Category: Coffee

Research conducted by the World Bank indicates that, more than half of the developing countries depend on coffee exportation which, contributes to, about 50% of the earnings from exports. The annual coffee sales are estimated to about 70 billion dollars, and of this amount, only 5 billion dollars make it to the developing countries. The rest is absorbed by the developed countries somewhere along the way.

For a long time, the global coffee market has been facing the issue of lack of price controls. This has caused a steady decline in the prices implying that the coffee farmers are not in a position to generate sustainable profits. In the recent past, this reduction in prices has been attributed to the increase in the number of new entrants in the market hence increasing the level of competition.

An example of such economies that have recently joined the coffee market is Vietnam. The result of this is an extension in production at a higher rate than the increase in demand which at the end of the day creates a surplus in the market. The leading economies in producing coffee globally include Brazil which has been, on top for many years and Vietnam whose progress seems to be a threat to Brazil (Osorio, 2005).

The worlds coffee market trends have in a long time been affected by many factors that have put the markets strength at stake. One of such factors includes the already mentioned issue of excess surplus whereby the supply is greater than the demand by a great margin such that the result has been a significant downturn in prices.

The prices of coffee in the past five years have been decreasing by approximately 65%, and this might eventually force the farmers to shift to other more productive activities. This may also lead to an acute shortage of the product (Osorio, 2005).

The main problem here is not in the high level of production but the lack of price controls. The prices are left for the market to make the adjustments and the market automatically adjusts to the production and the general laws of demand and supply.

The other significant factor in the coffee market according to this article is the gradual increase in fuel prices. This led to the increase in the cost of transportation that is a great disadvantage to the exporting countries. The prices of the coffee beans in the market did not rise to offset this increase in transportation cost hence the farmers incurred an added expense.

At the end of the day, the farmers tend to withdraw from coffee production since it was no longer profitable to export coffee. Coffee processing is done by four major companies which tend to increase the prices of end product when faced with a shortage of the raw materials.

The developing countries tend to export the raw material at very low prices but import the end product at exceptional prices amounting to exploitation (Sloman et al, 2010). This trend for example, led to the creation of alternative cash crops in the leading producing countries such as Vietnam and Brazil owing to the need to supplement their export earnings.

Crop diversification led to a change in the coffee market, and the establishment of the international coffee organization made this better as they took over the role of setting prices for the coffee market.

Some information regarding the changes in the coffee market is however, not clearly presented in the article. This includes the details of the effects of these trends in different regions. The article has been generalized on the international coffee market neglecting the whole idea of the specific markets in different countries. A slump in the general market does not imply the same effect on the specific economies.

Some economies have their own established domestic market and hence, seem not to be affected much by the international coffee market prices. The other unmentioned issue that is of great importance is the effects of these changes on the different varieties of coffees. The most commonly produced coffee types are the Arabica and Robusta coffee (Osorio, 2005).

The price effect affects each of the classifications at different levels depending on quality and popularity. Including this information in the analysis of coffee prices is important as it may regulate the production decision making in the producing countries which instead of terminating production might lead to changing to the production of an alternative variety.

The coffee market industry can be classified under either the oligopolistic market structure or the appropriate competition market structure depending on the side the market is approached from. From the raw materials perspective, this industry is closer to being a perfect competition model.

This is owing to the free entry or exit in the market, presence of large number of firms, production of homogeneous commodity with similar costs and the producers being the price takers while the prices are determined by the forces of demand and supply in the market (Osorio, 2005).

The commodity also has many sellers and buyers bringing it more close to the perfect competition market structure. It is however, not possible for any market structure to simulate a total appropriate structure. The prices are set at the level of the minimum average cost.

From the refined product perspective, this industry can be classified as an oligopoly. It has a few numbers of firms, and entry is restricted by the high cost of production and the intense competition in terms of quality and market share. There are only four major producers of coffee in the world market, and these include nestle, Procter and Gamble, Kraft and Sara Lee (Sloman et al, 2010).

These companies compete among themselves but set up strategies of ensuring that new entrants in the industry are blocked before they get the chance to succeed. This is referred to as competition, and collusion in economic terms and it ensures that the companies are sheltered from competition outside their umbrella.

They set the prices and the market here is the price taker. This explains the high prices of the processed coffee that does not respond to changes in demand. The consumers are therefore forced to adjust to these prices instead of the prices adjusting to the changes in demand.

Companies in this market use the accumulated stock strategy to create demand when the demand seems to be outdoing the production hence threatening the cost. This is whereby instead of reducing the prices due to increase in demand the producers withdraw the product from the market creating an artificial shortage. This automatically leads to an increase in prices and the consumers are forced to adjust to these prices.

