LITTERA SCRIPTA 1 21-Final-Complete-1

LITTERA SCRIPTA
Economics
M Management
Corporate Finance
Finance and
Valuation
Littera Scripta
(Economics, Management, Corporate Finance, Finance and Valuation)
Ing. Veronika MACHOVÁ, MBA (Editor-in-chief)
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ISSN 1805-9112 (Online)
Date of issue: September 2021
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EDITORIAL BOARD
prof. Svetlana I. ASHMARINA
Samara State University of Economics
doc. dr. sc. Mario BOGDANOVIĆ

University of Split, Croatia
Choi BONGUI
Kookmin University
prof. Lisa BURKE-SMALLEY, Ph.D. SPHR

University of Tennessee Chattanooga, USA
PaedDr. Mgr. Zdeněk CAHA, Ph.D., MBA, MSc.

prof. Ing. Zuzana DVOŘÁKOVÁ, CSc.

University of Economics Prague
prof. Allen D. ENGLE, DBA

Eastern Kentucky University, USA
prof. Ing. Jan HRON, DrSc., dr. h. c.

Czech University of Life Sciences Prague
prof. Ing. Jiřina JÍLKOVÁ, CSc.

Jan Evangelista Purkyně University in Ústí nad Labem
prof. Kevin P. KEARNS, Ph.D.

University of Pittsburgh, USA
Prof. Gabibulla R. KHASAEV

Samara State University of Economocs
prof. Ing. Tomáš KLIEŠTIK, PhD.

University of Žilina
József POÓR, DSc.

Szent István University, Hungary
prof. Dr. Sean Patrick SAßMANNSHAUSEN
Regensburg University of Applied Sciences, Germany
Ing. Vojtěch STEHEL, MBA, PhD.

doc. Ing. Jarmila STRAKOVÁ, Ph.D.

prof. Ing. Miroslav SVATOŠ, CSc.

Czech University of Life Sciences Prague
prof. Ing. Jan VÁCHAL, CSc.

prof. Ing. Marek VOCHOZKA, MBA, Ph.D., dr. h.c.

Ing. Jaromír VRBKA, MBA, PhD.

Dr. Lu WANG
Zheijang University of Finance and Economics
prof. Liu YONGXIANG

North China University of Technology, China
prof. Shen ZILI

North China University of Technology
Ing. Simona HAŠKOVÁ, Ph.D.

EDITOR OF JOURNAL
Mgr. Eva DOLEJŠOVÁ, Ph.D.
Content
Specification of product value as a key part of Canvas business 1

model in the context of industry 4.0
Petra Domanižová, Nikola Janíčková, and František Milichovský
Is CarSharing a profitable business model for automotive OEMs? 11

Aljoscha Groos, Zuzana Stoličná
Impact of the coronavirus pandemic on the tertiary sector 28

Jakub Horák, Kateřina Mlsová, Veronika Machová
Customer manipulation during grocery shopping 40

Eva Kalinová, Adéla Vilímková
Comparison of Funding Corporate Education in the Czech Republic 51

in 2016 and in 2021 during the Covid-19 Pandemic
Iva Klementová, Michaela Procházková
Motivated employees as key to success of any organization 61

Viktorie Kováříková, Miluše Balková, Iva Klementová
A historical excursion through the development of cryptocurrencies 71

in the world
Jiří Kučera, Tomáš Andelík
Language courses as tool to motivate employees in South 86

Bohemian enterprises
Monika Lavičková, Monika Peka Kolafová, Libuše Turinská
Transfers of healthcare workers due to the COVID-19 crisis and 107
its impacts
Zuzana Rowland, Zuzana Mlsová, Petr Šuleř
The Development of the Financial Health within the Fishing 123

Industry in the South Bohemian Region
Nikola Sagapova, Josef Gulyás
Leadership Vacuum: Why are there Less Leaders with Disabilities 135
in India?
Ambuj Sharma, Siddharth Shimpi, Reena Malik, Nitu Chouhan
Impact of macroeconomic factors on the MTPL insurance in Latvia 149

Aivars Spilbergs, Andris Fomins, Māris Krastiņš
Littera Scripta, 2021, Volume 14, Issue 1
Specification of product value as a key part of Canvas

business model in the context of industry 4.0
Petra Domanižová2, Nikola Janíčková1, František Milichovský2
1Brno University of Technology, Faculty of Business and Management, Department of Finance

2Brno University of Technology, Faculty of Business and Management, Department of
Management
Abstract
The purpose of this article is to specify the business model Canvas and its
modifications in the manufacturing industry 4.0. The paper provides a review of the
literature to expand our knowledge of how Industry 4.0 affects business models. This
article aims to specify and analyze the Canvas business model and its application in
the new revolutionary era of the digital world in manufacturing 4.0. Also, we defined
the hypothesis that "exist a relationship between market type such specific market
segment) and given value to the customer". The findings deepen the understanding of
how 4.0 affects the manufacturing industry, B.M., and the behavior of the current
economic environment. A lot of research in the field of industry 4.0 using Canvas B.M.,
but very often, the view of the Czech business environment is neglected. Focusing on
this area may lead to future research. This literary review focuses on the latest
literature indexed in the Web of Science and Scopus. The focus is on the period of
2013-2020. The research methodology is based on a comparison of research by other
authors with a focus on industry 4.0 in the Czech Republic and worldwide, on the role
of business models in this sector, and their interconnection. The main results of this
research point to the importance of Industry 4.0 and its implementation, as well as
the need to adapt business models to the needs of this revolution.
Keywords: business models, Canvas business model, Lean Canvas key performance
indicators, manufacturing industry, industry 4.0, Czech Republic digitization,
Industry 4.0.
1
DOI: https://doi.org/10.36708/Littera_Scripta2021/1/1
Introduction
The term Industry 4.0 is already well known in the business environment. Its foundations
were presented in a document at the trade fair in Hannover in 2013. However, the first
ideas about the emergence of a new industrial era appear in 2011, and currently, the
transition of companies to this new era is one of the most critical aspects of the Czech
business environment (Confederation of Industry of the Czech Republic, 2019).
The fourth industrial revolution is a label for innovation and transformation of production
processes. The internet and digitization enable complete interconnection and automation
of all production processes as well as related services. Industry 4.0 brings technological
and social changes. Production productivity increases by up to 30% and up to 40% of
people will have to change their skills, but it does not just change the focus. The process
of product innovation is also undergoing fundamental changes (Technodat, 2018; Koren
and Shpitalni, 2010; Nayak, Dürr and Rothermel, 2015).
Industry 4.0 as such unifies the physical, information, and data components not only of
the production environment itself. It connects machines, storage and logistics systems,
and other technological components into one unit. An entirely digitized automated system
brings significant improvements to all business processes. At the heart of this concept is
the so-called "Smart Factory". This is a critical element of the transition to a digitized and
automated whole. It can autonomously manage and at the same time streamline the
complete production process. The Czech concept of I4.0 is broader than the world
concept. It is not just a Smart Factory, but also a digital environment into which the
company is gradually transforming (Ibarra, Ganzarain and Igartua, 2018; Fettig et al.,
2018; Ematinger, 2017). The Czech concept focuses more on the customer and a smart
product or service (Confederation of Industry of the Czech Republic, 2019).
In the summer of 2019, a survey was conducted, which included 105 Czech companies. In
this survey, the manufacturing industry was represented in 59%, where 50 large
enterprises (more than 250 employees), 31 medium-sized enterprises (50-250
employees), and 24 small enterprises (less than 50 employees) answered questions about
the readiness and implementation of industry 4.0. This survey showed that most
companies have 5% of their budget allocated to activities related to industry 4.0, and this
survey also showed that large companies are more active in this regard. Companies in the
Czech Republic are aware of the benefits that digitization, communication between
systems and devices, and the flow of data to the company in real-time bring them. "Two-
thirds of respondents said they had invested in elements of Industry 4.0 because it is
important for their future. It is quite surprising that only 8.6% of companies feel external
pressure to implement Industry 4.0 applications, whether from parent companies or
customers.", comments Jiří Holoubek, a member of the board of the Confederation of
Industry. It is generally stated that it is large companies, especially from the automotive
industry, that should push their suppliers into the digital transformation. "However, only
36 percent of companies have developed a digital strategy, and in most of the
implemented projects, it is probably more of a non-systematic implementation of isolated
2
partial solutions. It continues to be confirmed that small and medium-sized enterprises,

in particular, need more support in understanding the benefits of digital technologies and
their subsequent deployment. Most often, companies invest in elements of Industry 4.0 to
increase productivity per employee (56.2%), reduce unit costs (43.8%) and optimize the
use of production capacity (41%). For large companies, the motive for reducing costs
prevails. Small and medium-sized companies are mainly trying to increase productivity
by investing in digital transformation. The experience of companies so far shows that
most of their expectations associated with these investments have been entirely, or at
least partially met. Half of the companies want to increase investment in this area in the
next five years (Confederation of Industry of the Czech Republic, 2019).
The Canvas model, therefore, appears to be one of the most suitable business models for
modification to the needs of Industry 4.0. This statement will be confirmed when mapping
the area of knowledge of this topic.
This article is focused on the level of knowledge of the fourth industrial revolution and
the related knowledge about business models, their modifications and uses in I4.0, and on
finding a gap in this area. The outputs of this article will be used as literature research for
a junior project, which will focus on identifying key performance indicators (KPI)
according to their specification and relevance in individual areas of the Canvas model for
the needs of manufacturing in the Czech Republic, where industry 4.0 is already evident.
Measuring performance helps to sort day-to-day activities in the companies.to reach
strategic objectives. But, there is important to divide used metrics correctly. Industrial
companies have different needs what and how to measure performance and effectiveness
and display the results in financial units. The metrics’ group of non-financial displaying
should be included in a group of Key performance indicators (KPI), which are used in the
most crucial fields in present and future development of the company. Therefore, KPI
represents a tool, by which is possible to measure performance, find relevant results, and
interpret them correctly (Zaherawati et al., 2011; Kerzner, 2011; Janíčková and Žižlavský,
2020). All used KPI metrics are depended on industry, corporate strategy, and present
situation. Production companies could create fields according to their interests (e.g. costs,
motivation, quality, or logistics). Individual groups have to be flexible and changeable due
to the needs (Samsonowa, Buxmann and Gerteis, 2009). There is a general
recommendation to keep rule 10/80/10 in each organization. This rule means that the
company should use ten metrics in KRI, eighty metrics in PI and RI, and ten metrics in KPI
(Parmenter, 2010).
Osterwalder, Pigneur and Clark (2012, p. 14) define a business model as the basic
principle by which a company creates, transmits, and receives a value. Canvas The Canvas
business model helps create value for the company. The business model can be described
with the help of nine building blocks, which bring closer the logic of how a company wants
to make money and create value. These elements provide four main areas in the company,
which are: (1) customers, (2) supply, (3) infrastructure, and (4) financial viability. The
3
business model can be understood as a strategic plan to be fulfilled through the

organizational structure, processes, and systems. The building elements include:
1. Customer segments: Customer segments define the groups of people or entities
that a company wants to focus on. Customers are at the heart of any business
model, without which a business would not be able to function for long because
they make a profit for the business. A company can improve customer service by
dividing it into segments according to needs and behavior. The business model can
then define one or more large or small segments. Furthermore, a clear decision
must be made on which segments to focus their efforts on.
2. Value offers: Value offers describe the combination of products and services that
create value for a specific customer segment. The value offer is the reason why
customers prefer one company over another. The offer deals with the customer's
problem or satisfies his needs. Each value offer contains a combination of products
or services that respond to the requirements of the segment. The value offer is
therefore a set of benefits that the company offers.
3. Channels: Channels determine how a company communicates with its customer
segments and how it has access to pass on a value offer. Communication,
distribution, and sales channels form the boundary between the company and
customers. Distribution channels are important points that play a significant role
in customer satisfaction.
4. Customer relations: Customer relationships describe the types of individual
relationships that a company builds within individual segments. The company
should have an idea of the relationship it wants to build with each segment.
Relationships can vary, from personal to automated.
5. Sources of income: Sources of income represent all income that the company
generates within customer segments. If customers are at the heart of the business
model, revenue represents its artery. The company should ask itself the question:
What value is each segment willing to pay for? A successful response allows you to
generate one or more sources of revenue from each segment.
6. Key resources: Key resources describe the key assets needed to operate a
business model. These resources allow you to shape and present value offerings,
reach markets, maintain customer relationships and generate revenue. Depending
on the business model, different resources are needed. Key resources take on
physical, financial, mental, or human forms.
7. Key activities: Key activities characterize the most important assets performed
by the company, which are necessary for the functioning of its business model. Like
the key resources, the key activities are needed to create and present value
offerings, gain a foothold in the markets, maintain good relationships with our
customers, and, last but not least, generate revenue.
8. Key partnerships: Key partnerships refer to the network of suppliers and
partners necessary for the business model to work. Companies establish these
partnerships for several reasons and become the cornerstone of many business
4
models. Partnerships are born, for example, to optimize a model, reduce risk, or
obtain resources.
9. Cost structure: The cost structure represents all costs related to the business
model. Creating and submitting a value offer, maintaining relationships with
customers, and generating revenue generate costs. The costs are relatively easy to
quantify only after identifying key resources, activities, and partnerships.
The role of business models in Industry 4.0 is significant. Every company has a business
model and uses it to manage its processes. Therefore, when introducing Industry 4.0, it is
first necessary to modify the business model to meet the requirements of the Fourth
Industrial Revolution. Many studies from around the world confirm this step and its
importance. Man and Strandhagen (2017) explore how to use business models in Industry
4.0 successfully. The authors created a scheme that connects sustainability and industry
4.0 to the business model (Man and Strandhagen, 2017). This diagram shows figure 1.
Figure 1: Connecting sustainability and industry 4.0 to the business model.
Source: Man and Strandhagen (2017).
The term Industry 4.0 is understood by the European Union (specifically by the European
Parliament) as a term for a group of rapid transformations in the design, production,
operation, and use of systems. Marking 4.0 means that this is the 4th industrial revolution
for the world (European Union, 2015). In general, the Industry 4.0 concept can be
characterized as a transformation of production as separate automated factories into fully
automated and optimized manufacturing environments. Production processes are linked
vertically and horizontally within enterprise systems. Sensors, machines, and IT systems
5
are interconnected within the value chain across enterprise boundaries. For this purpose,
the Cyber-Physical System (CPS) is the cornerstone for smart factories (Kopp and Basl,
2017).
Against these latest research results, we can oppose, for example, the study by Basl
(2017), where the author focused on the readiness of Czech companies for Industry 4.0.
This research was conducted by a questionnaire survey in which participated 161 Czech
companies. The results show that Czech companies have a relatively high awareness of
the existence of a trend known as Industry 4.0. This readiness manifests itself the most at
upper-level management rather than on the average employee level. Companies still lack
their own Industry 4.0 strategy, and they do not have assigned responsible persons who
would take care of further deepening of principles of Industry 4.0. Higher penetration of
the principles of Industry 4.0 into companies is so far inhibited by unclear benefits and in
many cases, the high costs associated with the application of Industry 4.0 solutions.
Industry 4.0 also belongs among the topics that are being strategically initiated and
supported by top management in his visions, motivated by the customer demands, and is
expected to bring lower costs. Finally, the investigation has shown that there is a large
space for improvement in terms of delivery of available information on Industry 4.0 to the
employees. Most companies (56%) stated that their employees are not yet aware of what
this new trend means. Only about 8% of companies reported that Industry 4.0 is already
part of the motivation of their employees (Basl, 2017).
Methods and Data

