The impact of the pandemic on the functioning of business models with an example of selected family businesses

Abstract

Purpose: The purpose of the study was to indicate the impact of the COVID-19 pandemic on the functioning of business models of selected companies. The analysis of the operation and direction of changes in the business model was carried out with an example of two family businesses. Conducting research on the impact of the COVID-19 pandemic on the change in business models of companies is important due to the fact that the pandemic forced changes in the operation of many plants, which could affect the functioning of the business models adopted so far. For entrepreneurs, it is important to indicate how to modify and create business models that will work in different conditions. A good business model concept not only allows the company to gain better insight into its own business, but also allows for improvements and innovations. Design/methodology/approach: Business model analysis is based on one of the most popular business model templates, which is the Business Model Canvas. Changes in the functioning of the business model before the pandemic in 2018 and in 2021 were assessed. Nine elements of the business model were analysed, i.e. customer segments, value proposition, channels/communication, distribution, sales, customer relations, revenue streams, key resources, key activities, key partners, cost structure. The analysis was based on literature studies on the subject discussed and on the basis of data obtained during interviews with business owners. Findings: When analysing the examples of companies and their business model, it can be concluded that the changes in the elements of the business models of the surveyed enterprises were both quantitative and qualitative. Companies have made the most changes in the following elements: key resources, key activities, key partners, cost structure. Other elements included in the Business canvas model have only partially changed, such as customer relations. During the pandemic, another important aspect was noticed in companies, related closely to employees. The lack of an employee due to illness or the lack of a replacement for such an employee generated big problems, confusion at the level of customer relations, customer contacts, contacts with partners, timeliness of production and delivery, etc. The author proposed modifications to the existing BUSINESS CANVAS MODEL by adding the “employees” element. An analysis of this additional element in the model already at the stage of creating a business model can help new companies build a stable business model that will work in difficult situations. In crisis situations, such as the Covid-19 pandemic, employers should quickly plan the division of responsibilities in accordance with the principles of safety and 462 A. Ociepa-Kubicka prevention of infection, and make efforts to restore a normal, healthy rhythm of their company as soon as possible. Therefore, it is necessary to develop and implement new strategies and additional activities to ensure the safety and productivity of people and thus build a business- resilient company. Practical implications: Implementation of a new business model modified by the author of the publication will help new companies build a stable business model that will work in difficult situations such as the pandemic. Originality/value: The research is aimed primarily at owners of family businesses. The added value to the article is an attempt to identify elements of the business model that should be paid special attention to when creating new business models. The operation of business models during the pandemic requires a broader analysis and the presented research results contribute to reducing the cognitive gap in this area. Analysis of business models of the sample companies may constitute an introduction to broader research on the creation of innovative business models that will be able to work in the rapidly changing conditions of the company's environment.