This strategy is however, costly since it leads to a reduction in the level of performance and it also results in to the loss of sales between the time the product is withdrawn from the market and the time the consumers adjust to the high prices. This may take long as the consumers may first decide to withdraw their purchases anticipating a decrease in price (Sloman et al, 2010).

This however, has a number of benefits, the most important of them being the fact that the prices in the long run will stabilize and they will not be altered by increased demand or production as dictated by the forces of demand and supply.

The macroeconomic implications of these changes experienced in the coffee market are a reduction in the balance of trade in the exporting countries. This is whereby the expenditure in imports exceeds the income from exports and the country ends up making losses. The developing countries which are the largest producers of the coffee crops are the most affected by these trends (Sloman et al, 2010).

This is because they export their products as raw materials at lower costs and since they do not have the capacity to process these products, they end up importing the processed output at a higher cost from the developed countries.

References List

Osorio, N. (2005). The world coffee market: Lessons from the crisis and future scenarios. Minneapolis, MN: International coffee organization.

Sloman, J., Norris K. & Garratt D. (2010). Principles of Economics, 3^rd ed. Sydney, Au: Pearson.

Herzbergs motivation-hygiene theory was first introduced in his book the Motivation to work, written in collaboration with Mausner and Snyderman in 1959. Through extensive research on job satisfaction and dissatisfaction among employees, Herzberg found that the factors that affect positive and negative attitudes of employees are almost always different (Mantie & Lichty, 2012). Therefore, practices that promote job satisfaction, such as recognition and awards, may not be effective in decreasing dissatisfaction with the companys policy or supervision. The six primary factors that lead to job dissatisfaction are the companys policy, supervision, relationship with management, working conditions, salary, and relationship with colleagues. On the other hand, the factors that promote job satisfaction are achievement, recognition, the nature of work itself, sense of responsibility, advancement, and growth (Mantie & Lichty, 2012).

In the Coffee Break case, it is clear that the workers are concerned about their working conditions, supervision, and relationship with colleagues. These are all the factors that cause job dissatisfaction, but will not necessarily lead to satisfaction if eliminated. This explains why the supervisors attempt to solve the issue was unsuccessful. Indeed, according to Herzbergs theory, changes to companys policy and supervision style will not cause the employees to feel more positive about their jobs. To raise job satisfaction among employees, I would address the factors that lead to higher rates of satisfaction. For instance, introducing awards and recognition for successful work could promote positive attitudes. Moreover, in order to make employees feel better about shorter coffee breaks, it would be useful to stress the importance of their job, thus calling to their sense of responsibility, which is also among the factors affecting employee satisfaction.

There are two management positions that were involved in the Coffee Break case: the supervisor and the director. The degree of the directors involvement in the daily operations of the organization is unknown, and so is his or her relationship with the colleagues. Judging from the overview of the case, the director has very little interaction with regular employees and relies on the supervisor to communicate the policy changes and other issues to the employees. The supervisor, on the other hand, functions as a medium between the director and the workers and manages the daily operations of the unit. Both persons, however, use legitimate power to govern employees. Legitimate power relies on the position in the organization and not on the leadership quality or interpersonal relations. Such power structure, thus, may be among the reasons for the coffee break issue.

Whereas it is normal for the higher management, such as the director, to rely on legitimate power, the supervisors should have better connections with the group of employees to promote positive attitudes to work and raise the morale. The supervisor in the Coffee Break case used legitimate power in an attempt to solve the issue by setting the ground rules regarding breaks and communicating them to the employees during an official staff meeting. It comes to no surprise that the employees felt unappreciated and their relationship with the supervisor worsened as a result of the change. The use of referent power would be more efficient, as it is based on building authority through interpersonal relationships. Addressing employee concerns on a more personal level and providing opportunities for positive interactions  for instance, by issuing awards or recognition  would have allowed the supervisor to solve the coffee break issue more effectively.

References

Mantie, M. W., & Lichty, R. (2012). Managing the unmanageable: Rules, tools, and insights for managing software, people, and teams. Boston, MA: Addison-Wesley.

The case of Ground Zero Coffee Inc. demonstrates the different aspects of independent control within one organization. The Ground Zero company specializes in roasting and grinding coffee imported from coffee growers in Guatemala on fair trade terms. The mastermind behind the ground Zero companys philanthropic image and business ideas, William D. Brewster, was appointed to the companys district manager position in Brewsters home city in Knoxville, Tennessee. Brewsters functions in the company are almost entirely autonomous, meaning he makes the most decisions for his district. However, in pursuit of finding solutions to resolve the consequences of the tragic accident that happened to his family, Brewster made questionable choices that may be regarded as an abuse of power. The divisions poor financial results caused by increased investment in a new division of mail coffee orders worsened the situation.