The purpose of the research as a base for this paper is to find out the literary overview,
then the comparison of the author's views on the use of the business model, innovation,
and adaptation under the influence of digitization. According to the purpose, there is a
defined hypothesis, that "exists a relationship between market type such specific market
segment) and given value to the customer". There were realized two research parts,
secondary research, and primary research. The secondary research was focused on the
analysis of scientific databases such as EBSCO, Science Direct, or Web of Science. Also,
there was processed primary research with a focus on business activities in connection to
the Canvas business model. In primary research participated 422 companies, which
operate in various industries in the Czech Republic. On the defined hypothesis, there was
applied Pearson χ2 test for independence, which provides a potential relationship
between individual variables. These variables as input are defined by (1) types of market
and (2) variables with relevant value for the target segments. We processed the data by
application of statistical software IBM SPSS Statistics 25.
Results
According to the defined purpose and stated hypothesis, there were used two groups of
variables. These groups are closely connected to the individual parts of Canvas. The
6
possibility to deliver required values is usually linked to the market, but under the
condition of industry 4.0 elements, they should be modified. Therefore, we focused on
observing the connection between all of these variables mentioned above:
• types of markets
- specialized
- segmented
- mass
- diversified
- multilateral
• relevant value for the target segments
- newness (different points of views)
- output (improvement of creating products and services)
- adaptation (product and service adaptation to specific needs)
- task solution (creating solution)
- design (part of the offered value)
- brand (part of the offered value)
- price (part of the offered value)
- cost minimization (help to the customer within cost minimization)
- risk minimization (help to the customer within risk minimization)
- availability (assurance of availability of products and services)
- convenience (convenience or easiness of usage)
Due application of chosen method (Pearson χ2 test for independence) we defined 55
possible connections between individual variables (kinds of value and type of market). If
the connection is put under verification and the value of significance must meet the 5%
reliability level. If the value is lower than 0.05 as a response to the limit of 95% confidence
level, then it is possible to declare, that in that relation exists statistical dependence. By
contraries, if the value of significance is higher than 0.05, then the statistical dependence
in the connection is not proved. From defined 55 relations, we found out only 14 relations
with proved statistical dependence. Their results are shown in Table 1.
Because of the results in Table 1, we can say that there exist 14 statistical connections
with statistical significance. The intensity of these connections could be explained by the
due value of the contingency coefficient. The contingency coefficient refers to the power
of the dependence, which belongs to interval 〈0; 1〉. If the value of the contingency
coefficient is over 0.5 and close to 1, the dependence is strong. Vice versa, values under
0.5 are considered such medium or rather low. All gained values of contingency coefficient
for gained relations are in interval 〈0.259; 0.381〉, which mean rather low intensity of
dependencies between proved variables.
7
Tab. 1: Observed dependencies between individual variables and chosen type of market
Specialized Segmented Mass Multilateral
P 46,076 No proven No proven No proven
Output S 0,009 statistical statistical statistical
C 0,319 significance significance significance
P 69,118 No proven 59,959 33,397
Adaptation S 0,000 statistical 0,000 0,003
C 0,381 significance 0,359 0,276
P 48,646 44,235 39,270 No proven
Task solution S 0,005 0,014 0,035 statistical
C 0,327 0,313 0,297 significance
P No proven 42,465 No proven No proven
Design S statistical 0,022 statistical statistical
C significance 0,308 significance significance
P 40,417 No proven No proven No proven
Brand S 0,035 statistical statistical statistical
C 0,301 significance significance significance
P 44,400 No proven No proven 29,129
Risk
S 0,014 statistical statistical 0,010
minimization
C 0,314 significance significance 0,259
P 56,618 43,658 No proven No proven
Availability S 0,000 0,016 statistical statistical
C 0,350 0,312 significance significance
P No proven 40,665 No proven No proven
Convenience S statistical 0,034 statistical statistical
C significance 0,302 significance significance
P - Pearson chi-square; S – Significance; C - Contingency coefficient
Source: own work of authors
Conclusion
Based on the literature research performed in this article, the level of knowledge in the
monitored area was mapped in some detail. The results show that although the readiness
of Czech companies for Industry 4.0 has significantly improved in recent years, there is
still ample space for improvement. Businesses face significant obstacles to the
introduction of new technologies and the overall unification of new knowledge with the
traditional systems they have used so far.
This research will make it easier for many companies to implement Industry 4.0 and can
deepen their scientific knowledge in this field. This connection will expand, simplify and
improve the ability of companies operating in the manufacturing industry and at the same
time in the Czech business environment to implement the concept of industry 4.0 This
research will combine several methods that will provide many companies with this type
of industry revolution.
8
Due to the breadth of the researched topic, there are many topics to discuss. Industry 4.0
concept has already penetrated some industries. As for the Czech Republic, the
automotive and manufacturing industries are the best. Even there, however, companies
are just beginning to work with the new concept, eliminating shortcomings and trying to
meet the implementation of this system with as few obstacles as possible. Among other
things, many other industries are not yet so far in implementing Industry 4.0 and need
help with system modifications that will be tailored to their industry. All the knowledge
that we know so far becomes with a certain degree of superficiality, and therefore it is
important to focus research more in-depth on these topics and to expand knowledge in
this area with greater detail.
The main limitation of this research is the overall diversity and significant differences in
the levels of the manufacturing industry of the Czech Republic. Therefore, we first focused
on the most advanced areas where Industry 4.0 is already implementing into companies.
These businesses need our help immediately and indispensably to be able to connect their
traditional methods, systems, and models with new technologies while still being able to
measure their performance effectively.
Acknowledgment
The author would like to thank the Internal Grant Agency of University No.: FP-J-20-6445
Identification of key performance indicators in the Canvas business model in the Czech
business environment for the manufacturing industry 4.0 for providing financial support.
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Contact address of the authors:

Ing. Petra Domanižová, Department of Management, Faculty of Business and
Management, Brno University of Technology, Kolejní 2906/4, 612 00 Brno, Czech
Republic, [email protected]
Ing. Nikola Janíčková, Department of Finance, Faculty of Business and Management, Brno
University of Technology, Kolejní 2906/4, 612 00 Brno, Czech Republic,
[email protected]
Ing. František Milichovský, Ph.D., MBA, DiS., Department of Management, Faculty of
Business and Management, Brno University of Technology, Kolejní 2906/4, 612 00 Brno,
Czech Republic, [email protected]
10
Is CarSharing a profitable business model for automotive

OEMs?
Aljoscha Groos1, Zuzana Stoličná1
1Comenius University Bratislava
Abstract
CarSharing is seen as one of the four major trends in the automotive industry. The
ever-increasing traffic volume in large cities, easier access to digital services through
smartphones and the change in people's ecological thinking are seen as drivers for
this business segment. Nevertheless, the German car manufacturers BMW and
Daimler, normally competitors in the market, have joined forces in a joint venture
(ShareNow) in the hope of being finally profitable. The venture does not release any
information about their business figures and also in the literature there is so far no
detailed analysis of the costs for operating a Free-Floating CarSharing company. This
article will therefore use the Munich-based company ShareNow as an example to
determine the cost structure and examine the non-monetary benefits for car
manufacturers in addition to the monetary side. The analysis indicates that this
business cannot be operated profitably and that even considering the non-monetary
benefits, remaining in this business segment is questionable.
Keywords: car sharing, free floating, automotive, business model, cost structure
Introduction
We are in a time of change that affects the classic automotive industry in particular. Cities
are struggling with strong growth and an ever-increasing traffic volume, which is
accompanied by high emission levels. As a result, governments have to develop new
mobility concepts to reduce the number of vehicles on the roads. At the same time, the
smartphone has become the daily companion of most people and has never offered such
easy access to digital services. In addition, it is increasingly important for people to act
ecologically. Automotive OEMs have seen this change and are trying to expand their
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business with CarSharing models. And the media also believes that car sharing is the
solution to the mobility problem in cities, with headlines such as "Owning a Car Will Soon
Be as Quaint as Owning a Horse" (Swisher, 2019).
Extensive literature research shows that mobility services and, above all, car sharing is
considered by experts to be one of the four major trends of the future in the automotive
industry.
If this sector is so promising, the question arises as to why companies are withdrawing
from existing territories or stopping entirely. ShareNow has completely withdrawn from
America and Canada in 2020. They have also discontinued their services in the European
cities of London, Brussels and Florence. But it's not just German OEMs that seem to be
struggling with profitability. American automaker General Motors has also completely
discontinued its "Maven" service after original reductions in cities. Ford has also
discontinued its "Chariot" service in 2019.
The purpose of this paper is to investigate whether CarSharing can be considered a
profitable business segment for traditional automotive OEMs. For this purpose, the
company ShareNow, a holding of the companies Daimler and BMW, will be used as an
object of investigation. The reason for this is that, compared to the VW company WeShare,
it is an established company with a nationwide offering and a diversified vehicle portfolio.
The operators do not reveal their business figures and therefore it is difficult to make
financial analyses. Based on interviews, however, it is becoming clear that this is a
negative business model for the companies and even as a joint holding company,
supported by the large companies BMW and Daimler, the continuation of the business is
questionable. So Daimler boss Ola Källenius said in an interview that Daimler and BMW
have already invested a lot and the cash flows must become positive in perspective,
otherwise it must be reacted. There are also rumors that the two companies are already
in negotiation talks with UBER for a deal (Kaleta, 2020).
Methods and Data

The first step is to investigate the relevance of mobility services, or more precisely
CarSharing, for the automotive industry in a literature review. Annual reports and
newspaper interviews of the car sharing companies WeShare, DriveNow, Car2Go and
ShareNow were then analyzed to provide information on the business model, vehicle fleet,
user numbers and cost structure. Based on this information, a cost calculation for the
operation of the vehicle fleet is calculated and it is deduced whether and how a CarSharing
company can be profitable. The classic break-even analysis is used as an orientation aid.
In addition, user surveys and statistics on the behavior of CarSharing customers are
examined in order to be able to make statements and recommendations for action.
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CarSharing
CarSharing is divided into three different business models. They can be well distinguished
by the degree of flexibility. The three models are peer-to-peer car sharing, stationary car
sharing and free-floating car sharing (Schiller, Pottenbaum and Scheidl, 2017).
In Peer-to-Peer CarSharing, private individuals can offer their car to other members via a
platform. Users have to pay a daily fee and can use the car. This concept is very similar to
the traditional concept of car rental companies. It represents a small percentage of
providers (6%) and is only available in 19 countries (No Name, 2019b). Automotive OEMs
are not represented in this business segment. A large provider for this type of car sharing
is the U.S. company Turo.
Stationary CarSharing is the most widely distributed service in Germany in terms of area.
The largest provider in terms of fleet size is Stadtmobil (No Name, 2021a). In this variant,
there are fixed parking spaces where the vehicles are parked and have to be picked up. At
the end of the rental, they must then also be returned there. It is primarily designed for
longer rental periods and the car can be booked days in advance. German car
manufacturers are not represented in this area either.
The model with the highest flexibility is called Free Floating CarSharing. The customer can
pick up and park the car wherever he or she wants in a specific business area. It is often
also possible to park the car outside the business area against a service fee. This service
is mainly used for spontaneous and relatively short trips, as a longer rental period is not
profitable given the comparatively high rates. This business area is covered by the
German automotive OEMs.
Relevance of CarSharing for Automotive OEMs
The 21st century can be described as an era of constant disruption (Kumaraswami, Garud
and Ansari, 2018). In this time, constant technological innovations often driven by digital
revolutions such as Web 2.0 (Belk, 2014) are challenging existing business models and
opening up entirely new business options. In addition, there is an increasing mindset change
among customers away from owning goods to "access-based consumption." This means that
transactions are mediated in which there is no transfer of ownership (Bardhi and Eckhardt,
2012). In contrast to the usual model of selling an object with an accompanying transfer of
ownership, services or objects are rented or shared for a limited period of time.
Mobility as a Service and CarSharing have been discussed in the literature for years as an
important trend for the future of the automotive industry. In the Gear 2030 Report of the
European Commission, it is made clear that due to a changed concept of mobility, mobility
services are crucial for the competitiveness of the automotive industry and the EU
(Asselin-Miller et al., 2017). PwC makes the assumption in its paper that automotive
compies need to offer mobility as a service to compete against their competitors in the
field. Otherwise, they would become suppliers to the large mobility service providers.
They predict a shift to sharing cars and OEMs that cannot compete with the big tech
companies face the risk of being taken over by them (Weber et al., 2018).
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McKinsey predicts that nearly one in ten vehicles sold in 2030 will be a shared vehicle
(Kempf et al., 2018).
Car sharing in combination with autonomous vehicles are seen as an important step to
relieve the infrastructure in the future (Rea et al., 2017; Scott and Pankratz, 2017).
In addition, it is repeatedly predicted that the sale of vehicles will decline in the future due
to car sharing and that automotive companies should therefore not lose focus on this
business segment. Responsible for this is also the changed mindset of customers that
access to a vehicle has become more important than ownership. New mobility providers
like Uber and tech giants like Apple and Google are forcing established OEMs to expand
their business (Kaas et al., 2016).
Kuhnert, Stürmer and Koster (2018) predicts that the future car in 2030 will be electrified,
connected, shared, autonomous and yearly updated.
As early as 2012, CarSharing was seen as a potential growth driver for automotive OEMs
and even considered to be a must for OEMs in the future. Great market growth
opportunities were foreseen and a winner takes it all scenario was drawn up. Which means
that the strongest supplier in a city will displace all other suppliers (Cornet et al., 2012).
Helbig, Sandau and Heinrich (2017) have predicted that in 2025 vehicle sales may decrease
by 10% due to car sharing and therefore OEMs should make their own offer in the area.
Through the extensive literature review, it is clear that car sharing is considered as an
important trend for the automotive industry. Following the previous statements, it would
be almost irresponsible for an OEM not to enter this business field.
Overview of the Car Sharing companies owned by Automotive OEMs
In Germany, all automotive OEMs have an offering in the car sharing business. While
ShareNow is a holding of BMW and Daimler, ShareNow is a business unit of VW.
ShareNow
ShareNow is a joint venture between the then competing companies car2go (Daimler) and
DriveNow (BMW), founded in 2019, and the global market leader in flexible car sharing.
The two companies invested a total of $1.13bn in the merger, according to media
information (Hawkins, 2019).
Car2go was officially launched in 2010 and offered its service in 26 metropolitan areas in
Europe, North America and China with over 14,000 Mercedes-Benz and Smart vehicles. It
was a 100% subsidiary of Daimler AG, unlike DriveNow (No Name, 2019e). Already in
2017 it was the market leader in Europe and North America with 24 million vehicle
rentals and 1.97 million users worldwide (No Name, 2018). In 2018 the numbers
increased to 3.6 million users worldwide with 25 million rentals (No Name, 2019d).
DriveNow was founded in 2011 as a joint venture between BMW and Sixt and started
operations in Munich in the same year. In March 2018, it became a 100% subsidiary of
BMW. The service was offered at twelve locations in Europe with over 6,500 BMW and
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Mini vehicles (No Name, 2019e).

ShareNow significantly reduced the number of cities after its formation and is currently
present in 16 major European cities in 8 countries. All locations outside of Europe have
been discontinued. At the end of 2020, according to the company, 3 million customers
were registered (No Name, 2021d). The fleet was reduced from approximately 18,820
vehicles (of which 3,130 electric) 11/2019 to 11,340 (of which 2,890 electric) vehicles
01/2021. It includes BMW, Mercedes Benz, Fiat, Mini and Smart vehicles.
WeShare
WeShare is a subcompany of VW and has started its operation in July 2019 in Berlin. The
big difference between it and ShareNow is that WeShare operates a fully electric fleet with
e-Golf and ID.3 while ShareNow has reduced the number of electric vehicles in their fleet.
So far, the company has focused on Berlin as its only location. An expansion was planned
to seven other cities in Europe in 2020. The fleet planned to increase from the current
1,500 vehicles in Berlin to a total of 8,400 vehicles. In Prague and Budapest, the company
was planning to cooperate with Skoda. However, due to Corona, these plans were
temporarily postponed (Automobilwoche, 2020).
Results
The costs for a CarSharing company, including their determination, are presented below.
The calculations are based on the Munich location. The fleet size and distribution are then
determined and the average time of use and frequency are examined.
Cost Overview
The costs for operating a CarSharing fleet consist of fixed costs, variable costs and special
costs. Table 1 provides an overview.
Tab. 1: Cost overview

