystic Monk Coffee is their rich taste and economic pricing. By trying to build a faithful consumer market, the company has to develop their brand name. Since monks run the company, development of proper business strategies and advertising their products through mass media is an issue. They mostly depend on customer feedback and word-of-mouth advertising for their companies’ growth.
Being an online store, several data management procedures such as Enterprise Resource Planning and CRM is necessary for the company. Lack of labour and potential networking issues lead to the company’s loss of customers in the recent months. Mystic Monk Coffee provides their consumers with a stable selection of customized subscription facilities. This requires management of the customers’ private data. External threats and network issues pose a problem in the business’ smooth functioning (Wynarczyk et al., 2016). The company functions due to the administration of a group of Carmelite monks; hence, they do not possess any sort of department that would demarcate the company’s association with profits, marketing strategies, finances and sales.
Lack of different departments overlooking the company’s business activities provides a threat in the efficiency of the company. Lack of labour and organizational skills prevent the company from being a developed coffee connoisseur in the market. The Mystic Monk Coffee business lacks in proper corporate culture evident in other competitive brands of the country. This prevents the company from being a major supply chain like Starbucks- a primary competitor of the business. Since the company does not have much labour power, it also does not provide much scope of incentives and rewards system for the monks employed in the company.
The Mystic Monk Coffee is a self-sustaining business that survives solely on its online sales of roasted organic coffee and recently has started selling customized coffee mugs, clothing, gift cards, chant CDs and other religious items in their online store. Despite being a part of the religious constituency, their core values and business competencies need to be developed if they want to continue being in the coffee industry. Public relations and corporate communication for the business is related to the growth of the company in the global market. Lack of diverse business strategies and offline stores have prevented the brand from developing a proper brand image for themselves. The business survives on their sense of social responsibility but it is based on the consumer’s religious views. Religious views of the consumers cannot be the only advertising criteria for a company that is based on the coffee market of the country.
Threat of New Entrants: The chances of the threat of new entrants in the US coffee industry is moderate to high. There are famous and established coffee businesses such as Starbucks, which are efficient enough to tackle with the competitors which are in competition in the coffee business.
Threat of Substitutes: The threat of substitutes for the coffee industries in US is moderate. The café industries might steel in competition with the other thriving coffee industries and might switch their costs, which would have an impact on the growth of the industry.
company takes into account various factors and strategies, in order to obtain their vision, mission and objectives.
In order, to further comprehend the growth of the business organization, it is essential to take into consideration, the SWOT analysis. With the incorporation of the SWOT analysis, it will be easier to comprehend the strengths and weakness of the industry.
Hence, with the incorporation of a better pricing strategy the company would be able to progress efficiently and produce better results.
The company being a small organization functioning in the global coffee market faces several challenges in implementing strategies that would allow the company to develop. The major issue the company faces while implementing proper pricing strategy that would allow an i8ncrease in revenue collection is that a difference in the price could hamper sales (Barber, Metcalfe & Porteous, 2016).
The company promotes organic growth and harvest of their coffee beans. Even the roasting and grounding process is organic for the company. In order to create better quality products, the company has to produce coffee beans using chemical procedures. The company struggles with advertising their products due to the lack of proper funding (Kuratko, Morris & Schindehutte, 2015). Online advertising and social media marketing are the only viable methods that the company can implement. Being a religious cantered organization the company lacks in creating diverse business strategies as most of their business ideas revolve around religion.
There would be challenges, which are faced by the Mystic Monk coffee company which could be resolved by the integration of better solutions and recommendations. The company can increase its productivity and market capability by lowering the prices of their coffee in the market. The can acquire a better understanding of the market through the integration of focusing and emphasizing on the marketing niche of the company. The coffee company can make the utilization of the best strategies to dominate their business operations, within the domain of America.
According to the statistic and report, the company is not able to acquire high profits due to their cost of supplies and deliveries. The company can introduce better endorsement methods to appeal to the customers. They could opt for the utilization of the best advertisement portal to garner better profits for the growth of the coffee industry.
They must adopt a competitive approach towards the growth of their industry and increase the customer base of their company. With the provision of the best coffee beans, the company can make them sell at a lean price. Hence, this would have a positive and better impact on the growth of profit in the coffee industry.
The report critically assessed the competitive advantage of the Mystic Monk Café in the world of coffee industry.The report has catered to the various significant issues in relation with the coffee industry. The rise in price of raw material can directly impact the operating cost of the company.
[online] Mystic Monk Coffee.
About Us – How Carmelite Monks starting roasting Mystic Monk Coffee.
Available at: https://www.mysticmonkcoffee.com/pages/about-us [Accessed 20 Oct. 2018].
Barber, J., Metcalfe, S., & Porteous, M. (2016). Barriers to growth in small firms. Routledge.
Bose, A., Vira, B., & Garcia, C. (2016). Does environmental certification in coffee promote “business as usual”? A case study from the Western Ghats, India. Ambio, 45(8), 946-955.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Kuratko, D. F., Morris, M. H., & Schindehutte, M. (2015). Understanding the dynamics of entrepreneurship through framework approaches. Small Business Economics, 45(1), 1-13.
Steenkamp, J. B. (2017). Customer Propositions for Global Brands. In Global Brand Strategy (pp. 45-73). Palgrave Macmillan, London.
Wynarczyk, P., Watson, R., Storey, D. J., Short, H., & Keasey, K. (2016). Managerial labour markets in small and medium-sized enterprises. Routledge.
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