Firstly, considering the performance measurement aspect, the CEOs decision to use the ROI index as a primary indicator for the success of the companys divisions is sourced from the companys growth goal. According to Kernez (2021), ROI presents a relatively informative indicator of a companys growth for investors. However, in the case of Tennessees division, the development of a new service of mail-order coffee required significant additional investments. Thus, the companys operating profit should be increased proportionally to maintain a positive ROI index value. The ROI index can successfully be applied to the financial data of divisions that do not undergo significant changes.

However, the Tennessee division presents a pioneering branch that focuses on developing new services and coffees, which implies a constant flow of investments. Furthermore, investments in the Tennessee division are supposed to benefit the whole company by developing new beneficial services. Therefore, using the ROI data for the branch is wrong as it will not provide accurate information about the branchs success. Furthermore, despite having a low ROI compared to the goal, the profit margin and asset turnover index data are relatively high (Table 1). As Brewster function as a leader whose ideas outline the organizations mission and culture, the correct index for the divisions productivity will be the combination of customers, vendors, and employees satisfaction level. As the case details imply that Brewsters high organizational culture standards drive the overall companys success, the satisfaction index will present a reference indicator for other divisions.

Table 1. Ground Zero Coffee Inc. Tennessee Division Key Financial Indicators

Furthermore, the leadership and the CEO should review the organizations internal control structure that favors the full autonomy of division managers. While Brewsters inconsiderate decisions in an emergency were ethically correct because, ultimately, they benefitted the company, it is unknown what other divisions managers can do to maintain high ROI. Thus, while autonomy provided Brewster to find more creative ways for the companys development through snack bars, his primary functions centered on developing services and new coffees. Therefore, introducing additional control over divisions will ensure that managers focus the work on their primary functions.

In conclusion, the case demonstrated the importance of choosing the right performance indicators for the companys different goals. While ROI presents an informative source for potential investors, the leadership can use more detailed indicators to measure individual divisions performance. For the Tennessee division specializing in innovation and organizational culture development, the ROI index does not provide accurate information about the divisions performance. Furthermore, it is necessary to reduce the autonomy of division managers to prevent cases like Brewers and ensure that managers work is focused on fulfilling their primary functions.

Reference

Kernez, R. (2021). Calculating your companys growth rate (And other important business indicators).Forbes.

The startup envisions opening a coffee shop based on ecological preparing and processing food and other materials. The main product for sale in the restaurants menu is coffee. In the assortment, there are snacks, sandwiches, including vegan and gluten-free, to attract a different consumer.

Location and Facilities

The eco-coffee shop will be located next to Manhattan College in NYC on 454 W 238th St; nearby facilities include a university, a park, parking spaces, and the metro, all walking distance.

The Cost of Rent and Utilities

The monthly rent will be $2,450, and the total utilities will cost $200. About $50 per month will be paid for water and sewage. Gas can go up to $120, electricity about $90, trash removal  $40. Internet bills can cost around $70 a month.

Production Process

The production operations of a coffee shop include unloading, transporting goods, receiving, storing, preparing for sale, and selling. The main ones include operations related to the sale of goods and customer service.

The Equipment

The purchase of equipment, furniture, vehicles needed in operations will be around $70,000. It presupposes coffee machines, a cash register, refrigerators and decoration elements.

The Capacity to Produce the Product

The ability to manufacture a product can be defined as competitive, offering an alternative to existing products on the market.

The Approach to Quality Control

Quality control will be carried out by daily checking the fulfillment of sanitary requirements for the premises, dishes, workers, inventory, etc. (Abrams, 2019).

Supplies

To provide products, it is planned to interact with local markets and private farmers to obtain the most environmentally friendly products.

The Approach to Inventory

Calculation of balances and comparison of the planned balance with the actual will be carried out every first day of the month.

Time to Produce the Product

After receiving the order, the employee will take up to 5 minutes to give the order to the client.

Personnel Needs in Operations

I need two baristas and an assistant with accounting experience to run my business. The accountant will receive an average of $60,000 depending on the profit and baristas  about $13 an hour with additional surcharges.

Research and Development

To keep abreast of the industrys new developments, I need to visit forums and refresher courses. The development manager will be responsible for the research activities. It is planned to switch to orders in digital form through a mobile application.

Reference

Abrams, R. (2019). Successful Business Plan: Secrets & Strategies. PlanningShop.

Blog Proposal

The selected business for the given scenario is Colonized Coffee, which aims to deliver a high-quality coffee product at lower costs in order to capitalize on and satisfy the needs of young coffee drinkers. The main reason is that younger individuals are becoming more aware and interested in coffee quality, which attracts them to coffee products with higher quality and taste. However, a vast majority of such products are either excessively expensive, which is why Colonized Coffee provides a unique solution to this demand. The marketing efforts will primarily focus on young adults aged 25-35 since the range reflects people who have only recently entered the workforce and are likely to have tight budgets but still prefer higher-quality coffee rather than common retail products. In the case of psychographic factors, the coffee culture among young adults is constantly evolving and developing, which indicates that quality and taste preferences are also becoming more demanding and intricate.