Fixed Costs Variable Costs Special Costs
Car Leasing/Purchase Fuel Damages
Hardware/Software Service costs for refuel Service costs for reparking
Parking costs Service costs for cleaning
Overhead Employees
Vehicle Tax
Insurance
Source: Authors.
Vehicle Costs
The largest part of the fixed costs for the business model are the costs for the vehicles. It
can be assumed that automotive OEMs have a cost advantage over their competitors here.
However, in an interview, Sebastian Hofelich, CEO of DriveNow, reported that DriveNow
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leases the cars already equipped with the necessary software and hardware from BMW
for one to two years, "at standard market conditions" (Goldmann, 2018).
Based on this statement, it is assumed that this procedure has not changed after the
merger into ShareNow. In addition to the leasing rates offered directly by the
manufacturer, the rates offered by comparison portals on the Internet for commercial
customers were also examined. For the further calculation the most favorable rates of
leasing contracts over 2 years and 20,000 km are used. Electric vehicles currently receive
a subsidy of €6,000, which is included in the calculation.
Hardware/Software Costs
Another fixed cost item is the cost of the hardware and software for the vehicles in order
to make them available to customers (booking and opening via app, reading out the fuel
content, etc.). It was not possible to obtain costs for this from the company ShareNow. For
this reason, a comparable system from the company getaround is used. This company
charges 29€ per month for the operation of the system, each additional car costs 19€ (No
Name, 2021b).
Parking Costs
In Munich, parking costs are set at a fixed rate of 1,000 euros per vehicle per year
(Goldmann, 2018). In Hamburg, on the other hand, a fee of 900 euros per vehicle per year
has been agreed. Electric vehicles are excluded from the fees in this city. In contrast, there
are parking fees of more than 100 euros per car and month in Berlin for all vehicles
(Mortsiefer, 2020).
Overhead employees
To run a company more than just the vehicles and software/hardware are needed.
ShareNow has a total of over 500 employees in various areas that are required for a
company (e.g. marketing, business administration, software developer ...). A large block is
accounted for by the fleet managers, who take care of the control of the vehicle fleet.
Salaries are not public, but users can enter their salary on the platform "Kununu". While
fleet managers earn an average of 32,700 euros, software developers earn 65,500 euros
(No Name, 2021c). With a usual company structure, an average salary of 42,000 euros can
be assumed. These employees are calculated down to the current 11,340 vehicles.
Insurance
The cost of insurance is a critical issue. Due to the large number of users, there is a high
risk of damage. The service can only be used from the age of 21, and the customer must
hold a driver's license for at least one year. Inquiries with the insurance companies were
not answered, so the usual market costs for insurance with a similar range of coverage
were assumed.
Vehicle Tax
The tax of the vehicles is based on the engine capacity, the exhaust emission standard and
the CO2 emission. Electric vehicles are exempt from the vehicle tax
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Fuel Consumption
First of all, the average fuel consumption for the individual models is determined. Real
data reported by a large number of users of the platform "Autokostencheck.de" is used to
determine the average fuel consumption for each model. The reason for this is that these
values are more realistic than the values provided by the manufacturers under laboratory
conditions. In addition, it can be assumed that consumption is generally higher than for a
non-CarSharing car, since almost only short distances are driven and users tend not to
look at fuel consumption during their journey. The reason for this is not only the fun of
driving and the "all-inclusive idea", but also the minute-by-minute billing, which leads to
an effort to quickly end the rental process.
The consumption per minute can now be calculated down to the minute using the average
speed in Munich. According to a study by HERE from 2019, the average speed in Munich
over the course of the day is approx. 41km/h. It should be noted that this is an overall
view of Munich. At rush hour and on the busiest streets in Munich, the average speed
decreases significantly. On weekdays between 4 and 5 p.m., for example, it is only
20.5km/h for a busy street in Munich (No Name, 2019c).
Since most CarSharing users also travel during rush hours and in the central area
(typically the business area), it can be assumed that the average speed is lower. Based on
this evaluation, an average speed of 35km/h is assumed. With this information, an
average consumption per minute can be calculated for the respective fleet model. Using
the average gasoline price in 2019 of 143.2 cents, the cost per minute can also be
determined. The year 2019 is taken as a reference, since Corona has reduced the gasoline
prices above average (Hohmann, 2021). For the costs per Kwh, the common ChargeNow
costs of 0.28 euros are used.
Service costs for refuel
There are incentives in the form of credits for customers if they refuel the vehicle
themselves. Since the incentives are comparably low (5 Euro credit corresponds to 17
minutes of driving time on average) and most users use the car to get from A to B quickly
(Ruhrort, 2020), it is assumed in the calculation that every vehicle must be refueled by
the service employee. The refueling process is carried out when there is still 50km
remaining range in the tank (warning message appears in the cockpit).
Vehicle Allocation
According to a Forsa study, cars in the free floating concept must at best be within a walking
distance of 5 minutes (Weimer, 2016) . This results in a converted distance of approx. 500m.
ShareNow does not provide any information about the exact distribution of its vehicle fleet
per city. The only indication is that 200 of 1,200 vehicles in Munich are i3s. In Munich, the
available vehicles were therefore evaluated via app over several days and a percentage was
calculated. Due to the currently prevailing exit restriction by Corona from 9 p.m. in Munich,
it can be assumed that almost all vehicles are unused from 11 p.m. onwards. By looking at
the data over several days, isolated deviations can be smoothed out.
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Costs / revenues not considered

Set Up and finish time
One minute could be added to the revenue for getting in and setting up the vehicle and one
minute for the locking process. During this time, the vehicle is at a standstill and therefore
the minute tariff can be charged in full, without deducting variable costs. However, the
share of the total turnover is so small that this is not considered for the sake of simplicity.
Damages
The damages are covered by the insurance. The drivers have to pay the deductible. It is not
considered here that many users do not report the damage and therefore these cannot be
accounted to them. Furthermore, it is not considered that the car manufacturers can repair the
damages much cheaper than other CarSharing providers. This could result in a positive asset
for the manufacturers. However, this item is not considered due to the uncertain data situation.
Service for relocation and cleaning
If the car is parked outside the business area, the customer must pay a fee of
approximately 10 euros. It can be assumed that this fee on average covers the cost of re-
parking. In addition, costs are incurred by re-parking to ensure even distribution in the
business area. Further costs arise from the regular cleaning of the vehicles inside and out.
Unavailability due to repair or technical problems
Not all vehicles are available at all times. Reasons for this can be workshop stops or also
technical problems.
Break Even Analysis
The costs are presented divided into fixed (Table 2) and variable costs (Table 3). This is
followed by the calculation of the break-even point from when the vehicle generates a
profit (Table 4).
Tab. 2: Fixed Costs

Hard-/
Leasing Vehicle Parking Overhead Vehicle
Software Insurance
costs costs/ costs/ employees tax/ Total [€]
costs/day /day [€]
(total) [€] day [€] day [€] /car day [€]
[€]
Mini 8,352.00 11.44 0.05 II.74 5.00 0.37 2.53 22.13
Smart 4,100.00 5.62 0.05 II.74 5.00 0.07 1.78 15.26
1 series 9,425.76 12.91 0.05 II.74 5.00 0.27 3.01 23.98
X1 11,736.00 16.08 0.05 II.74 5.00 0.23 3.15 27.25
2 series
16,944.00 23.21 0.05 II.74 5.00 0.53 3.25 34.79
conv.
2 series
10,920.00 14.96 0.05 II.74 5.00 0.23 3.15 26.13
tourer
A-class 9,700.00 13.29 0.05 II.74 5.00 0.27 2.74 24.09
Fiat 500 3,650.00 5.00 0.05 II.74 5.00 0.07 1.77€ 14.63
i3 7,176.00 10.88 0.05 II.74 5.00 0.00 2.49 21.17
Source: Authors.
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Tab. 3: Variable Costs

Fuel Fuel minus Refuel
consump. Fuel Fuel Service Fuel 50km Fuel costs
/100km /minute /minute Refuel tank remaining range /minute Total
[l] [l] [€] [€] [l] [l] [minutes) [€] [€]
Mini 7.1 0.04 0.06 9.5 44 40.5 974 0.010 0.07
Smart 5.8 0.03 0.05 9.5 28 25.1 740 0.013 0.06
1 series 7.4 0.04 0.06 9.5 50 46.3 1070 0.009 0.07
X1 8.1 0.05 0.07 9.5 51 47.0 991 0.010 0.08
2 series
conv. 7.9 0.05 0.07 9.5 52 48.1 1040 0.009 0.08
2 series
tourer 7.5 0.04 0.06 9.5 51 47.3 1077 0.009 0.07
A-class 7.5 0.04 0.06 9.5 51 47.3 1077 0.009 0.07
Fiat 500 5.1 0.03 0.04 9.5 35 32.5 1088 0.009 0.05
i3 18.5 0.11 0.03 9.5 42.2 33.0 305 0.031 0.06
Source: Authors.
Tab. 4: Break Even

Total fixed Total variable Rental charge Var. Profit / BE
costs [€] costs [€] /minute [€] minute [€] / minutes
Mini 22.13 € 0.07 € 0.28 € 0.21 € 105
Smart 15.26 € 0.06 € 0.19 € 0.13 € 119
1 series 23.98 € 0.07 € 0.31 € 0.24 € 100
X1 27.25 € 0.08 € 0.34 € 0.26 € 104
2 series conv. 34.79 € 0.08 € 0.34 € 0.26 € 131
2 series tourer 26.13 € 0.07 € 0.31 € 0.24 € 110
A-class 24.09 € 0.07 € 0.31 € 0.24 € 101
Fiat 500 14.63 € 0.05 € 0.19 € 0.14 € 106
i3 21.17 € 0.06 € 0.31 € 0.25 € 85
Source: Authors.
Frequency of use and duration

To determine profitability, it is important to know the behavior of the customers. It is difficult
to get usage data from companies regarding frequency and duration of trips. Often, long-term
rentals are included in the figures. However, these should not be included here in the financial
analysis, as the cost structure is different. The following studies were selected because they
seem to make the most sense in terms of their data base. Hülsmann et al., (2018) created a
relatively recent study whose results were obtained through control group surveys with the
result that the average frequency per user is less than once a month. The study by Ruhrort
(2020) is based on real booking data from WeShare in Berlin. The result is that 2/3 of the trips
are under 30 minutes and 1/3 are over 30 minutes. Furthermore, it is relevant to look at the
general average trip duration in Munich independently of CarSharing. The Mobility Study
Munich results in an average of 31 minutes and 12.5 km (Follmer and Belz, 2018). An analysis
conducted in cooperation with BMW and based on real booking data showed that each user
makes 0.8 bookings per month and the average travel time is 29 minutes (Kopp, 2015). A press
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release from ShareNow (Süddeutsche Zeitung, 2020) mentions an average of 35 minutes

(including long-term rentals) and 25 million rentals with 4 million customers. This results in a
monthly booking per customer of 0.5 bookings. Based on these evaluations, an average
duration of 30 minutes and a usage of one rental per customer per month is assumed.
Discussion
Based on the calculated costs, it can be seen that the majority of the fixed costs fall on the
vehicle. It is unclear why the automotive OEMs have opted for the leasing model at
standard market conditions. It should be possible to provide the company's own vehicles
much more cost-effectively, thus giving up a competitive advantage over other operators
of Free Floating CarSharing. The next most significant cost driver is the apportioned
employee costs for operating the business. In addition to insurance, parking costs are a
high cost block. As already described, the costs here differ depending on the city.
The variable costs arise primarily from fuel consumption and service with regard to
refueling and recharging the vehicles.
The break-even point is different for each vehicle (Table 5). Due to the incentives for
electric vehicles, the i3 can be leased relatively inexpensively and is exempt from vehicle
tax. Due to the attractiveness of electric vehicles, a comparatively high rental fee of 0.31
euros can be realized. Although the pure energy costs per minute are the lowest of all the
vehicles offered, the use of a service employee is necessary for charging due to the shorter
range. In total, however, the variable costs for the i3 are the lowest after the Fiat 500.
Thus, the i3 already reaches the break-even point on the day with 85 minutes. With an
average booking time of 30 minutes, slightly less than 3 bookings are required per day.
The smallest and cheapest vehicles stand out with comparatively high break-even values.
While the Smart has to be booked for 119 minutes per day, the Fiat 500 has to be booked
for 106 minutes. The reason for this quite high value, despite the low fixed and variable
costs, is the very low price per minute of 0.19 euros.
Tab. 5: Break Even Bookings

BE / minutes BE Bookings /day Cars in Munich Total Bookings
Mini 105 3.5 229 802
Smart 119 4.0 328 1299
1 series 100 3.3 42 141
X1 104 3.5 42 145
2 series conv. 131 4.4 36 157
2 series tourer 110 3.7 78 285
A-class 101 3.4 34 115
Fiat 500 106 3.5 210 738
i3 85 2.8 200 568
Source: Authors
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An important issue for profitability is vehicle utilization. For the requirements of the free
floating concept it is necessary that there is always a vehicle within walking distance. As
mentioned above, at best within a 5 minute radius. This results in the necessity of a large
vehicle fleet with the risk of underutilization. Putting the vehicles in relation to the
required break-even trips per day results in the required number of 129,295 monthly
bookings for Munich.
It was not possible to obtain ShareNow users' data for Munich. In 2019, however, there
were around 250,000 users registered with the various providers in Munich (Engels,
2019).
An approximation of the possible user group makes sense in order to get an indication of
the profitability. First, it needs to be determined how many people are living in the so-
called hot spot areas. These areas usually coincide with the provider's business area.
Stolle et al., (2019) has calculated a figure of 422,000 people in the area in the case of
Munich. Next, the relevant target group must be extracted. According to the city of Munich,
approximately 70% are between the ages of 20 and 69 (No Name, 2019a). This results in
a potential user number of 295,400 people.
If we now take the average booking of one per customer and month for calculation
purposes, 44% of these people would have to be ShareNow customers.
Even though there is no data from ShareNow regarding the number of users per city, it is
clear that it is unlikely that this model can be operated in a profitable way. Munich is also
a city with good operating conditions. On the one hand, it has a high income structure and
a relatively central cityscape. It can therefore be assumed that the break-even analysis is
weaker in for example Berlin. Another risk is that new competitors in the cities will take
users away. The relatively constant number of potential customers is confronted with an
increasing number of vehicles and providers.
Non-monetary benefit for the OEMs
In addition to the purely financial aspects, there are also non-monetary factors that can
make a case for operating a CarSharing fleet. They will be examined and evaluated in more
detail below.
Awareness of technical innovations
Contact with the latest technology can create a desire or need among users of the vehicles.
Often the current technical developments of the manufacturers are not known. Without
the knowledge of, for example, a Stop&Go assistant that brakes and starts automatically,
there is also no desire on the customer's part. A changed interior design or cockpit can
also make their own car look outdated (Kaas et al., 2016).
Brand Image
Companies are always concerned with creating a positive image among their customers.
Especially for automotive companies it is important to appear modern, innovative and
agile. The brand image could be positively influenced by CarSharing, because this is
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associated with sustainability and it also shows that the company is not trapped in its
classic old thought patterns, but is open to new trends. On the other hand CarSharing is
no longer a new concept, but has existed for years. In addition, more and more
competitors are entering the market that offer the same service and are not automotive
OEMs. For this reason, it can be assumed that car sharing has no special influence on the
brand image.
Attracting new customers
Another advantage that can be considered is that by using the vehicles new customers can
be attracted and companies can reduce the advertising budget. BMW had gross
advertising expenditure of around 1 million euros in Germany in 2019 (Weidenbach,
2021). With a total of 329,262 vehicles sold, this amounts to just under 3 euros in
advertising per vehicle sold (Immen, 2020). This amount does not seem to be a decisive
factor in the decision to operate a CarSharing fleet.
By having their own carsharing fleet, young people in particular who do not yet own a
vehicle can be branded early on so that the manufacturer is at least considered when
purchasing a vehicle in the future. In addition, carsharing rides are an easy way to
experience the cars. While customers used to have to go to the dealership and convince
the salesperson that they want to buy the car, a test drive with the nearest car can be
booked very flexibly and inexpensively. Electric cars in a carsharing fleet can help change
people's mindset by getting them used to driving an electric vehicle and reducing any
prejudices they may have. Looking at the current fleet, it is dominated by inexpensive
vehicles such as Smart and Mini. The number of 1-series and A-class models is very low,
and most recently the Fiat 500, a foreign brand, was added to the fleet. It seems that the
advertising impact of car sharing is no longer the focus of the manufacturers
Data Collection
The collection of data is another advantage that should not be underestimated. Short
journeys with permanently changing drivers put extreme stress on the car and thus
represent a good test in terms of durability and possible faults. This data can be used in
future product developments. Furthermore, customer behavior provides important
information on how often which functions and services in the vehicle are used. Feedback
from the predominantly younger Car-Sharing customers also provides important
information for the development of new products. Since the younger customer group does
not usually drive premium vehicles, it is difficult to obtain feedback from interaction with
the vehicle in the conventional way. However, since the younger generation are the
buyers of tomorrow, it is fundamentally important to know which things are valued and
which features or functions are not of great importance.
Fleet bonus with electric vehicles
The use of compact and electric cars helps OEMs meet their CO2 fleet targets and thus
avoid penalties. Due to the continuous expansion of the range of electric vehicles and the
increasing sales figures, this point will become less important in the future.
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Compensation for declining demand

In the previous literature review, CarSharing was seen as a compensation for the
decreasing number of possible car sales in the future. The reason for this is that more and
more people no longer see the need to own a vehicle. This argument can be refuted, at
least for Germany, with regard to new registrations in Munich, where DriveNow has been
available since 2011. New registrations are growing continuously and more strongly than
the growth of the population (No Name, 2020).
Conclusion
Based on the analyses and the consideration of the non-monetary benefits for a
CarSharing business, the model does not appear to be profitable in the long term. The
reasons for this are, on the one hand, the high vehicle costs due to the use of premium
vehicles. On the other hand, there are the low-cost vehicles from Smart and Fiat. Although
their fixed costs are lower, they can only achieve a significantly lower rental price. Due to
the existing competitors, companies are also forced to offer low prices in order not to lose
customers. With these vehicles, however, many non-monetary advantages are no longer
available. In general, a certain fleet size is necessary to operate Free Floating CarSharing.
If the vehicles are underutilized, it makes more sense to maintain a large share of vehicles
with low fixed costs.
Another important aspect is the support of the government in the respective cities. Too
much bureaucracy, for example, in registering vehicles in certain urban areas, or high
costs in the form of parking fees or congestion charges can very quickly make the entire
business model unprofitable.
Due to the very low margins, it is important to gain as many customers as possible that
use the offer regularly. Due to increasing competition in this field and a relatively fixed
maximum value of possible customers, it appears difficult to further increase the number
of customers. In contrast, there is more of a risk that existing customers will switch to
other providers or take the closest car regardless of the provider.
The calculations have shown that the currently most lucrative option for the CarSharing
provider is in the area of electric vehicles. Due to the various subsidies, they are currently
relatively inexpensive. They also attract customers who are willing to pay more for the
experience. According to a study, 66% of customers who signed up with car2go in
Stuttgart did so in part to try out an electric car (Hülsmann et al., 2018). However, this
advantage may be overturned as soon as the subsidies are reduced. In addition, there is a
risk that many customers only want to have the experience of driving an electric car once
and will return to the less expensive alternatives for further trips. With regard to
production capacities, the automotive OEMs must also consider whether electric vehicles
should not be sold instead. If the number of electric vehicles in a city is too high, there may
also be problems finding charging stations. Blocking charging stations with fully charged
vehicles that are not driven away can have a negative impact on the company's image. The
23
range plays another important role. The i3 is a vehicle with a comparatively short range.
This leads to higher service costs for recharging the vehicles. However, if vehicles with a
range similar to conventional vehicles are used, the economic benefit is even greater. In
addition, the operation of electric vehicles provides important data for the still relatively
new technology of the automotive industry.
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Dipl. Wirt.-Ing. Aljoscha Groos, Department of Economy and Finance, Faculty of
Management, Comenius University in Bratislava, Odbojárov 10, 820 05 Bratislava, Slovak
Republic, e-mail: [email protected]
doc. Ing. Zuzana Stoličná, Ph.D., Department of Economy and Finance, Faculty of
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27
Impact of the coronavirus pandemic on the tertiary sector
Jakub Horák1, Kateřina Mlsová1, Veronika Machová1
1Institute of Technology and Business in České Budějovice, School of Expertness and

