Performance Implications of Business Model Change: A Case Study

Jana Poláková, Gabriela Koláčková and Ivana Tichá
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Jana Poláková: Department of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, Kamýcká 129, 165 21 Praha, Czech Republic
Gabriela Koláčková: Department of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, Kamýcká 129, 165 21 Praha, Czech Republic
Ivana Tichá: Department of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, Kamýcká 129, 165 21 Praha, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2015, vol. 63, issue 6, 2101-2107

Abstract: The paper deals with changes in performance level introduced by the change of business model. The selected case is a small family business undergoing through substantial changes in reflection of structural changes of its markets. The authors used the concept of business model to describe value creation processes within the selected family business and by contrasting the differences between value creation processes before and after the change introduced they prove the role of business model as the performance differentiator. This is illustrated with the use of business model canvas constructed on the basis interviews, observations and document analysis. The two business model canvases allow for explanation of cause-and-effect relationships within the business leading to change in performance. The change in the performance is assessed by financial analysis of the business conducted over the period of 2006-2012 demonstrates changes in performance (comparing development of ROA, ROE and ROS having their lowest levels before the change of business model was introduced, growing after the introduction of the change, as well as the activity indicators with similar developments) of the family business. The described case study contributes to the concept of business modeling with the arguments supporting its value as strategic tool facilitating decisions related to value creation within the business.

Keywords: business model; value creation; performance indicators; structural market changes; small agricultural enterprise (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2015063062101

DOI: 10.11118/actaun201563062101

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