The blog will utilize a wide range of key marketing and communication techniques, where casual language and a more relaxed attitude will be utilized. Young adults are highly accustomed to and familiar with common marketing tactics because they have been exposed to the internet since childhood. Therefore, the product must not be forced or deceptively presented, which means a subtler format is required. The blog needs to be useful, informative, and entertaining as well as honest. Marketing Colonized Coffee through such measures will be more effective and plausible since the product is exceptional on its own.

The key strategy is to provide value and important information in the blog post, where the product itself is a mere recommendation rather than the center of the post. Therefore, the approach will be based on researching the current trends and intricacies of coffee products as well as comparison on the basis of their quality. By reviewing and educating readers on coffee in general, the blog will be useful and sincere. The honest and direct connotations of the blog post will not make the target product perceived as a genuine offer. The main advantage of a blog over is the fact that the target audience is used to the constantly updated content, and it also facilitates user interaction. Through it, a person realizes himself as an author and marketer without waiting for the obligatory reaction of readers, learns to form ones point of view, and also gets the opportunity, without leaving the blogosphere, to find a lot of useful information (Knapp, 2022). Considering the role of blogs and their functions in this information space, it is important to capitalize on their communicative functions.

Blog Post

There are so many types of coffee on the shelves of supermarkets that there is always a doubt about which one to choose. It is necessary to find among these jars, packs, and boxes the option that has the desired taste and aroma.

Robusta and Arabica are types of coffee trees. Each variety has certain qualities that affect the taste and amount of caffeine.

The name robusta comes from the word robust  which means strong, hardy. Unpretentious trees grow at low altitudes  up to a kilometer above sea level, on a flat surface. Coffee on such plantations is harvested by special combines. The taste of Robusta is stronger, but there is more caffeine in its grains than in Arabica.

Arabica trees grow on high mountain plantations and farms where it is impossible to deliver equipment. Trees are often exposed to various diseases, and pickers manually pick berries, which is quite difficult in such conditions.

Because of this, Arabica coffee is more expensive, and it has less caffeine. However, there are more affordable versions of Arabica with equivalent quality, such as Colonized Arabica.

Despite the higher price, lovers note the aroma of the drink and its fruity, berry, and nutty notes  a more multifaceted taste than Robusta.

I opted for 100% Arabica. The first time it tasted more sour and fruity, but coffee should be that way  pleasant, not bitter and astringent. At the moment, Colonized Coffee offers the greatest value for its quality and taste, which is why I stopped drinking other products.

I still recommend buying coffee in a coffee shop, because there it will definitely be fresh. Baristas will be able to grind it in any way. Such coffee should be drunk within a week, as the drink quickly loses its taste and aroma.

Ground or grain coffee should be stored in a dark place in a closed opaque pack. Therefore, I advise you to avoid transparent packaging. The pack should stand in a dark place without access to air so that it does not erode.

Freshly roasted coffee gives off gases. They are formed due to the fact that the structure of the coffee bean collapses during the frying process. If the pack is completely sealed, after a while, the gas will have nowhere to go. He will break the package if it does not have a valve installed on it.

Reference

Knapp, J. (2022). How to start a blog  beginners guide for 2022. Blogging Basics 101. Web.

Introduction

The following is a discussion on the best recruitment strategies that a coffee shop business will use to bring the best employees into the enterprise. The first part looks into the strategy of recruiting the employees and discusses why the method was chosen.

It then looks into the best communication method to reach the best applicants and attract them to apply for selection. The third part looks into the selection process where it describes the best criterion for selecting coffee shop employees.

In the other part, there are proposals on methods of assessment for selecting candidates to hold various positions in accordance with strategies used in staffing.

Recruitment strategies

There are two types of recruitment strategies namely external recruitment strategy and internal recruitment. The external recruitment strategy is the process in which an organization prefers to pick employees from outside the organization.

The internal recruitment on the other hand is a process that focuses on getting employees who are within the organization. It is less costly as the organization does not need to spend on advertising.

On the other hand, external recruitment strategy involves advertising the vacancies to people who are outside the organization and inviting them to join the organization. For the coffee shop, the best recruitment strategy will be external strategy for a number of reasons.

The first reason is that the external recruitment will give the business an opportunity to choose the best from a pool of potential employees. It will also be advantageous because it will discover new talents, ideas and experience, which may not exist currently in the business since it is new (Boam, 2006).