Valuation
Abstract
The tertiary sector, also referred to as the services sector, is the most affected sector
during the coronavirus crisis. The aim of this paper is to analyze and describe the
economic and existential impacts of COVID-19 on this sector worldwide, caused by
government interventions and government regulations. To achieve this goal, a self-
administered questionnaire survey dealing with companies in the Czech Republic is
produced and an existing questionnaire survey by Alonso et al. (2020) dealing with
companies in the world is analyzed. Both questionnaires deal with the impact of the
COVID-19 pandemic on companies operating in the hospitality sector, the biggest
concerns of these companies and their coping with this situation. Companies are most
concerned about the financial impact on their business and the uncertainty of what
will happen next and how long the pandemic will last. Companies both in the Czech
Republic and around the world are dealing with the pandemic in a similar way - by
laying off their employees, moving them to other positions or working from home,
suspending their activities and waiting for further government action or terminating
business activities altogether.
Keywords: COVID-19, tertiary sector, hospitality, pandemic impact, activity change
Introduction
The global coronavirus pandemic affects not only our personal lives but also our economy.
The tertiary sector or services sector, which includes, for example, trade, education,
hospitality, transport and communications, healthcare or information, administrative,
financial and insurance services, has the greatest influence. The services sector represents
a significant part of the national economy. The Czech Statistical Office (2020) states that
service providers have a 61.9% share in the gross domestic product (GDP) in 2018 of our
country.
28
Due to the coronavirus crisis, many people have been forced to move to a home office,
change jobs or leave work altogether. The transition to home office has its advantages and
disadvantages (Chanana and Sangeeta, 2020). For some, working from home can be
beneficial, for example for parents of young children who cannot go to school at this time.
Conversely, the disadvantage may be that when working from home, employees may
perform only limited work tasks (Koohsari et al., 2021).
Due to the state of emergency and the measures introduced by the government, many
entrepreneurs had to close their business. So who is most affected by the coronavirus
crisis in the services sector and how? In this sector, it mainly concerns operators of
restaurants, accommodation facilities, hotels or organizers of mass events.
Tourism occupies a very important position in the tertiary sector. It is particularly
sensitive to measures against a pandemic, due to limited mobility and social distancing.
Due to travel restrictions and lockdowns, global tourism has slowed significantly and the
number of global flights has dropped by more than half. As the number of infection cases
grew, travel bans grounded a growing number of carriers (Gössling, Scott and Hall, 2020).
Hospitality is a basic branch of tourism. It employs millions of people and contributes
hundreds of billions of dollars to the global economy (Dube, Nhamo and Chikodzi, 2020).
Restaurant operators and organizers of mass events have not had it easy since the
beginning of the pandemic. Governments increasingly restricted their activities and
issued various measures, which meant great losses for these entrepreneurs. In many parts
of the world, for example, there is a ban on retail sales and the sale and provision of
services in establishments, a ban on the public's presence in catering establishments, or a
ban on concerts and other cultural events. However, there are also exceptions
(pharmacies, food sales, fuel sales, etc.), where, for example, it is necessary to observe 2
meter intervals between people or it is mandatory to test employees in some companies.
While some companies have been able to continue to operate and secure, for example, a
delivery system, others have fallen into a liquidation crisis or even ceased to exist.
The aim of this seminar paper is to analyze and describe the economic and existential
impacts of coronavirus caused by government interventions and government regulations
on the services sector worldwide.
In order to meet this goal, two research questions are defined:
• Does the coronavirus pandemic have a negative impact on the whole tertiary
sector, or are there any sectors in this sector that are benefiting from the
pandemic?
• What are the economic and personnel impacts of the pandemic on the tertiary
sector in the Czech Republic and in the world?
29
Literature research
Governments are still coming up with new measures and restrictions on how to stop or at
least alleviate the COVID-19 pandemic. However, these restrictions hurt businesses in the
services sector the most, which are trying to figure out, in times of crisis, how, despite all
these regulations, they can continue to operate without having to lay off employees or
close down. Based on semi-structured interviews with 13 hotel managers in Jakarta,
Bandung and Bali, Japurta and Situmorang (2021) concluded that some of the challenges
posed by COVID-19 could turn into opportunities, and that some of the strategies that
managers pursue could be harmful in the future.
The COVID-19 pandemic has hit the world economy hard, including tourism and
hospitality. The unprecedented nature of COVID-19 has had crippling effects with
numerous restrictions on businesses, resulting in far-reaching effects on hotels,
restaurants, bars and other hospitality businesses, with overall and seemingly
insurmountable challenges for the hospitality industry. The main concerns about the
pandemic essentially take the form of significant financial implications, as well as
worsening uncertainty about the loss of consumers, the unknown duration of the crisis
and the socio-economic impact on employees and livelihoods (Alonso et al., 2020). The
pandemic led to job and income losses, resulting in millions of jobs and billions of dollars
in potential income losses (Dube, Nhamo and Chikodzi, 2020). Jung, Jung and Yoon (2021)
used data from questionnaires distributed to employees for hotels in Seoul and found that
if employees perceive job insecurity, it causes lower work commitment and consequently
a negative state of mind. Koohsari et al. (2021) concluded through an online survey in
Japan that the pandemic has caused significant changes in the work style of workers
around the world, and that the increase in work from home is affecting workers'
sedentary behavior and physical activity.
During the pandemic, organizations engage in many engagement activities, such as online
training, webinars, video conference team meetings, online counseling, etc. In the current
context, the introduction of similar employee engagement measures using technology is
essential for organizational growth (Chanana and Sangeeta, 2020). The use of digital
technologies to perform work from home during a pandemic is rapidly being promoted
as an alternative way to maintain a certain minimum level of service for clients and to stay
in touch with stakeholders. Although the use of technology in general is not a new
phenomenon, its sudden and mandatory nature as a result of COVID-19 has brought new
challenges into the hospitality industry (Chadee et al., 2021).
Wieczorek-Kosmala (2021) says that companies with a higher level of holding financial
reserves are considered to be companies with better risk preparedness. According to
Foroudi et al. (2021), the pandemic affects not only employees of hospitality businesses,
but also the beliefs of customers and their emotions (negative and positive), which could
affect their future desire to visit restaurants, hotels or other hospitality businesses. Im,
Kim, and Choeh (2021) developed two common models and model estimates using the
30
fixed effects method, and found that the number of confirmed cases and COVID-19 reports
affected individuals' social distancing and online search for tourist attraction information.
Robots and artificial intelligence (AI) technologies are increasingly prominent in the
tourism industry. Using 4 experiments in the current pandemic situation, Kim et al.,
(2021) demonstrated a more positive relationship between customers and service robots
providing contactless services, which are beneficial in maintaining social distance and
reducing fears of infection through human interaction. However, after the end of the
pandemic, customer preferences may return to human service instead of robotic service,
because human service includes emotions, guarantees and communicativeness.
Gössling, Scott and Hall (2020) say COVID-19 provides remarkable lessons for the tourism
industry, policy makers and tourism professionals. COVID-19 has significant long-term
and short-term negative effects on the level of employment in the tertiary sector (Khan et
al., 2021). For example, the aviation industry has faced many threats and challenges
throughout history, but none have been as rapid and difficult as those posed by the
proliferation of COVID-19. According to Sobieralski (2020), the employment of major
airlines is the most affected, while low-cost and regional employment is less affected.
Huang et al. (2020) concluded that reopening policies play a statistically significant role
in the slow recovery of the labor market and that the daily increase in new COVID-19 cases
is associated with a continuing deterioration in the labor market.
Methods and Data

The input data will be obtained using online structured questionnaires sent to 60
companies, namely 20 hotels, 20 restaurants and 20 cafes operating in the tertiary sector
in the Czech Republic. The data selection will include data collected from the period from
April 19 to April 25, 2021. The questionnaire will consist of 10 to 15 questions, which will
be closed and open type. The questions in the first part of the questionnaire will be used
to collect demographic data from respondents and their companies. The second part will
focus on identifying the impacts of the COVID-19 pandemic on companies in the tertiary
sector using several open questions. Questionnaires will be sent to companies operating
mainly in the hospitality industry (hotels, cafes, restaurants) via e-mail communication.
E-mail addresses will be used from the created database of companies in MS Excel.
Next comes the analysis of freely available data by Alonso et al. (2020). This article
identifies the impacts of the COVID-19 pandemic on hospitality businesses, adaptive
approaches and adjustments in businesses. Managers and owners of hospitality
businesses in 8 different countries (Argentina, Australia, Bolivia, Greece, Italy, Malaysia,
Spain and the United Kingdom) were contacted via e-mails sent online during April and
May 2020. A total of 96 companies were contacted (12 from each country), of which 45
companies replied. The questionnaires contain data and basic characteristics such as:
country, position of the respondent in the company, gender, type of company, number of
employees, age of the company and 3 open questions.
31
All data will be processed in MS Excel, where the basic statistical characteristics (mean,
variance, median) will be presented and tables and graphs from the obtained data will be
created. The output data should show what are the main concerns of companies in the
tertiary sector associated with the COVID-19 pandemic, how these companies are coping
with this pandemic and what are the changes or adjustments in their daily activities.
Freely available data from the existing questionnaire survey in various countries will be
used to compare the situation in the Czech Republic with the situation in other developed
countries in Europe and in the world.
Results
For the questionnaire survey, 60 companies were contacted, namely 20 hotels, 20
restaurants and 20 cafes from randomly selected regions throughout the Czech Republic.
Only 9 companies responded, which is only a 15% return. Given that the return rate of the
questionnaires in most studies is up to 10%, this fact is essentially positive. Most
responses were obtained from cafes, which accounted for 6 responses, then 2 responses
came from restaurants and one response from a hotel.
The age of the companies that filled in the questionnaire ranges between 2-65 years, i.e.
on average 18.39 years. 66.7% of companies are small enterprises (10-49 employees) and
33.3% are micro-enterprises (1-9 employees). The scope of companies is 88.9% regional
and 11.1% multinational. Three companies out of nine at this time used or still use the
possibility of delivering products or meals. They are mainly cafes and restaurants. Two
companies replied that they used their own distribution and one stated that it used the
distribution in cooperation with another company for 1 month.
The questionnaire further addressed what were or still are the biggest concerns
associated with COVID-19 in relation to the business of the addressed companies, how
these companies cope with this situation and whether, or what opportunities the COVID-
19 pandemic provided them. For the first two questions, respondents had a choice of
several options, where they could tick one or more answers and write their own answer.
The biggest concerns associated with the COVID-19 pandemic are / were addressed by
the contacted companies from the financial impact on their business and from the
uncertainty of what will happen next with their business. Other concerns most frequently
identified by respondents were the uncertain duration of the pandemic and customer fear.
Only one company identified health concerns, see Graph 1.
32
Graph 1: Biggest concerns associated with COVID-19

9
8 8
8
7
6
6
5
4
3
3
2
1
1
0
Financial impact Uncertainty Duration of the Health Customers´ fear
pandemic
Source: Authors.
When asked how companies cope with this situation, the most answers were changes in
activities or tasks and adjustment of working hours. Three companies replied that they
were coping with the current situation by laying off their employees. One answer was
about the possibility of working from home and moving employees to other positions, see
Graph 2. Two companies then added their own answer: the first company stated that 95%
of employees are at home and the second stated that they had to close and wait for what
will happen.
Graph 2: Ways of dealing with the COVID-19 pandemic

6
5 5
5
4
3
3
2
2
1 1
1
0
Changes in Work from Transfering Adjustment of Employee Other
activity home employess to work layoffs
another
position
Source: Authors
To the last question whether or what opportunities the COVID-19 pandemic brought to
companies, 7 companies answered that the pandemic did not bring them any
opportunities. The other two companies replied that the pandemic provided them with
33
new opportunities. For one company it was an opportunity to buy more cheap operations
and for another it was an opportunity to stop, think about the concept, restructure and
set priorities during this pandemic.
Regarding the questionnaires of Alonso et al. (2020) 45 out of 95 respondents answered,
which is 46.9%. The largest number of responses was obtained from hotels (33.3%),
followed by restaurants (24.4%), wine bars (17.8%) and cafes (15.6%). The age of
companies ranges between 1-80 years, with the majority (64.4%) being established for
more than 10 years. According to the respondents, all participating companies belong to
the category of small and medium-sized enterprises, i.e. they have less than 250
employees. The number of employees of the participating companies ranges between 2-
70 employees.
The biggest concerns of companies associated with the COVID-19 pandemic in relation to
their business were from 84.4% concerns about the financial impact, followed by the
uncertainty created by this pandemic. Another significant concern among the participants
was the fear of customers and tourists now or in the future. Respondents' concerns also
included the effects of the pandemic on the future employability of employees and health,
whether it was the health of people in the respondents' households or directly the
employees in the company. Alonso et al. (2020) illustrated these responses in Figure 1.
Figure 1: Concerns associated with the COVID-19 pandemic in relation to business activity
Source: Alonso et al. (2020), processed by authors.
When asked how companies are coping with the COVID-19 pandemic, 34 respondents
found more than one solution. 37.8% of these solutions were focused on generating
alternative revenue streams, for example by including or strengthening the possibility of
delivering and take-out of food or products. Other ways in which participating companies
are dealing with the COVID-19 pandemic are shown in Figure 2. Thanks to innovative and
34
creative approaches, some companies have managed to build a certain resilience and
create new business opportunities. However, the pandemic did not bring any new
opportunities to some companies. This is the case, for example, for those who are located
far from consumers or places of demand or for those who have a different structure and
business circumstances (food only for guests). Respondents had 3 different approaches
to dealing with the COVID-19 pandemic. The first approach is active, which concerns the
improvisation of the range of products and services that the company offers, or the use of
innovative capabilities and the benefits of their location, for example in the city center.
The second approach is inefficient, where companies have chosen to prepare for a post-
pandemic regime. The third approach is inactive, where the only option for companies
was to interrupt operations or set a standby mode, during which companies are waiting
for new protocols allowing them to reopen.
Figure 2: Ways of dealing with the COVID-19 pandemic
When asked whether companies somehow changed or modified their daily activities, 60%
of respondents said yes. The most frequent changes were mainly working from home. In
the case of modifications in companies, emphasis was placed primarily on compliance
with the requirements for the protection of the health and safety of guests and employees.
Some participants also mentioned that they had time to think about new ideas, gather
information and think about the future of their business. In some cases, they have changed
their lifestyle. Changes and modifications of companies are shown in Figure 3.
35
Figure 3: Changes/adjustments in daily activities or tasks
Discussion
The results of the own questionnaire, answered by 9 out of 60 respondents, show that
companies in the tertiary sector had or still have the greatest concerns about the financial
impact on their business, uncertainty about what will happen to their business and the
duration of the pandemic. Respondents also mentioned the fear of customers and tourists
now and in the future. The same results were obtained by Alonso et al. (2020) from their
questionnaires, which were answered by 45 out of 96 respondents. In Alonso et al. (2020)
In addition, respondents raised concerns about the effects of the pandemic on the health
of people in their households or the health of employees in their company.
During the research, 2 research questions were asked.
RQ1: Does the coronavirus pandemic have negative effects on the entire tertiary sector,
or are there any sectors in this sector that are benefiting from the pandemic?
Although the COVID-19 pandemic appears to have harmed tertiary sector companies, it
has provided new opportunities for some companies. In the hospitality industry, these are
mainly delivery services for food and other products, without which restaurants and
other hospitality facilities would not be possible to function at this time. Due to
government regulations, restrictions on the movement of people and the closure of
hospitality establishments, delivery has become the only way to get food or products to
customers. When companies decided to deliver their products, they usually did so with
the help of their own delivery. Some companies also used the services of distribution
companies.
36
RQ2: What are the economic and personnel impacts of the pandemic on the tertiary sector
in the Czech Republic and in the world?
The effects of the COVID-19 pandemic on the tertiary sector in the Czech Republic and in
the world do not differ much. According to the questionnaire regarding the Czech
Republic, the effects of the pandemic on hospitality companies meant mainly the dismissal
or transfer of employees, changes in day-to-day activities and tasks, or even the
termination/interruption of activities. However, this statement is inaccurate, given the
small number of answers obtained.
According to the questionnaire survey by Alonso et al. (2020), the effects of the COVID-19
pandemic on hospitality businesses in other countries were similar. Companies around
the world have also had to lay off their employees, move them to other positions or work
from home, and close or suspend their activities.
Every company, whether in the Czech Republic or in the world, has reacted differently to
the effects of the coronavirus pandemic. While some companies have focused on
generating alternative revenue, building the company's resilience and creating new
business opportunities during the pandemic, some companies have chosen to suspend
their activities and prepare for the post-pandemic regime. Some companies have given up
their fight against the pandemic and decided to end their activities or suspend them and
wait for new government directions.
Conclusion
The aim of the paper was to analyze and describe the economic and existential impacts of
coronavirus caused by government interventions and government regulations on the
tertiary sector worldwide.
The aim of the paper was met. Data from the author's questionnaire survey and from the
questionnaire survey of Alonso et al. (2020) was processed in MS Excel. These sets of data
were then analyzed and presented in graphs and figures in the results chapter. In the
chapter discussing the results, research questions were answered and the results from
Alonso et al. (2020) were compared with author's own results from the questionnaire
survey. Businesses in the tertiary sector are most concerned about the financial impact
on their business and the uncertainty of what the pandemic will bring and how long it will
last. Most often, companies dealt with the pandemic by laying off their employees, moving
to work from home and adjusting their daily activities or tasks. Due to the COVID-19
pandemic, some companies had to close down. However, the results of the author's
questionnaire survey were not very accurate, due to the small number of answers
obtained. Nevertheless, it could be said that the Czech Republic and other countries in the
world are dealing with the COVID-19 pandemic and its effects in a similar way.
37
In the future, it would be interesting to find out whether companies that have ceased their
activities as a result of the COVID-19 pandemic have decided to resume their business in
this sector or have decided to completely change their business plan.
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Ing. Jakub Horák, MBA, School of Valuation and Expertness, Institute of Technology and
Business in České Budějovice, Okružní 517/10, České Budějovice 370 01, Czech Republic,
Kateřina Mlsová, bachelor student, School of Valuation and Expertness, Institute of
Technology and Business in České Budějovice, Okružní 517/10, České Budějovice 370 01,
Czech Republic, e-mail: [email protected]
Ing. Veronika Machová, MBA, School of Valuation and Expertness, Institute of Technology
and Business in České Budějovice, Okružní 517/10, České Budějovice 370 01, Czech
39
Customer manipulation during grocery shopping
Eva Kalinová1, Adéla Vilímková 2
1University of Žilina, Faculty of Operation and Economics of Transport and

Communications, Department of Economics
Valuation
Abstract
Psychological influencing is a common practice in commerce, so it is not surprising

that it also happens during grocery shopping. It is important for everyone to realize
whether they are shopping correctly during their daily grocery store trip. Using data
on general information about the individual, household standard of living, common
items when shopping and comparing selected supermarket chains, collected by CAWI
(Computer Assisted Web Interviewing), we were able to penetrate the ideas of
everyday customers and analyze the data mainly by induction. However, the CAWI
method does not prove to be the most suitable. The results show that only some
demographic factors influence the view of the price level and that despite the fact that
customers are aware of most of the influencing factors, they let themselves be
manipulated by them anyway. These results will serve for a greater overview of the
general population regarding the psychology of purchasing, managers of individual
stores and chains, as well as professionals dealing with similar issues.
Keywords: left-digit effect, prices ending in nine, food chain, trademarks, produce
country of origin, psychological influence
Introduction
Price is greatly influenced by the human view of the quality of the product, which plays a
big role in deciding whether customers get a product of sufficient quality in exchange for
their money. This idea is confirmed by Shiv, Carmon and Ariely (2005), who argue in their
work that prices exert conscious influences on product quality expectations and product
performance. Which logically implies that sellers use this abundantly to their advantage,
40
so we can notice prices that often end in the number nine (Tripathi and Pandey, 2018).
Choi et al. (2014) argue that buying a certain product is often accompanied by a sense of
guilt, which can be exacerbated if it is not a necessary thing for everyday life, but a thing
to satisfy one's own desire or enjoyment. This guilt is, however, often alleviated by a sense
of effort to obtain the desired product or a sense of selfless behavior (Choi et al., 2014). In
addition, Lee-Wingate and Corfman (2010) found that guilt is even lower when a purchase
includes a promotional item in the form of a gift that the customer can give to a loved one.
At this time, this issue, influenced by the spread of Covid-19, is very relevant for both
consumers and directors and managers of individual stores, as customers have the
opportunity to reveal when visual influencing of themselves occurs and managers and
company presidents to find out how to increase sales with minimal price adjustment.
The aim is also to determine the psychological effect of price on the customer and the
practices of selected chains used to get the customer to buy the product with a focus on
price. Specifically, these are the three largest competitive retail chains in the Czech
Republic, which according to the Chamber of Retail Chains SOCR ČR (2020) are those
chains that achieve the highest annual sales in the Czech Republic; namely Kaufland, Tesco
and Lidl. To meet the aim of the paper, it is important to answer the following questions:
V1: To what extent do demographic factors affect price perception?
V2: What feelings do prices visually evoke in customers?
V3: What factors influence customers to make a purchase that customers are most aware of?
V4: Do customers prefer products with a strong designation of origin more?
V5: To what extent are customers influenced by trademarks?
Literature research
The degree of influence on customers regarding how to pay the required price is a very
broad topic, which can be considered from various angles. Tripathi and Pandey (2018),
who deals with the issue of nine-ending prices for green and non-green products, says
that, in customers, a round price evokes a feeling of quality and the purchase of something
truly exceptional, while a product with prices ending with nine feels common to cheap.
This is supported, for example, by Montero-Vincente et al. (2019), who state that the
segment of people who prefer quality food decide on the basis of product quality rather
than price attractiveness. Lin and Wang (2017) further develop this idea by the theory of
the left-digit effect, which states that the price is more favorable for customers, the lower
the left digit of the price at the expense of a price ending in nine. This effect is exacerbated
when it comes to a discount; the original price is shown on the price tag and a significant
difference between the left digit of the original price and the left digit of the new price is
visible at first glance. Hrubá and Sadílek (2021) offer us another direction of focus on how
to influence the customer, stating that music, which influences our feelings, plays an
important role in purchasing decisions. It is music that often causes inattention when
41
choosing food for a large part of the population, the other part is already so accustomed
to music in their surroundings that it takes it only as a backdrop (Hrubá and Sadílek
2021). A significant element in the increase in sales is the customers' popularity of
innovation and trends; all new products or limited editions according to Nazzaro et al.
(2019) show a high increase in sales.
Cole et al. (2008) brought about knowledge of brand loyalty and stereotypes, the main
idea is that the younger generation is influenced by the older generation, whose decisions
are related to age and experience, but despite these facts, the younger generation likes
different sorts of products. Brand loyalty is mainly influenced by the factor of what sort of
product it is. Kos Skubic, Erjavec and Klopčič (2018) state that people prefer country of
origin and brand for meat products, while for dairy products they look mainly at prices.
However, Balogh et al. (2016) claim that the designation of quality and origin plays an
important role in all foods but depends on the attractiveness of the quality certificate and
the authentic ingredients.
The attention of customers and their awareness is proportionally dependent on several
variables. People who devote themselves to healthy nutrition and healthy lifestyles show
a better orientation in the quality of products, which is supported by reading labels (Saba
et al., 2019). Anić, Rajh and Rajh (2014), however, claim that it is also to some extent
influenced by demographic variables, as confirmed by Sadílek (2019), who divided
customers into three groups, unconscious customers who number half of the subjects,
customers searching for quality products, who make up 24% and ultimately customers
impulsive, based on their shopping behavior, which is based on the level of education,
gender, income and the size and integrity of their family. We will use a questionnaire
survey to collect information, as this style of information collection is considered to be the
most ideal way to collect large amounts of information (Saunders, Lewis and Thornhill,
2019).
Methods and Data

To answer question V1, it will be necessary to obtain as much demographic information
about the respondents as possible. Specifically, it will be necessary to know the age,
gender, marital status, number of children in the household and whether they consider
prices to be reasonable and affordable, too high or too low. When asking V2, it will be
important to find out if they prefer round prices, prices ending in nine, and their
perception about the left digit. In the case of V3, it will be necessary to find out which
influencing factors the respondents notice when shopping. Among the factors interviewed
will be the appearance of the price tags, namely their color, size, location in relation to the
goods and the layout and size of the price tag text. Another factor is radio, both targeted
music, which is supposed to put customers in a pleasant mood, and the ever-returning
discounts and promotions, which are often part of the television advertising block and in
advertisements placed on websites, and are also all written in a leaflet, which the vast
majority of people receive in their mailbox and is also available in the store itself and
42
online. The distribution of goods is closely related to the stock of goods, because usually
cost-effective goods are placed in prominent places, but we can see that the most
expensive goods are at eye level and the cheapest goods are located at the bottom of the
shelves. The last examined factor will be at first glance random texts around the store
such as: bargain offer, price bomb,… which are of course purposefully placed. In the V4
question, it will be crucial to find out whether customers automatically choose goods that
have a prominently stated designation of origin or whether they look past the first visual
impression and look more specifically at all products and their origin, despite the fact that
it will keep them in the store longer and if the country of origin is important to them. The
last question, V5, focuses on whether customers also make decisions based on
trademarks. It will therefore be important to find out whether customers prefer
trademarks that guarantee them quality and whether they are willing to pay extra for such
products. Therefore, whether they prefer quality over price or vice versa. As part of the
summary of questions, it will be necessary to find out in which of the chains mentioned in
the introduction it is most pleasant for customers to shop.
We will obtain all the necessary information by means of a questionnaire survey, which
will be carried out using the CAWI method, the tool of which is a web questionnaire.
Nazzaro et al. (2019) and Baregheh et al. (2012). The aim of the questionnaire survey will
be to obtain all the information to answer the questions from the introduction. The filling
out of the structured questionnaire will take place anonymously and online.
Due to the qualitative nature of the data, the main method for data evaluation will be the
induction method, which will be used in all answers to research questions and will be
supplemented by synthesis, comparative and relational methods.
Results
The questionnaire survey was filled out by 155 respondents, of which 116 were women,
38 were men and one respondent who chose to include themselves into the group "other".
Graph 1 showing the age composition of the interviewed group. It is clear from this graph
that the most numerous age group were respondents aged 18-25, namely 124
respondents, 6 respondents were from the groups <18 years old, 26-35 years and 36-45
years, 10 respondents were from the age group 46-55 and the least numerous group, 3
persons, were respondents >55 years of age. Of the total number of respondents, 81 are
single, 54 in a relationship, 15 married and 5 divorced. 50 respondents live in one
household with children, of which 32 with only one child, 15 with two children, 1 with
three children and 2 with four or more children and 105 respondents live in one
household without children. Regarding the level of food prices, 83 respondents responded
that they were too high and 72 respondents that they were reasonable and none of the
respondents thought that prices were too low.
43
Graph 4: Age of respondents

140
120
100
80
60
40
20
0
<18 years 18-25 years 26-35 years 36-45 years 46-55 years >55 years
Source: Authors.
In the visual evaluation of prices 89 respondents chose the option 149.90 and 66
respondents chose the option 150. In the second visual evaluation of prices 94
respondents chose option 198 and 61 respondents chose option 200. When deciding on
the placement of price tags on goods, 103 respondents preferred price tags under goods,
10 respondents above goods and 42 respondents do not care about the placement of price
tags.
Graph 2 shows a graph of respondents' relationship to music in the store, where we see
that 70 do not perceive music at all, 43 do not mind, 26 like it, 9 do not like it and 7 cannot
stand it. Another element examined was an announcement about discounted goods on the
store radio when shopping, with 61 respondents regarding it as annoying, 28 respondents
not bothered, 46 respondents do not perceive it, 17 respondents sometimes find it
beneficial and 3 respondents regularly shop according to it. The questionnaire also shows
that 39 respondents do not look for advertising for promotional items, 77 respondents
use classic promotional leaflets in paper form, 72 respondents prefer discount leaflets in
electronic form, 39 respondents have confidence in television advertising and follow it, 5
respondents follow advertising on the radio, 36 respondents follow advertising on the
Internet, 8 respondents follow advertising on billboards, 4 respondents search for
advertising on the store radio, 2 respondents search for advertising on public transport
and the daily press. Due to the fact that the question on the sources of promotional goods
was semi-structured, respondents could use the option of their own answer, this option
was used by 3 respondents, one of these three answers was that the respondent follows
the current price tags in the store exclusively, the second answer was only the internet in
general and the last respondent answered that they look at what is discounted, but not
really; it is only artificially increased in price before the discount, so the final price is
standard. The survey also shows that 113 of the respondents leave shopping with goods
they did not plan to buy, 20 respondents always leave only with what they had on the list
44
and 22 respondents do not prepare a purchase list in advance. 55 respondents will add to
their purchase the first thing they can get their hands on and 111 respondents will choose
advantageous prices for products of the same category. Announcement signs such as price
bomb, bargain offer, etc. attract 127 respondents, of which 33 respondents will
automatically add goods to their purchase if it is a common item that they buy and 94
respondents will first consider whether it really is a bargain price. 28 respondents do not
pay attention to these signs. For 94 respondents, the country of origin does not play a role
on choosing the food product, rather their experience with individual products and their
price, 44 respondents cannot be influenced at first glance for products with a clearly
visible country of origin, they give other products a chance and inspect them first, and 17
respondents automatically reach for the product depicting the country of origin of their
preference, as it is faster and they know where the goods come from.
Graph 5: Music on the store radio

80
70
60
50
40
30
20
10
0
do not pay do not mind it like it dislike it cannot stand it
attention to it
Source: Authors.
Graph 3 shows a graphical representation of respondents' decision-making factors when

shopping; 67 respondents make decisions based solely on the price of food, 47
respondents make decisions based on the quality of product ingredients, 36 respondents
prefer food with trademarks and 5 respondents buy only products with trademarks. In
the visual choice between a product with a marked origin from the Czech Republic on the
front and a product that did not have a marked country of origin on the front of the
product, 106 respondents chose a product with a strongly visible country of origin and 49
respondents would choose a product without it. In the case of choosing between a
traditional brand product without trademarks and a product of a lesser-known and less
widespread brand, boasting several trademarks, 134 respondents chose a traditional
brand product and 21 respondents chose a trademarked product.
45
Graph 6: Decision-making factors when shopping for food

80
70
60
50
40
30
20
10
0
price ingredient trademark trademarks
preference exclusively
Source: Authors.
Respondents purchasing products were asked about their willingness to pay extra for
trademarked products, see Graph 4. Thirty respondents do not hesitate to pay extra for
trademarked products, 60 respondents are willing to pay extra, but at the same time try
to look for promotions and discounts and 42 respondents buy trademarked products only
if they are comparable in price to others.
Graph 7: Willingness to pay extra for trademarks

70
60
50
40
30
20
10
0
willing to pay extra willing to pay extra, but try not willing to pay extra
to find deals
Source: Authors.
Graph 5 shows respondents' satisfaction with individual segments in selected food chains.
The first listed here are the advantageous prices, with 63 respondents satisfied with them
in Kaufland stores, 19 respondents in Tesco stores and 73 respondents in Lidl stores.
Regarding logical placement of goods within the sales area, 42 respondents show
46
satisfaction with the Kaufland chain, 42 respondents with the Tesco chain and 71
respondents with the Lidl chain. As for loyalty programs, 39 respondents expressed
satisfaction with the Kaufland chain, 57 respondents with the Tesco chain and 59 with the
Lidl chain. As for the diversity of payment options, 33 respondents opted for the Kaufland
chain, 73 respondents for the Tesco chain and 49 respondents for the Lidl chain. The
highest density of assistance staff in the sales area was recorded by 42 respondents at
Kaufland stores, 51 respondents selected Tesco stores and 62 respondents chose Lidl
stores. The diversity and availability of goods is best met by the Kaufland chain for 60
respondents, by Tesco for 54 respondents and by Lidl for 41 respondents. Regarding the
most ideal size and clarity of the payment area, Kaufland was chosen by 41 respondents,
66 respondents selected the Tesco chain and 48 respondents selected the Lidl chain.
Graph 8: Customer satisfaction in monitored chains

80
70
60
50
40
30
20
10
0
favorable logical loyalty diversity of density of diversity size and
prices placement program payment staff and clarity of
of goods options availability payment
of products area
Kaufland Tesco Lidl
Source: Authors.
Discussion
We will use the information obtained by the questionnaire survey to answer the research
questions that were created in the introduction:
To what extent do demographic factors affect price perception? The price is too high for
a large number of customers. Its perception, in terms of demographic phenomena, is not
affected by gender, but prices are too high for married customers, as well as for customers
living with one or more children in the same household and those in the age group 36 and
older.
What feelings do prices visually evoke in customers? For customers of food retail chains,
the most positive feelings are evoked by prices that are visually much lower than their
actual level. This is the effect of the left digit and the nine-ending price; regarding both
crowns (CZK) and pennies. The research done Lin and Wang (2017), Patalano et al. (2021)
47
and Tripathi and Pandey (2018) is in line these findings. When placing price tags on
shelves, they prefer them to be placed under the product.
What factors influence customers to make a purchase, that customers are most aware of?
A significant element is radio in the store, the music of which respondents feel neutral to
negative towards, which is closely related to the announcement of promotional items on
the radio, which receives a similarly negative sentiment among customers. Customers
search for discounted goods in classic paper leaflets, but also in their electronic form, and
notice advertisements for promotional products on television and on the Internet. A
significant and successful factor are the announcement texts and signs in stores for
bargain purchases, which have a minimal negative response and a very positive effect
supporting the purchase of products, customers are aware of their influence, but still buy
products recklessly, which is why customers leave the store with products that they were
not planning to purchase.
Do customers prefer products with a strong designation of origin? The decisive factor for
most customers is the price and experience with a certain product of the given category,
more than a strong designation of origin, they prefer traditional brands.
To what extent are customers influenced by trademarks? Tradition and price also prevail
in the question of trademarks. But customers who prefer or search for trademarks have
no problem paying extra for these products, with half of those looking for discounts and
promotions.
When comparing the selection of retail supermarket chains with food products, it is best
to shop at, according to customers, the Lidl chain with the highest frequency of votes
across all rating points.
Conclusion
The aim of the article was to find out the opinion of customers on retail food chains in
relation to prices and surrounding shopping phenomena. The goal was met and all
answers to the questions were found. Nevertheless, it would be better to choose a
different method of data collection than a questionnaire for the next similar research, so
that psychological connections, from conducting for example a personal interview, could
be evaluated more accurately.
The majority opinions regarding food prices depending on demographic factors,
significant factors influencing customers when shopping, the relationship of Czech
customers to trademarks and country of origin designations, which prices are more
visually enticing and which chain is the best for shopping were found. This information
can be used both by customers themselves to become aware of the entire shopping
system, and by companies that want to target their development in the right direction.
48
References
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156.