Communication message to attract applicants to the open positions

After determining the recruitment strategy, which in this case is external recruitment, the business managers must formulate messages that will reach the potential applicants and attract them to apply for the available positions in the coffee shop.

The communication message must attract attention of the potential applicants and persuade them that the coffee shop has the best employment opportunity. The communication message is imperative as it determines whether the organization gets the best team for the work opportunities.

Applicants who have experience in particular areas are very careful on the messages communicated by the prospective employees and they can check the messages to determine whether they are authentic or meant to hoax them.

To get the best employees, the organization must focus on communicating the vision and the mission of the business to the potential applicants. This informs the potential employees of the values that the business has and prepares them to align themselves with the business mission and goals.

A business that does not have values and mission does not brand. They determine what the outsiders think about the business. Is it customer oriented? Is it profit driven? Communicating such messages is imperative in building the business and ensuring that it is successful (Mayo, 2001).

When designing the message to communicate to the potential employees it is imperative to communicate the roles and responsibilities that the applicant or the employee will play in the achievement of the stated mission and vision.

Providing the details of the available job opportunities such as job description and job profiles attracts potential employees who have the capability to perform such roles. It is also important to communicate the qualifications needed for one to be considered capable of performing the responsibilities indicated in the job profile.

It is also important to include the benefits that the job opportunity will offer to the successful applicants. Listing the remuneration offered for each of the available opportunities is imperative in attracting potential employees who may be interested in the job opportunities (Bratton, 2007).

Communication medium for the recruitment effort

The communication medium to use to reach out to the potential employees will be the websites or online communication. This will involve placing targeted adverts on various websites that are accessed by people who are looking for jobs or people who are interested in hotel industry.

This communication method involves posting job vacancies on the company websites or other websites so that the interested candidates may apply for the vacancies. This method is cost effective as the posting can remain for one or two months for little amount of money.

It is cheap compared to advertizing in newspapers or organizing job fairs. However, the recruitment process is tedious as the website is likely to have too many applications and sorting them out may be difficult (Boam, 2006).

Selection process you will use for staffing the coffee shop

While employee recruitment process encourages the potential employees to apply for the job the selection process is the process of eliminating potential employees who are not qualified for the job. Its aim is to ensure that the organization gets the best talent possible. Various organizations use different criteria to select the candidate for the job (Bunting, 2007).

The coffee shop business will use the written tests as the selection criterion for the best employees to include in the organization. The candidates do aptitude tests to test their basic knowledge and competence in the field, which they are applying.

In this case, applicants knowledge on hotel industry will be tested alongside the experience and basic knowledge on business operations of a coffee shop. This method is advantageous because it assesses the employees knowledge and experience.

It is also advantageous because it saves time and resources (Bunting, 2007). However, it is disadvantages because while it tests the employees knowledge and experience it does not show passion that the employee has for the business (Bratton, 2007).

Methods of assessment

The assessment will use three criteria. The first assessment relates to the academic qualifications as part of the assessment criteria. The second assessment criterion relates to the experience, where it will involve selecting the employees based on their experience.

The third assessment criterion deals with the passion that the employee has for the business. This is imperative, as it will determine whether the employees will be passionate for business (Bratton, 2007).

Conclusion

The recruitment strategy brings in the employees that the business is looking for and this ensures that only strong skills are considered for the positions. Besides the skills, the strategy used in selection also looks into the experience and the passion the prospective employee has for the organization.

If the business wants new talents and skills like the coffee shop, external recruitment strategy is appropriate. The selection strategy adopted by an organization is vital in ensuring that the organization acquires the necessary skills. The selection criterion determines the people employed and their contribution to the success of the organization.

References

Boam, R. (2006). Contemporary human resource management: Text and cases. New Jersey: Pearson Education.

Bratton, J. (2007). Human resource management: Theory and practice. Basingstoke: Palgrave Macmillan.

Bunting, M. (2007). Skills, training and human resource development: A critical Tex. Basingstoke: Palgrave Macmillan.

Mayo, A. (2001). Human value of the enterprise, valuing people as assets, monitoring, measuring, and managing. London: Nicholas Brealey Publishers.

Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming?

Yes, Father Daniel Mary has succeeded in identifying a future direction for the chosen group of monks. His idea to create a brotherhood of 30 monks (not 13 as it was at the moment) at age 19-30 had clear grounds and perspectives to was characterized by the economic success because of the development of Mystic Monk Coffee. His vision for the monastery was based on the necessity to have $8,9 million to buy a ranch (Turnipseed C-2).

He has to focus on the development of the Mystic Monk Coffee industry and turn the coffee idea to the land (Turnipseed C-2). It was also necessary to transform the ranch into a retreat center, where people could find the required portion of the support, understanding, and personal goals. It was crucial to promote the creation of a Gothic church, a convent for nuns, and a hermitage (Turnipseed C-2). The mission of the Carmelite Monks of Wyoming was to improve the spiritual attitude of the society and underline the place of monks and nuns in the world. Still, the majority of the visions did not have clear evidence.

Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision?

It seems that Father Daniel Mary set one general goal that was the necessity to buy a ranch and find the required sum of money. To achieve that goal, several objectives were identified. Besides, several performance targets were offered to the goals. First, it was necessary to increase the production of coffee and coffee roasting in particular. The performance target for this objective was to increase the process of roasting from 540 pounds per day to 780 pounds (Turnipseed C-3). Second, it was crucial to improve the conditions under which coffee production could be distributed online and beyond. The performance target was about the possibility to cooperate with supermarkets and other specialized stores and develop the Catholic Church business. People should be properly informed about the production offered by the church.

What is Father Priors strategy for achieving his vision? What competitive advantage might Mystic Monk Coffees strategy produce?

The strategy used by Father Prior to achieve his vision was focused on the improvement of the profit from the Mystic Monk Coffee, its high quality, and a variety of blends and favors. Besides, it was suggested to focus on American Catholic customers and use their intention to support the mission of the monks in Wyoming. The main attraction means were the possibility of phone calls and online orders, the promotion of new affiliates and taxes, and the sales of supplementary products such as T-shirts, gift cards, etc. The focused differential should achieve the required competitive advantage and use the ideas to involve more people in the chosen sphere of business (Snider and Howard 131).

Is Mystic Monk Coffees strategy a money-maker? What is MMCs business model? What is your assessment of Mystic Monk Coffees customer value proposition? Its profit formula? Its resources that enable it to create and deliver value to customers?

Mystic Monk Coffees strategy is a money-maker by its nature because it is based on the US Catholics as the main consumers, who buy their production and support the ideas of the church. MMCs business model consists of two stages: the investments in a new coffee-roasting industry that can lead to the increased productivity and wholesale sales promotion that can be available to churches and other stores, where customers can find the production.

The MMC customer value proposition is strong because the quality is high, and the production standards are met. Though the profit formula can be identified as good, it is not as good as the value proposition because of the presence of certain challenges connected with the improvements in a working day and the necessity to work harder. Still, the main challenge is connected with coffee roasting operations that can be improved in case a larger roaster is purchased to increase daily production. In brief, the current MMCs business model is not perfect because no meaningful contributions to the main goal, the purchase of the ranch are given.

Does the strategy qualify as a winning strategy? Why or why not?

Regarding the challenges Father Daniel Mary faced, it is still possible to say that the strategy is winning, and the challenges may be explained by a weak or not properly developed business model. In fact, the strategy can win a lot because of the presence of loyal customers, who want to buy a high-quality production under any conditions. Coffee sales grow day by day, and as soon the MMC can be known around the whole world, people want to buy the production under the most convenient conditions for the organization.

What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monasterys coffee operations? Are changed needed in its long-term direction? Its objectives? Its strategy? Its approach to strategy execution?

One of the main recommendations that can be given is not to make fast decisions and hurry up to achieve the results because such activity requires a number of skills and experience (Daft and Macic 200). The success of the strategy execution depends on the quality of the decisions made. Besides, it is wrong to rely on the support of their customers and donations only. Father Daniel Mary should pay more attention to the resources of the Catholic Church and search for more stakeholders, who want to contribute the creation of a new church or a hermitage.

The objectives should be properly identified and employee-centered so that every monk can feel his importance in the church and the business (Borg and Mastrangelo 8). Besides, it is necessary to reduce commissions connected with online activities. The strategy itself may be improved by the development of ads at different places nearby which it is possible to find and buy the required coffee product.

Works Cited

Borg, Ingwer and Paul M. Mastrangelo. Employee Surveys in Management: Theories, Tools, and Practical Applications. Cambridge, MA: Hogrefe Publishing, 2009. Print.

Daft, Richard, L. and Dorothy Marcic. Understanding Management. Mason, OH: Cengage Learning, 2010. Print.

Snider, David and Chris Howard. Money Makers: Inside the New World of Finance and Business. New York, NY: Palgrave Macmillan, 2010. Print.

Turnipseed, Daniel. Mystic Monk Coffee. C-2-C-5.

About

Greetings and welcome to our coffee shop! Coffee blog posts concerning more information about our coffee shop can be found here. You can have a look at our content as we are all passionate coffee drinkers. Additionally, our coffee shop offers more pieces of training regarding making coffee which you can know more about here. Our company is ready to share knowledge and passion for our brand through our various blog posts. If you are willing to join our team, look at our coffee brands following information.