Ing. Eva Kalinová, University of Žilina, Faculty of Operation and Economics of Transport
and Communications, Department of Economics, Univerzitná 8215/1, 01026 Žilina,
Slovakia, e-mail: [email protected]
Adéla Vilímková, bachelor student, Institute of Technology and Business in České
Budějovice, School of Expertness and Valuation, Okružní 517/10, 370 01 České
Budějovice, Czech Republic, e-mail: [email protected]
50
Comparison of Funding Corporate Education in the Czech

Republic in 2016 and in 2021 during the Covid-19 Pandemic
Iva Klementová1, Michaela Procházková1
1Institute of Technology and Business in České Budějovice, Faculty of Corporate Strategy
Abstract
The paper deals with an analysis of sources of finance for corporate education in the
Czech Republic during the covid-19 pandemic in 2021, and compares such concept
with conditions in 2016. The research is based on results of two questionnaire
surveys. The first survey, where 607 companies were involved, took place in 2016,
whilst the second one (with 506 companies participating) in the first half of 2021.
Both surveys examined whether different types of funding employee education
depend on company size, with two hypotheses being established. The first hypothesis
(i.e. Using external sources of finance for employee education depends on company
size) was confirmed, as large companies use more external sources than smaller
companies. However, the second hypothesis, which was to prove a claim that the
share of funding employee education solely from funds, projects, grants and subsidies
will have an increasing tendency (when comparing the first and the second period
under review), was not confirmed.
Keywords: corporate education, funding sources, human resources, covid-19
Introduction
Growing technical demands of production, opening of new markets as well as competition
growth place high demands on companies. Human resources are currently one of the most
important factors in competition. "If an organization is to develop in today's highly
competitive environment, it cannot do so without ongoing training and development of
its employees" (Urbancova et al., 2021).
According to Armstrong (2014), education and development are defined as a process
ensuring that an organization has educated, qualified and committed people. It is
51
desirable that employee education should be seen as an investment that returns to the
organization in the form of educated and capable employees. Given the fact that human
resources have become the biggest competitive advantage of organizations, Czech
organizations strive to create and continuously provide a variety of talent programs to
their employees (Vnoučková, Urbancová, Smolová, 2018).
At present, the labour market is going through great development not only with regard to
introducing digitization and other trends in Industry 4.0, but also in connection with the
situation surrounding the global covid-19 pandemic. According to Beneš (2021), more
than half of industrial companies in the Czech Republic are currently facing a shortage of
skilled labour, as based on to the latest statistics. It may be assumed that the covid-19
pandemic will further exacerbate this problem. On the other hand, it should be noted that
even in the pre-pandemic period, initial employee education did not provide the
knowledge and skills expected by employers, and companies could not do without their
employees´ further education and competence development.
Another reason for educating employees is that their initial education is no longer able to
provide grounding for the entire period of their professional career. Denkowska, Fijorek,
Wegrzyn (2020) followed the research of Earle (2010) who had shown that innovations
are reflected in the knowledge and skills of employees with tertiary education.
Denkowska et al. (2020) then proved that innovations and competitiveness depend on
the will and skills of workforce to maintain habits of self-studying. The knowledge
acquired as a result of formal education has a weaker, although still significant, impact on
the level of innovations in EU countries.
"From the viewpoint of organizations, knowledge is the most important intangible
resource that can be found in human beings. In line with rapidly changing trends, it is
necessary for organizations to focus on implementing an innovative education system and
be able to work in accordance with sector expectations leading to knowledge promotion.”
(Vnoučková, 2017). Also, Fajčíková, Urbancová (2017) looked into evaluating tools for
education and development of human resources used in organizations operating in the
Czech Republic.
In addition, employee education is also supported within the EU, and a number of tools
have been developed to support lifelong learning. The Strategic Framework for European
Cooperation in Education, adopted in May 2009, defined values for participating in
education to be achieved in 2020. A corresponding proportion rate of adults aged 25-64
to participate in long-term education was set at the minimum of 15%. According to
Eurostat, the rate was reported to be at 10.8% in 2019, which was 0.7% higher than in
2014. The best performers were Denmark, Finland and Sweden, where the figure ranged
between 25.3% and 34.3%, whereas the worst countries in that respect included
Romania, Bulgaria, Greece and Croatia (less than 4%). The Czech Republic recorded
11.1% of people in the above age group engaged in lifelong learning (Eurostat, 2020).
Considering an approach to employee education, it differs not only between individual
states, but also between their individual regions. Filippetti, Iammarino, Guy (2017)
52
discussed regional differences related to the impact of employee education on

employment. They focused on the effectiveness of educating and its impact on
employment within the northern and the southern regions of Italy. They also addressed
differences in the private sector and the public sector and described funding sources.
European Union funds are the main instrument for implementing the European cohesion
policy. Interested parties have an opportunity to draw down the funds through individual
operational programs. The European Social Fund (ESF) has been supporting employment
and human resources development activities since 1957 with the focus on non-
investment projects. In the Czech Republic, the funds are drawn through the Employment
Operational Program. Its aim is to improve the population´s human capital and public
administration in the country, also involving the area of further education. In the course
of the 2014-2020 programming period, a number of calls directed at employee education
were implemented through the program: Development of further vocational education
(020), Corporate employee education (043), Education – a common path
to development! (060), Corporate employee education II (097), Education – a common
path to development II! (110), Age management – a smart change in management, an
opportunity for growth (079). (Ministerstvo práce a sociálních věcí, 2020) Another
opportunity for drawing down the funds involved POVEZ and POVEZ II programs.
Education and development of competencies are also supported in other operational
programs implemented in the Czech Republic, e.g. The Rural Development Program, The
Fisheries Operational Program and others. A number of funds supporting education in the
above programming period were also drawn through Local Action Groups under the
LEADER program. Líšková, Klufová, Rost (2019) assessed the LEADER program in
relation to the Visegrad Group (V4).
Tomé and Tracz-Krupa (2019) examined experience with drawing down funds from the
ESF within the V4 in the 2007-2013 programming period. They state that the ESF is a form
of public investment in human resources development using EU funds, and it is also a tool
to help the V4 countries and their labour markets develop and lead them to increasing
levels of skills. At the beginning of the period, the V4 countries had a good educational
base comparable to the EU average. However, vocational training and further education
are the areas where large deficiencies were found. Despite some quality problems, Tomé
and Tracz-Krupa (2019) view the experience with drawing down the funds as very
positive, with greater development and increased skill levels occurring in terms of human
resources development.
A large number of companies in the Czech Republic are aware of the importance and need
for educating of their employees. However, they do not always have enough of their own
financing sources, and it is the drawing down from the EU structural funds (through
various operational programs) that can provide them with sources to support educating.
Dubel and Pawłowska (2020) deal with the issue of using ESF sources for education.
According to Morley et al. (2016), the amount that Central and Eastern European
companies spend on educating of their employees is approximately 4% of the total annual
53
wage costs. They also remark that while assessing the effectiveness of individual training
programs, feedback from line managers is most applied, which is followed by feedback
from employees, fulfilment of goals and immediate response to trainings from their
participants. The cost-effectiveness of skills development was addressed by Bhattacharya,
Gibson, Doty (2005), who found that flexibility of abilities and skills contributes to cost-
effectiveness. The findings suggest that investing in flexible skills and employee behaviour
will positively affect financial performance of companies.
Urbancová et al. (2021) observed changes that occurred as a result of the covid-19
pandemic. They state that current trends and priorities of human resources for 2021,
including an approach to funding, have changed significantly.
Methods and Data

The main objective is to determine whether and to what extent sources of funding related
to corporate education differ depending on company size. Thus, the following hypothesis
(Hypothesis I) was formed: Using external sources of finance for employee education
depends on company size, large companies use more external sources to fund employee
education than smaller companies. Furthermore, the research presented here followed
results of the research conducted in the second half of 2016, as based on Caha (2017).
The other objective is to compare results of two questionnaire surveys from 2016 and
2021 respectively. The following hypothesis (Hypothesis II) was therefore formed: When
comparing the first period (2016) and the second period (2021) under review, the share
of financing employee education solely from funds, projects, grants and subsidies will
have an increasing tendency. The second hypothesis is based on an assumption that the
year 2021 is the end of the 2014-2020 programming period and individual companies
had already had enough opportunities to gain experience in drawing down funds
particularly from the EU structural funds.
A related research sample encompassed companies of diverse types and eventually
amounted to a total of 506. Questionnaire survey results were processed by basic
mathematical and statistical methods. To verify dependence of individual factors,
calculations in the SPSS program were performed and a chi-square test as well as a sign
test were applied. The companies were divided into four groups (categories) according to
size, as indicated in Table 1.
Tab. 1: The structure of the research sample

Company Categories Number of Companies
Micro-enterprises (1-9 employees) 130
Small enterprises (10 – 49 employees) 139
Medium-Sized enterprises (50-249 employees) 108
Large enterprises (250+ employees) 129
Total 506
Source: Authors.
54
Results
Regarding the individual groups, it was then examined how companies fund educating of
their employees, which may be seen in Table 2:
Tab. 2: Structure of financial resources according to company size
Micro- Small Medium Large
Enterprises Enterprises Enterprises Enterprises
Number % Number % Number % Number %
solely from own funds 118 90,8 115 82,7 80 74,1 61 47,3
solely funds from projects.

grants and subsidies 1 0,8 6 4,3 5 4,6 10 7,7
mainly from own funds, partly

from projects, grants and 8 6,2 13 9,4 18 16,7 48 37,2
subsidies
mainly funds from projects,
grants and subsidies, partly 3 2,3 5 3,6 5 4,6 10 7,8
from own funds)
Source: Authors.
The chi-square test confirmed significant dependence between company size and types of
funding employee education (see Table 3). Therefore, Hypothesis I was confirmed.
Tab. 3: Chi-Square tests

Chi-Square Tests
Value df Asymptotic Significance (2-sided)
Pearson Chi-Square 75.009a 9 .000
Likelihood Ratio 74.085 9 .000
Linear-by-Linear Association 43.812 1 .000
N of Valid Cases 506
a. 2 cells (12.5%) have expected count less than 5. The minimum expected count is 4.70.
Source: Authors in the SPSS system
Moreover, Hypothesis I could also be verified using a sign test (see Table 4). Statistically,
large enterprises significantly more often declare that they mainly use own funds, partly
grants, etc. – with 99.9% reliability (+++), but also significantly more often use solely
projects and grants and mostly projects and grants – with 95% reliability (+).
Tab. 4: A sign test
sources * size Crosstabulation
Adjusted Residual
Size
Medium-
Micro- Small Sized Large
solely funds from projects,
- o o +
grants and subsidies
Sources
mainly funds from projects, grants

and subsidies, partly from own o o o +
funds
55
mainly from own funds, partly

from projects, grants and --- -- o +++
subsidies
solely from own funds +++ ++ o ---
Source: Authors in the SPSS system
Graph 1 shows the structure of resources for funding corporate education in 2021.
Graph 1: Types of funding corporate education
Source: Authors.
Table 5 shows a comparison of shares of individual funding types in 2016 and 2021. In
2021, large companies decreased the share of financing solely from own funds and mainly
from own funds. On the other hand, there was an increase in the share of funding through
projects, grants and subsidies.
Tab. 5: Sources of funding employee education based on company size - years 2016 and 2021
Micro- Small Medium Large
2016 2021 2016 2021 2016 2021 2016 2021
solely from own funds 85,5 % 90,8 % 76,1 % 82,7 % 60,1 % 74,1 % 53,7 % 47,3 %
solely funds from
projects, grants and 4,6 % 0,8 % 3,4 % 4,3 % 3,7 % 4,6 % 2,4 % 7,8 %
subsidies
mainly from own funds,
partly from projects, 7,6 % 6,2 % 13,6 % 9,4 % 29,4 % 16,7 % 41,5 % 37,2 %
grants and subsidies
56
mainly funds from

projects, grants and
subsidies, partly from 2,3 % 2,3 % 6,8 % 3,6 % 6,7 % 4,6 % 2,4 % 7,8 %
own funds)
Source: Author.
As for micro-enterprises, small enterprises and medium-sized enterprises, the share of

financing solely from own funds increased in 2021 (when compared to 2016), and yet the
share mainly from own funds decreased (even by more than 12% in the case of medium-sized
enterprises). Regarding funding mainly from projects, grants and subsidies, the share
stagnated (micro-enterprises) and slightly decreased (small and medium-sized enterprises).
Graph 2: Sources of funding employee education based on company size - years 2016 and 2021
Source: Author.
Following from the results illustrated in Table 5 and Graph 2, it can be stated that
Hypothesis II was not confirmed. The increase in the share of funds from projects, grants
and subsidies occurred only in large companies, whilst the share stagnated or even
decreased in other companies.
Discussion and Conclusion

Statistical methods proved that using external sources of finance for employee education
depends on company size, where large companies use more of such sources than smaller
companies and are able to better cope with the administrative complexity of drawing
down individual subsidy titles. There can be several reasons for that. In general, it may be
assumed that large companies have better conditions for managing the administrative
process associated with drawing down subsidies, both in the form of sufficient personnel
and financial coverage. There are companies able to manage the entire course of
57
administration and actual implementation from their own funds, whereas other
companies are forced to use external services. In most cases, when drawing down
subsidies, eligible expenses are reimbursed only after the project´s implementation and
completion. Thus, applicants are often concerned that if they make a mistake, the project
will not be reimbursed and they will have to bear the costs from their own funds. Also, the
situation is certainly complicated by the fact that for most projects, education suppliers
must be selected in accordance with the Public Procurement Act. The Czech Chamber of
Commerce (CCC), for instance, is aware of that and organizes courses for its members. The
CCC therefore enters the role of an applicant and handles the administrative burden,
organizing and responsibility for drawing down on behalf of its members.
The objective was also to confirm Hypothesis II: The share of funding employee education
solely from funds, projects, grants and subsidies will have an increasing character in view
of comparing the first and the second period under review. However, the hypothesis was
not confirmed. There are several reasons why the share stagnated or even decreased, with
the covid-19 pandemic being one of them. Several forms of aid, e.g. Antivirus A, were
drawn down from the ESF, and a combination of the ESF education aid and the Antivirus
A aid would mean double funding, which is inadmissible under the Structural Funds
programs. This generated a situation where companies had time for educating their
employees, but had to carefully consider funds they would use. Another problem related
to the pandemic was the inability to organize full-time education. Considering the fact that
the Czech Employment Operational Program (EOP) was originally aimed only at full-time
education, the official notification of programs where the form was changed to online
education had to be made again. Additionally, it even occurred that educating through the
EOP could not be implemented at all for a certain period of time. As a result, if companies
wanted to educate their employees during that period, they could only use their own
funds. Another obstacle to drawing down was de minimis aid indicating that a given entity
must not exceed the sum of EUR 200 000 in any three-year period. Apart from educating,
the sum (limit) also included aids for job retention, which could potentially lead to
meeting the limit. However, that would be assumed particularly for large and medium-
sized enterprises.
In conclusion, it can be stated that companies rely mainly on their own sources of finance
when funding education of their employees, and there are still large reserves in using
funds from programs, grants and subsidies.
This paper was supported by the project Specific university research - No. SVV202102
“Analysis of Corporate Education on selected sample of various size categories in the
Czech Republic.”
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Ing. Iva Klementová, Ph.D., Institute of Technology and Business in České Budějovice,
Faculty of Corporate Strategy, Okružní 10, 370 01 České Budějovice, Czech Republic,
Ing. Michaela Procházková, Institute of Technology and Business in České Budějovice,
60
Motivated employees as key to success of any organization
Viktorie Kováříková1, Miluše Balková1, Iva Klementová1
Abstract
Employee motivation is currently the main key to the success of the entire
organization. A purpose of a questionnaire survey implemented in a selected
organization was to find out whether its employees are properly motivated and to
find out which motivating factors are the most effective ones in relation to their
performance. The results have shown that it is necessary to implement some changes;
for this reason, several recommendations have been made in order to achieve
improvement. The benefit of this work for the organization is the detailed overview
of the actual situation in terms of the incentive system and the recommendations
based on the employee preferences and current trends. The organization will also
obtain new impulses that may lead to better employee motivation and thus improve
the performance of the relevant organization.
Keywords: motivation, employees, organization, human resources management
Introduction
Motivation is currently a very topical issue, and one of the most important elements in the
area of human resources management. Motivation is basically a process of inspiring
people to achieve their goals (Chaudhary and Sharma, 2012). Employee motivation is a
minor but important part of successful personnel management. Managers must be able to
identify employee goals and lead employees so that they are able to achieve those
objectives. Recognition and feedback are considered the primary motivators; more
money does not necessarily mean better motivation and productivity (Fuhrmann, 2006).
All employees have their specific objectives and a clear picture of what they want to achieve
at work in order to be satisfied. To achieve these objectives, employees are willing to work
well and reliably (Stýblo, 1992). Work motivation represents a complex approach of an
61
employee to work in general, to specific circumstances and conditions of his or her