Weight Loss As One Benefit of Consuming Coffee

If you want to lose weight quickly and enjoy coffee, you have come to the correct place. Coffee consumption is a good strategy for losing weight. It can aid in speeding up your metabolism, allowing you to burn calories more quickly than usual. Coffee is efficient, safe, and affordable.

Without needing to purchase the weight loss pill, consuming coffee regularly will always provide you with the body you have desired. Consequently, receiving a tiny boost can help you get the outcomes faster. Since black coffee is such a calorie-free beverage, black coffee is one kind of drink that will assist you in significantly and consistently reducing your weight.

Most Outstanding Coffee Recipes to Try Out

Try this delectable coffee recipe if youre upset about the old black coffee. Firstly, with your coffee machine, prepare 25ml espresso and sprinkle it into the bottom of your tumbler. Using the steamer connection, heat the milk until it has approximately 3-6 cm of foam. Lastly, hold the pitcher with the spout around 3-5 cm above the tumbler and slowly pour your milk in.

The Coffee diet: Why You Should Recommend It

The importance of coffees claim has never been greater. Numerous studies suggest that you may be getting more from your favourite morning drinks: coffee contains chemicals that may safeguard women from more common ailments, including Alzheimers illness and cardiovascular diseases. Caffeine appears to be the first thought that comes to our minds whenever we think of coffee.

As per the nutrition experts from Johns Hopkins University School of Medicine, coffee also contains antioxidants and other active compounds that may reduce internal inflammations and safeguard against disease. Both conventional and regular coffee appears to be beneficial for your liver. As per the research, caffeine consumers seem to be more prone than non-coffee drinkers acquiring more liver enzyme concentrations than the standard levels. Coffee provides nutrients including niacin, calcium, potassium, and polyphenols, which also can help with digestion, muscle strength, and cardiovascular health.

Coffee Diet Plan That Is Good for You

However, the diets products are healthy when consumed in moderation; consuming these daily in small amounts can be harmful and dangerous. Breakfast should consist of one mug of black coffee, some piece of bread, and half a mango. Although these products tend to be nutritious, the breakfast is deficient in nutritionally dense foods due to the modest quantities. In essence, the meal has only 218 calories in it.

Although black coffee seems low in calories while high in polyphenols, consuming it more than twice a day is unlikely to be healthy for your life. The 3-Day Diet, also called the egg diet, is an international diet plan that comprises consuming black coffee for each meal. The 3-Day Diet, which appears to be a fast way of losing weight, might as well be unsuccessful and dangerous, so consult with your doctor before trying it.

The evaluation of Keurigs coffee machine must start from its estimated pricing range and product qualities as perceived by the market. When it comes to household appliances, customers are often looking for the fair price versus performance as a primary criterion of judgment (Kotler, Keller, Sivaramakrishnan, & Cunningham, 2013). Other factors, such as the location of distribution, premium status of the product, and distinctiveness among others are less prominent for a coffee machine, as there are large numbers of substitute products in direct competition. As a result, the number of pricing strategies available to Keurig was somewhat limited.

One of the strategies that the company is currently implementing for Keurig Green Mountain is the market penetration strategy. Such a strategy suggests reducing the price and lowering the profit derived from individual units to achieve an economy of scale, distributing a larger number of products, and claiming market share as well as brand exposure (Kotler et al., 2013). Such a strategy is appropriate for coffee machines and similar household appliances. As has already been mentioned, there is a high degree of competition among the producers in the sector. At the same time, the price/quality balance is the primary criterion for making a choice (Stephens, 2016).

By lowering the price of the product, Keurig effectively increases the customers perceptions of the product, as they get more for their dollar than with any other producer. Green Mountain is currently sold at 108 dollars apiece, although its functionality and quality correspond to that of a more premium segment of the coffee-making market, estimated at around 130 dollars (Treadway, 2015). This strategy managed to bring the company greater overall profits while reducing the profit on individual sales.

Another strategy used by Keurig involved in bundle sales. This technique involves selling several thematic goods in a bundle at a lower price per each item (Kotler et al., 2013). Many Keurig machines are sold with a pack of high-quality coffee and a coffee cup in tow so that upon completing a purchase the customer has the opportunity to immediately experience the benefits that the company can provide. The company takes advantage of the fact that it sells not only coffee machines but also the beverages and the cups/accessories to it, something that many other producers in the market cannot do (Treadway, 2015).

Thus, the customer is exposed to the whole list of Keurig products, which has the potential to bolster sales in other sectors of the coffee market. This method also affects the price/quality balance, as the customers get more items per purchase than they would otherwise. However, this kind of strategy also had a negative side effect, as it did reduce the number of coffee machines sold without bundles.