engagement and employability, and specific assigned tasks (Provazník, Komárková, 1996).
Are all employees fully engaged in their work? A recent study has shown that it is not true.
Actually, it is less than 1/3 of them (Markos, Sridevi, 2010). The question is whether
employees feel well after whole-day work and if they feel satisfaction from the work done,
whether they feel that they have achieved something, helped somebody, learned
something, and contributed to something. Increasingly more often, employees ask what
is the purpose of their work. The response should be that it is more than just money. Of
course, they need money for satisfying their basic needs; however, motivation and
engagement are not something money can buy (Guinn, 2013).
The main objective of this study is to assess the system of employee motivation in the
company Hauser s. r. o. and subsequent evaluation of whether the employees of this
company are properly motivated, or to find out which motivation tools are the most
effective in relation to improving their performance.
Literary research
Theory of motivation has been addressed in professional literature in the sense that
managers use motivational factors to successfully tackle/handle their assigned tasks. The
question is whether managers in the Czech Republic are able and willing to use the
individual motivational factors for their managerial work. Another question is which
motivational factors can be used to motivate employees to the best performance possible.
Appropriate motivation is of great importance for better performance, productivity,
efficiency, and profitability. This idea is presented by Hospodářová (2008), who claims
that the basic objective of motivation is to find and retain a qualified employee with high
productivity and efficiency of performance.
Employee motivation is one of the tasks of a manager. In this context, the most frequently
cited authors are Mintzberg (2006) and Šuleř (2008); however, each of them has a
different approach. Mintzberg (2006) defines the role of a manager on the basis of
manager activities, while the definition by Šuleř (2008) is based on their functions.
According to La Bross, culture in the workplace is supported by managers who use all
opportunities to encourage and motivate their subordinates. Authors, such as Daigeler
(2008), Niermeyer and Seyffert (2007) state that the motivation of subordinates is one of
the most important managerial tasks. Crainer and Des (2004) believe the more
subordinates lose their motivation and their performance decreases, the more physical
problems arise.
Making people work their best is one of the biggest challenges for managers. Employee
satisfaction and motivation are becoming increasingly more important in companies.
According to Nohria, Groysberg and Lee (2008), factors that enhance motivation include
establishing bonds with the employees, understanding, and comprehension.
62
Salanova and Kirmanen (2010) explain that the process of motivation starts with the
recognition of unsatisfied needs. Next, it is necessary to set the objective that would satisfy
the need. For better achievement of the given objective, rewards for employees can be
help set. Motivation is also influenced by social context, which comprises organizational
and cultural values, as well as leading and management, influence of a group or a team.
According to the study by Oldham and Hackman (2010), which focuses on employees in
education, institutions, and scientists, specifies six main factors: remuneration and
benefits, career growth and development, meaningful work, leadership style, workplace
relationships, and job security.
Norberg (2017) examined motivational factors and effectiveness of motivational factors
related to work motivation. First, the author focused on various motivation theories and
categories of incentives. The results of the study showed that incentives have very strong
motivational potential and are able to make employees work more. The three most
effective motivational factors appreciated by employees include human relationships,
working environment, and interesting work. Other effective long-term factors motivating
to work include meaningful work, flexible working hours, or social responsiveness; on the
contrary, financial rewards, certificates, and gifts are effective only in the short run.
This is confirmed by Stachowska and Czaplicka-Kozłowska (2017), who conducted
a questionnaire survey among non-academic workers of the university Warmai and
Mezury in Olsztyn (Polandu). The authors concluded that employee motivation is
influenced especially by the following factors: reward for work performed, career growth,
personal development, human relationships, and effective communication.
The study by Insan and Yasin (2021) aimed to analyse and explain factors influencing
employee motivation and employee performance. Six out of seven hypotheses formulated
were accepted; one was rejected. The author concluded that managers need to pay more
attention to the relationship with their subordinates, ensure fair wages and
remunerations, and improve their comprehension and approach to employees. The
research was conducted within 42 cooperating units in Makassar City. The data were
collected by means of questionnaires and interviews (Insan and Yasin, 2021).
Many researchers see money as a motivational factor. It is often considered to be a symbol
of success, often associated with comfort and safety (Engelberg and Sjöberg, 2006). This
is advantageous for managers, since they can use money as a strategy, and money can
have a large impact on employee performance.
Employee motivation is of great importance for any successful organization. Each
company should focus on motivating human resources if it aims to be competitive in the
market and avoid situations such as problems with retaining employees, which may have
a negative impact on their business (Pârjoleanu, 2020).
COVID-19 has had a huge impact on the lives of people all over the world, and affected the
level of employee motivation. The objective of the study by Sudershana, Satpathy and
Patnaik (2021) was to map the impact of this pandemic on employee engagement in
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companies that specialize in information technologies. In this research, both secondary

and primary data were used. The study aimed at introducing new methods of how to
retain and motivate employees in times of crises such as the COVID-19 pandemic COVID-
19 (Sudershana, Satpathy and Patnaik, 2021).
The COVID-19 pandemic has negatively affected all areas of human life all over the world,
including people´s motivation. An important task of all managers is to keep their
employees positive and motivated. The objective of the research was to define the impact
of the COVID-19 pandemic on the motivation of employees in micro-enterprises and small
enterprises operating in Slovakia. The development of employee motivation was analysed
in three areas: finance, work, and relationship. In the years 2017 – 2020, 848 respondents
were addressed through stratified sampling. A significant decrease in the respondents´
preferences was recorded in the case of all motivational factors under review. Testing
confirmed the existence of statistically significant differences during the year 2020
compared to previous years when examining the following motivational factors: basic
salary, job security, a good work team, communication at work, and the approach of the
superior. The main research benefit is the finding that the COVID-19 pandemic has
affected also the area of employee motivation (Hitka et al., 2021).
The study submitted aims to answer the following questions: Are employees of the
company Hauser s. r. o. properly motivated? What factors are the most effective ones?
Methods and Data

The main objective of this study is to assess the way of motivating employees in the
company Hauser s. r. o. and evaluate whether the employees of this company are properly
motivated, or to identify the most effective factors of their motivation related to their
performance. The objective will be achieved through analysing the incentive system in the
company by means of a questionnaire survey. In the conclusion part of the paper, changes
related to possible shortcomings identified in the area of motivation are suggested which
may contribute to overall higher employee satisfaction.
The most suitable method of data collection is an online questionnaire in the platform
www.survio.com. The link to the online questionnaire is distributed to the employees via
e-mail. The questionnaire survey is conducted between 5 April 2021 and 12 April 2021
with the participation of 110 respondents. The questionnaire consists of 12 questions
examining the corporate system of incentives. The questionnaire survey will be
anonymous so that the respondents can answer the questions without any limitations. In
the introductory part, the questionnaire focuses on the basic demographic data on the
respondents, such as gender, age, and the education attained. The following part contains
questions concerning employee motivation.
The questionnaire contains close-ended questions where the respondents choose one or
more possible options, and semi-open questions with predefined answers, and an option for
free answer. The questionnaire also contains open-ended questions, which enable the
64
respondents to express their opinion but also make it difficult to interpret the results
obtained. There are also questions where respondents assign points to options based on their
preferences. The questionnaire will be evaluated using the statistical functions in MS Excel.
Results
Time necessary for completing the questionnaire varies from less than one minute to more
than one hour. In most cases, the completion of the questionnaire took 5–10 minutes.
The first question focused on the gender of the respondents. 81 men (73.6%) and 29
women (26.4%) participated in the questionnaire survey. The resulting ratio confirms the
structure of the company. Men mostly work at an assembly line, while women work rather
as administrative workers. The second question asked about the age of the respondents.
The results show that most employees of the company are at the age of 26-45 (58.5%). The
employees at the age of 46-55 accounts for 25.2%, while the employees not older than 25
account for 11.4%. The least represented age category are the employees at the age of 56
and older (4.9%). The employees of Hauser mostly completed secondary education with a
diploma (38.4% of the respondents) or vocational education with an apprenticeship
certificate (34.8%). The highest level of education attained is university education (19.2%)
and higher vocational education (4.4%). Only 3.2 % of the respondents completed basic
education only. Nearly a half of the respondents (49.8%) have been working in the company
for 1-5 years, while 20.2 % of the respondents have been working in the company for 6-10
years. 18.4% of the respondents have been working in the company for more than 10 years.
These employees are very important for the company, since they have a lot of experience
and can thus help their less experienced colleagues. The employees working in the company
for less than a year account for 11.6%. The question concerning employee satisfaction was
answered positively by most respondents. A total of 85% of the respondents are satisfied
with their employment, 15% are not satisfied. As for the question of whether the employees
consider their work to be interesting, the answer was “Yes” in 80% and “No” in 20%. The
responses to these questions indicate that most of the respondents are satisfied with their
work and consider it to be interesting.
Another question concerns the motivation provided by the superior. The purpose of this
question was to find out whether the employees feel adequately motivated by their boss.
57% of the respondents answered positively to this question, while 43% answered “No”.
As for career growth, 40% of the respondents feel they have this possibility, while a total
of 55% of the respondents answered they rather do not have this possibility, and 5% of
the respondents provided negative answer to this question.
In the following question, the respondents chose from several options concerning their
motivation to better performance. The results have shown that the biggest motivation is
the wage (52.4%) and good relationships at the workplace (42%). A strong incentive is
also additional financial rewards (31.6%), as well as job security (30.8%). Many
employees consider job content to be a good motivation for better performance (38.4%).
Employee benefits are motivating for 20.4% of the respondents. The least motivating
65
factor appears to be the name and the prestige of the company (12%). 4.8% of the
respondents chose the answer “Other”, e.g. good feeling from the job well done,
interesting job, or fair evaluation from the superiors.
Figure. 1: What motivates employees to better work performance
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
Source: Author
For the next question, the employees were asked to rank given work values from 1 to 7,
where 1 indicated the most preferred factor, while 7 the least preferred one. By means of
the weighted mean, the overall ranking of these values was created. The most preferred
value selected by employees was the wage, i.e. financial remuneration is in the 1st place.
This was followed by pleasant working environment, job security, and career growth,
recognition from the superior, satisfaction, and reward for completing the assigned task.
The least preferred factor was flexible working hours.
As in the previous question, the employees were asked to rank given values from 1 to 5
according to which values they appreciate most at work. The most important value
appears to be a good working team, as well as an adequate wage. The employees also
appreciate a pleasant environment, while job security ranks second to last among all
values. Working hours were again ranked last.
The next-to-last question aimed to find out what the employees think about their wages
in relation to the demands of the job. A total of 70 respondents consider their salary
adequate to the demands of the job, while 21 respondents do not agree. 19 respondents
were unable to assess whether their wages correspond to the demands of the job or not.
The purpose of the last question was to identify the wishes and possible suggestions
related to the motivation from the side of employees. The respondents were free to
express their opinion; each respondent was asked to provide his/her own answer.
Seventy seven respondents did not make any suggestions or recommendations. The
suggestions provided included mostly financial rewards, such as a bonus for work without
66
absence or for work well done. The employees would also appreciate any support related
to free-time activities or sports activities, and the overall support at the workplace
provided by their superiors.
Discussion
The results of the questionnaire survey showed that more than half of the respondents do
not have the possibility of career growth. To expand the opportunities for career growth,
the company could introduce an internal rotation system within the individual divisions.
This way the employees could understand the processes occurring within individual
divisions. Each employee should feel the company values its employees and encourages
their personal and professional development (Nohria, Groysberg and Lee, 2008). By
offering training and creating conditions for the education of their employees, employers
can positively influence their motivation (Salanova and Kirmanen, 2010). As seen from
the results of the questionnaire survey, insufficient motivation from the side of superiors
is a big problem. The most common reason is the mistaken assumption that employees
are familiar with specific procedures, and their mastering for granted. This could be due
to the fact that they do not lead their employees to contact them in case of any problems
(Stachowska and Czaplicka-Kozłowska, 2017). Employees try to conceal their problems
or pretend they are familiar with the correct procedure; they believe they are supposed
to know how to proceed, and lack of knowledge could lead to worse evaluation. Our
recommendation is to extend the offer for training of managers in the area of leadership
and to create a system of training focused on motivational skills, effective communication,
and self-knowledge. Superiors should be able to listen and perceive the requirements and
needs of employees and help them if help needed. It is important to praise properly the
employees for the job well and timely done. This is important not only in order to enhance
the motivation but also to point to the employee´s correct behaviour or work (Insan and
Yasin, 2021). It is also appropriate to praise in the situation when the employee has not
finished the task assigned but the procedure is correct and the employee needs some
encouragement. This might motivate employees to perform better; employers can thus
create a quality and motivating environment (Stachowska and Czaplicka-Kozłowska,
2017). Therefore, we recommend taking steps which might lead to better employee
motivation and thus to better prosperity of the company and satisfaction of the
management and all employees.
Conclusion
Motivation is one of the most important areas of human resources management in any
company. The main incentive for employees is usually an adequate salary or wage. A
properly functioning incentive system is important for the success of the company as well
as its employees. Companies need to create working conditions that would enhance
employees to improve their performance. Motivated employees work better and are a role
model for their colleagues.
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The objective of the paper was to ascertain the method of motivating employees in the
company Hauser s.r.o. and assess whether the employees are motivated appropriately, or
to find out which factors are the most motivating ones for them in relation to their
performance. This paper provides recommendations, which may increase the overall
satisfaction of the employees, increase their motivation, and improve their performance
as well as the performance of the whole company.
This work is divided into two parts. The first part includes the literary research, while the
second one is focused on the questionnaire survey in a selected company, whose objective
was to find out whether the employees of Hauser s. r. o. are appropriately motivated and
which factors are the most motivational ones in relation to their work performance.
Moreover, recommendations are made, which may improve the motivation of the
employees as well as the better prosperity of the company and satisfaction of both
management and all employees. The questionnaire was answered by 110 employees. The
results of the questionnaire showed that the employees in this company are satisfied with
their work and consider it to be interesting. Their work motivation would be enhanced by
a more frequent recognition from the superior for the job well done. The superiors should
be able to value a well-performed task. The solution proposed is based on direct
communication and interest in the employees. By direct communication, praise, or
recognition, the superiors show their interest in the employees; managers should care
more for their employees and motivate them to perform better. Such efforts will pay off.
For the company, it is important to strive for constant development and improvement in
this area. Similarly, employee motivation should not be underestimated, since the overall
prosperity of the company depends on the performance of all employees. For this reason,
the aforementioned recommendations were made, which may help this company improve
this area of human resources management. Motivation is a very topical issue today;
therefore, we have decided to focus on it. we believe that this paper and its results
contribute to increased employee motivation.
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Viktorie Kováříková, Institute of Technology and Business in České Budějovice, Faculty of
Corporate Strategy, Okružní 10, 370 01 České Budějovice, Czech Republic,
Ing. Miluše Balková Ph.D., Institute of Technology and Business in České Budějovice,
Ing. Iva Klementová Ph.D., Institute of Technology and Business in České Budějovice,
70
A historical excursion through the development of

cryptocurrencies in the world
Jiří Kučera1, Tomáš Andelík2
1University of Žilina, Faculty of Operation and Economics of Transport and