Other pricing strategies have been considered but not utilized by Keurig in the promotion of their latest products. One of these strategies is the price skimming strategy. It is typically utilized in high-tech industries, such as the smartphone and computer/laptop sectors (Kotler et al., 2013). However, high-tech products generate plenty of hype around themselves, as each addition to the product line offers distinct advantages over other models, such as better functionality, increased quality of video and photography, better CPU performance, faster Internet, and other parameters (Stephens, 2016).

Coffee machines constitute a more conservative industry, where innovation is slow, and any improvements usually result in a marginally better quality of service (Fournier & Srinivasan, 2018). Thus, Keurig had no reason for demanding a higher price at the start of the sales, as the hype built around the model did not justify losing potential customers due to a high starting price. Research shows that new products make the most impact during the entry month, meaning that a price-skimming strategy would lose its initial momentum and result in subpar results further down the line (Samper & Quiñones-Ruiz, 2017).

Lastly, economy pricing does not seem to fit into Keurigs overall strategy for the brand. Economy pricing strategy is useful for cheap mass-produced products that could be used to cater to all segments of the market, aiming mainly for the poor and the lower-middle class (Kotler et al., 2013).

The products of the company revolve around the use of K-cups, which contain portions of coffee to be used by customers in their machines. Keurig coffee-makers are not suited to using different brands of coffee. At the same time, the K-cups are expensive, costing roughly 0.58 dollars per 12 ounces of coffee, whereas the average price for 12 ounces in the economy coffee sector is around 0.08 dollars (Anderson, 2017). Thus, the economy pricing strategy would not be effective when applied to Keurig products.

To summarize, Keurigs pricing strategies revolve around market penetration and bundle sales. The former is motivated by the fact that introducing a new coffee-maker without giving the product a significant value/price advantage is very hard due to a large number of potential competitors. The bundle sales pricing method is motivated by the fact that Keurigs primary product is coffee, while cups and coffee-making machines are considered add-ons. Price-skimming and economy pricing strategies, on the other hand, have been proven ineffective due to the nature of the industry and the premium-leaning quality of the coffee used in Keurig machines.

References

Anderson, E. T. (2017). Keurig at home: Managing a new product launch. Kellogg School of Management Cases, 1-19.

Fournier, S., & Srinivasan, S. (2018). The frontlines of brand risk. GfK Marketing Intelligence Review, 10(1), 52-57.

Kotler, P., Keller, K. M., Sivaramakrishnan, S., & Cunningham, P. H. (2013). Marketing management (14th ed.). Don Mills, Canada: Pearson.

Samper, L., & Quiñones-Ruiz, X. (2017). Towards a balanced sustainability vision for the coffee industry. Resources, 6(2), 17.

Stephens, D. L. (2016). Essentials of Consumer Behavior. New York, NY: Routledge.

Treadway, R. B. (2015). Keurig Green Mountain 2015: Dynamic capabilities and sustainable strategic positioning. American Journal of Management, 15(3), 43.

The transformed resources at Costa Coffee are the finished products that are sold to customers, such as coffee, sandwiches, and pastries. These products are created through the transformation of raw materials, which are the transforming resources. The raw materials used at Costa Coffee include coffee beans, milk, flour, and various other ingredients (Venkataraman and Pinto, 2020). The transformation process at Costa Coffee involves both physical and chemical transformations (Slack and Brandon-Jones, 2019). During the physical transformation, the raw materials are transformed into finished products through processes such as roasting coffee beans and baking pastries (Y1ld1r1m, 2020). The chemical transformation occurs as the raw materials undergo chemical reactions during the production process.

To represent this transformation process, a flowchart can be used to show the steps involved in turning the raw materials into finished products. The flowchart could include the following steps:

1. Sourcing raw materials: This step involves obtaining the necessary ingredients and materials from suppliers.
2. Storing and preparing ingredients: Raw materials are stored in an appropriate condition to maintain their quality and are ready for use in the production process.
3. Preparing finished products: This step involves the physical and chemical transformations of the raw materials into finished products using equipment such as coffee roasters and ovens.
4. Quality control checks: Quality control checks are conducted to ensure that the finished products meet the required standards.
5. Serving finished products: The finished products are prepared and served to customers.
6. Packaging and distributing products: The finished products are packaged and distributed to various locations for sale to customers.

Overall, the transformation process at Costa Coffee involves the transformation of raw materials into finished products through physical and chemical changes, using equipment and labor. This process is carefully managed and controlled to ensure the quality and consistency of the finished products.

Reference List

Slack, N. and Brandon-Jones, A. (2019). Operations Management. 9th ed. Cape Town: Pearson.

Venkataraman, R.R. and Pinto, J.K. (2020). Operations management : managing global supply chains. Thousand Oaks, Caifornia: Sage Publications, Inc.

Y1ld1r1m, M. (2020). Individual, organization and structure: Rethinking social construction of everyday life at workplace in tourism industry. Tourism Management, 76, p.103965.