Communications, Department of Economics
Valuation
Abstract
In this paper, the topic of cryptocurrencies is investigated. The aim is to explain the
basic characteristics of four selected cryptocurrencies, to show what the investment
in these cryptocurrencies would have looked like in the last two years. Each of the
cryptocurrencies examined varies greatly in both purpose and effectiveness. We use
the methods of performance comparison and technical analysis. The aim of the article
is to compare Ethereum and Bitcoin and to show the effect of the coronavirus
pandemic on the development of cryptocurrency prices. The results show that
investments in Ethereum or Bitcoin have been the most profitable in the last two
years. Regarding the period of the coronavirus crisis, the most favorable investment
was Ethereum.
Keywords: cryptocurrency, covid, investment, price development, bitcoin, ethereum,

blockchain
Introduction
The emergence of cryptocurrencies can be dated to the beginning of the 21st century,
more precisely around 2009, when the world was dealing with a financial crisis. The most
discussed cryptocurrency in expert circles is Bitcoin (Nadarajah and Chu, 2017). It is a
topic that some of us encounter on a daily basis as its price has risen exponentially in
recent years (Pickard, 2021). Despite the great popularity of this cryptocurrency, there is
only a fraction of experts who understand this cryptocurrency, understand the issue of
virtual currencies and the development of their prices.
71
Despite the volume of the topic of cryptocurrencies, there are still many new, current
trends that deserve the readers' attention. In terms of historical development,
cryptocurrencies have proved to be very interesting worldwide in a relatively short time,
whether for economic or financial reasons (Akhmatov and Roienko, 2020). The concept
of globalization also comes with new modern technologies that allow us to conduct
transactions worldwide in seconds, to communicate in a way that people could not even
have imagined 20 years ago or invest from the comfort of our home. What can and
probably has affected the price of cryptocurrencies is the coronavirus crisis.
Akhtaruzzaman, Boubaker and Sensoy (2021) deal with this topic not only from a
financial point of view.
Cryptocurrencies already have a global impact and great things can be expected of them
in the future. Some even consider cryptocurrencies to be the invention of the century.
Suyambu, Thiraviya and Janakirani (2020) share this view, but also mention other
options. Everyone must have heard of Bitcoin, but what about Ethereum, Ripple or
Litecoin?
So, what did the history and price development of the most famous 4 cryptocurrencies
look from 2009 to 2021? What are the main differences in the characteristics of the 4
cryptocurrencies and what makes each one interesting? What is the impact of the
coronavirus crisis on the development of cryptocurrency prices? How does the purpose
and properties of the second best-known cryptocurrency, Ethereum, differ from the giant
known as Bitcoin? Bringing answers and offering a historical excursion are the aims of
this paper.
The aim of this paper is to make a historical excursion of cryptocurrencies from 2009 to
the present and to find out how much an invested USD100 in cryptocurrencies one and
two years ago would have earned. Subsequently, we present the basic differences in the
characteristics of the cryptocurrencies Bitcoin, Ethereum, Ripple and Litecoin. Last but
not least, we will state the impact of the coronavirus crisis on the development of
cryptocurrency prices. Finally, we will mention how the purpose and features of
Ethereum differ from Bitcoin and compare them and also show how similar they are.
Within this seminar paper, the following research questions were determined:
V1: What would a USD100 investment in BTC, ETH, XRP, LTC cryptocurrencies look like?
V2: What are the main characteristics of the 4 investigated cryptocurrencies?
V3: How do the purpose and properties of Ethereum differ from Bitcoin and how are they
similar?
V4: What impact did the coronavirus crisis have on the development of cryptocurrency
prices and what investment was the most profitable?
72
Literature research
The topic of cryptocurrencies is relatively new, however, the history of money itself dates
back thousands of years, when the so-called barter trade was the equivalent of money.
Through metal currency to paper money, we have reached a time when society operates
on the basis of payment cards and now also cryptocurrencies. Allen and Bryant (2019)
give a brief history, overview and characteristics of money. As for the current monetary
system, it operates on two major currencies - the euro and the dollar (Rzayeva, 2019).
Fauzi et al. (2020) argue that now is the time for the rise of virtual currencies and digital
coins traded through the blockchain market. Rzayeva (2019) shares this view and also
argues that the market needs to be transformed, adding that this process of adaptation
will be long and unpredictable.
The main goal of each country is to ensure sustainable economic growth (Rzayeva, 2019).
This growth brings countries together into one global system through monetary policy
(Rzayeva, 2019). Lapina et al. (2020) argue that despite the global approach to
cryptocurrencies, each country views them differently. In Switzerland, for example, in
2018, the Minister of Economy announced that the country planned to become the first
crypto-nation in the world. According to statistics, the country with the largest number of
cryptocurrency users is in Nigeria, where they are used mainly due to expensive cross-
border transport. In contrast, there are countries where cryptocurrencies are illegal -
Algeria, Saudi Arabia, Bolivia (Nasir et al., 2020).
Cryptocurrencies serve mainly as a digital asset, speculative investment, exchange
medium (online), form of payment or for non-monetary use (Gil-Cordero, Cabrera-
Sánchez and Arrás-Cortés, 2020). Transactions work via a so-called blockchain. Weiss et
al. (2019) characterize blockchain as a database technology that is decentralized and in
which the data owner has constant control. Their decentralization makes them
exceptional. Forte, Romano and Schmid (2015) are of the opinion that blockchain
technology is one of the first identifiable implementations of decentralization models that
have the potential to reorganize all possible types of human activities.
Gidea et al. (2020) analyze four major cryptocurrencies (Bitcoin, Ethereum, Litecoin, and
Ripple) and use time series analysis as well as topological data analysis. Casino, Dasaklis
and Patsakis. (2019) aimed to describe and explore the current state of blockchain
technologies on the basis of a structured, systematic overview and thematic content
analysis and their possible applications. Dibrova (2016) works with an overall analysis
and estimation of risks related to possible development as well as insufficient regulation,
where it indicates the extent of potential development of cryptocurrencies. Gil-Cordero,
Cabrera-Sánchez and Arrás-Cortés, (2020) examines the factors that influence the
intention to use cryptocurrencies by creating a new research model and using the "Partial
Least Squares" (PLS) method by collecting data and measuring variables. Casino, Dasaklis
and Patsakis. (2018) use descriptive analyzes of 260 articles between 2014 and 2018 to
provide interesting insights into current research trends in blockchain technologies and
its application.
73
Bitcoin is often compared to the gold standard due to inflation and is called digital gold.
Dyhrberg (2016) largely deals with this topic, where they describe the advantages,
disadvantages of bitcoin against the US dollar. The safety of cryptocurrencies is also an
issue. It is difficult to really find out who made the payment, so it can be used to buy
weapons or support terrorist attacks (Lapina et al., 2020). Dibrova (2016) shares this
view, where they also cite money laundering or illegal activities in general as examples.
In the example, it is similar to dynamite, which was not initially expected to be misused.
The cryptocurrency Ethereum holds the second place in terms of market capitalization.
The common characteristics of Ethereum and Bitcoin is that they are both decentralized
and run on a blockchain database. Ferretti and D’Angelo (2020) call Ethereum
programmable money. Ethereum and Bitcoin each have a completely different purpose
and properties. Mariana, Ekaputra and Husodo (2021) obtain data from coindesk.com to
analyze the development of Bitcoin and Ethereum as a possible hedge for money in the
coronavirus crisis. They also find that Ethereum may be a better hedge than Bitcoin during
a short-term stock market downturn, but Ethereum has higher yield volatility than
Bitcoin. However, their results are in conflict with Bouri, Shahzad and Roubaud (2020),
Conlon and McGee (2020) and Corbet et al. (2021), mainly due to the short-term focus.
The development of the coronavirus crisis has had and will have a significant impact on
the cryptocurrency market. The topic is handled by Umar and Gubareva (2020) using
wavelet analysis and descriptive statistics for time series. Al-Thaqeb, Algharabali and
Alabdulghafour (2020) work with the EPU (Economic Policy Uncertainty) index and also
focus on the future development not only of cryptocurrencies, but of the entire market.
To fulfill the goal and answer the research questions, we choose the method of document
analysis for data collection and we choose comparative analysis for data processing and
evaluation.
Methods and Data

For collecting data with the development of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP)
and Litecoin (LTC) cryptocurrencies, we will use document analysis and website analysis.
Document analysis is based on Scopus and Web of Science databases. Here we will use the
information from previous authors, mainly to determine the volatility of
cryptocurrencies. We will focus mainly on the short-term development of all 4
cryptocurrencies since 2019. Gidea et al. (2020) used coindesk.com to collect data, using
document analysis. However, we will use bitinfocharts.com, which, as one of the few,
offers an overview of the development of Bitcoin since 2010, and finance.yahoo.com for
the remaining cryptocurrencies. The website provides an overview of current prices and
the history of each cryptocurrency. We also compare the development and volatility of
each of the cryptocurrencies. The impact of the coronavirus crisis will be assessed from
January 2020 to April 2021. The assessment will once again be based on data from
finance.yahoo.com.
74
We will use the following methods for data processing: comparison method, technical
analysis. We will compare the 4 aforementioned cryptocurrencies, according to the time
point of view, with the help of Excel charts, which will serve as the main tool for calculating
the highest profitability. Of the two investment models, the most important will be the
profit, which we calculate using data from the chart. For both models, we will calculate the
value of cryptocurrencies that can be purchased for USD100. We then calculate the
percentual profit for each model (2019-2020 and 2019-2021). Finally, we calculate the net
profit from the percentual profit (i.e., subtract the original investment of USD100). We will
also use the comparison method to compare cryptocurrencies, but here we will focus more
on how they differ and how they are similar. We will use this method mainly to compare
Bitcoin and Ethereum. The data is based mainly on internet sources - databases, websites.
Results
Before you decide to invest in cryptocurrencies, you need to know at least the basic
characteristics. Although the development of BTC and ETH does not have such a historical
range as, for example, shares or bonds, both cryptocurrencies showed an average annual
growth of up to 500% in a short timeframe (only the last 2 years were examined). We
would also state here that the two cryptocurrencies do not have an inverse relationship
to each other, i.e., when one decreases, the other may increase, as the two
cryptocurrencies are very different and each have a different target.
The research is that USD100 is invested in each of the 4 cryptocurrencies mentioned. We will
compare 2 periods - from May 2, 2019, to May 2, 2020 (annual) and from May 2, 2019, to May
2, 2021. We present all developments in charts. In order for everyone to be able to imagine
the percentage growth, we will also present the net profit in Czech crowns (CZK). As for the
exchange rate of the US dollar against the Czech crown, it will be based on the arithmetic
average for the given year(s). We will then compare and evaluate which investment would
have paid off the most. Graph 1 shows the development of price of USD against CZK.
USD/CZK
The exchange rate of the US dollar fluctuates just like any other currency. During the
period under review, the lowest exchange rate was 21.14 USD/CZK (i.e., the Czech koruna
was the strongest at this point). In contrast, the highest exchange rate was 26.03 USD/CZK
(the least suitable for exchanging CZK to USD). In order to carry out the research without
complications, we calculated an average of 22.51 USD/CZK in a one-year period and 22.85
USD/CZK in a two-year period. We have already mentioned that the investment was 100
USD/CZK, i.e., in the one-year period it is 2,251.09 CZK and 2,285.49 CZK in the two-year
period.
75
Graph 1: USD/CZK development chart

Kč30,00
Kč25,00
Kč20,00
Kč15,00
Kč10,00
Kč5,00
Kč-
Source: Authors.
Bitcoin is based on a blockchain and works as a secure decentralized payment system.

This is the first established cryptocurrency, launched in 2009, with the greatest liquidity.
Almost every country allows this method of payment. The network itself verifies that
payments are legitimate and not misused. BTC has the largest market capitalization
(1TR/USD) of all cryptocurrencies, whether it will keep its position is pure speculation
though. BTC is obtained either by purchasing or mining on your computer, where your
computer solves complex equations. The main purpose of BTC was to serve as an
alternative to other fiat currencies (£, €, CZK) operating in the given countries. It serves
as a store of value and also as a medium of exchange. Graph 2 shows the development of
the BTC price in USD.
Graph 9: BTC-USD development chart

$70 000,00
$60 000,00
$50 000,00
$40 000,00
$30 000,00
$20 000,00
$10 000,00
$-
Source: Authors.
76
BTC/USD/CZK
Bitcoin, as the best-known cryptocurrency and with the largest market capitalization,
now does not appear to be a bad investment. Unfortunately, cryptocurrency is highly
volatile, so it is important when to buy. First, we will present a one-year investment
model. 100 USD (2,251.09 CZK) was purchased on May 2, 2019, at a price of 1 BTC for
5,520 USD. For this amount, we obtained 0.0181159 BTC, which doesn't look like a big
number. Therefore, if we take into account the average exchange rate of 22.51 USD/CZK
and not investing more money in this cryptocurrency, we will have 0.0293596 BTC on the
same day a year later, i.e., the price of 1 BTC rose from USD 5,520 to USD 8,946 during the
year, which is a growth of 62%. The portfolio is now worth USD162.07 and the net profit
is USD62.07. This model ended with the money being withdrawn on that day and no
longer being invested. We will now compare this model with a two-year model. In this
model, the money was not withdrawn from the bitcoin exchange, but was left in the
account so that it could continue to grow. If we take it from the beginning of the
investment, we have 0.0181159 BTC in 2019 at a price of 5,520 USD. The change is now
in the USD/CZK exchange rate, which now stands at 22.85 instead of the original 22.51.
We do not invest any more money in the account within the two years and wait for the
market to develop. After two years, we find that out of the original amount of 0.0181159
BTC, we now have 0.1871193 BTC, or 1,032.90 USD (23,601 CZK). Thus, net profit is
932.90 USD and percentage growth over those two years is 1,033%. The price for 1 BTC
is now (May 2, 2021) 57,016 USD (1,186,924 CZK).
Tab. 1: Results of Bitcoin

BTC
Price for 1
Date 100USD/BTC % Growth Net profit
BTC
May 2, 2021 57,016 0.1690034 933% $ 932.90
May 2, 2020 8,946 0.0293596 162% $ 162.07
May 2, 2019 5,520 0.0181159 100% x
Source: Authors.
Ethereum was founded in 2015 and serves as a software platform (also based on
blockchain), which enables decentralized transactions. From the beginning, ETH has been
more than just a payment system, giving developers more opportunities to create new
applications. ETH recorded growth of up to 13,000% between 2014–2017 (Bhosale and
Mavale, 2018). Ethereum is mined in a similar way to BTC, but with ETH, miners charge a
fee for confirming the transaction, in so-called tokens, which power the ETH network. It
is currently the most developed blockchain project in the world with a market
capitalization of around 450B/USD. Most decentralized applications are based on
Ethereum. ETH uses the Ether currency, which is used only in the Ethereum network.
Graph 3 shows the development of the Ethereum price in USD.
77
Graph 10: ETH-USD development chart

$3 500,00
$3 000,00
$2 500,00
$2 000,00
$1 500,00
$1 000,00
$ 500,00
$-
Source: Authors.
ETH/USD/CZK
Ethereum is popular mainly due to its potential use in the future. So let's start, as with
BTC, by introducing two models. The first is a one-year investment, starting on 2 May
2019, and ending on 2 May, 2020. The USD/CZK exchange rate is the same as for
investments in BTC (2,251.09 CZK in the first period and 2,285.49 in the second). We
invest 100 USD at the price of 162.12 USD for 1 ETH. From this, we will have 0.616816438
ETH. As with BTC, we do not invest any more money in the account and wait 1 year. After
this time, we will have 0.819232356 ETH in our account, which represents a 33%
increase, and from the initial amount we will have 132.82 USD (2,989 CZK). Net profit is
32.82 USD. In the second model (22.85 CZK / USD), Ethereum price developed from the
original 0.616816438 ETH to the incredible 11.23146718 ETH, which is 1,820.88 USD
(4,1607 CZK). Net profit is 1,720.88 USD and percentage growth is as high as 1,721%. That
is, from the original price in 162.12 (2019) to 2,952.06 (2021) for 1 ETH.
Tab. 2: Results of Ethereum

ETH
Price for 1
Date 100USD/ETH % growth Net profit
ETH
May 2, 2021 2952.06 11.23146718 1,821% $ 1,720.88
May 2, 2020 215.33 0.819232356 133% $ 32.82
May 2, 2019 162.12 0.616816438 100% x
Source: Authors.
Litecoin was created in 2011 and was supposed to be something like silver to Bitcoin gold
(Hameed and Farooq, 2020). It currently holds 11th place in terms of market
capitalization. Like BTC, Litecoin is based on a global payment network (open source) and
is not controlled by any official body or bank. It also works on similar source code as BTC.
78
There is another similarity between Bitcoin, in that it is limited to a certain number -

84,000,000 pieces (compared to 21,000,000 pieces of BTC). Le Tran and Leirvik (2020)
state that from their research, LTC is the most effective cryptocurrency and Ripple the
least effective cryptocurrency. This year's data suggests that LTC would not be a bad
investment, but there are better alternatives in terms of growth. LTC is designed to be
used for cheaper transactions and to be more efficient for everyday use. Graph 4 shows
the development of the LTC price in USD.
Graph 11: LTC-USD development chart

$ 350,00
$ 300,00
$ 250,00
$ 200,00
$ 150,00
$ 100,00
$ 50,00
$-
Source: Authors.
LTC/USD/CZK
The last cryptocurrency examined is Bitcoin-based cryptocurrency. The first model starts
at 73.77718 USD for 1 LTC. For 100 USD, therefore, it is 1.35543274 LTC (2019). After 1
year (exchange rate 22.51 CZK/USD), the value of the portfolio, as with XRP, is in the red
by 33%. We now have only 0.90813994 LTC (price 1 LTC - 49.45805 USD) and we are at
a loss of 33 USD (742.83 CZK). The second model, from 1.35543274 LTC, will generate
4.94397989 LTC, i.e., a net profit of 264.7529 USD and the portfolio price is now worth
364.7529 USD (CZK 8,334).
Tab. 3: Litecoin results

LTC
Price for 1 %
Date 100USD/LTC Net profit
LTC growth
May 2, 2021 269.10437 4.943979887 365% $264.75

May 2, 2020 49.458046 0.908139937 67% $-33.00
May 2, 2019 73.777176 1.355432743 100% x
Source: Authors.
79
Ripple is a technology that serves as a cryptocurrency and at the same time as a digital
payment network through which transactions can be made between two currencies or
networks. It was created in 2012 (Hameed and Farooq, 2017). It currently has the 7th
largest market capitalization (in 2020 it was in 3rd place). XRP was created by Ripple Labs,
for the purpose of an electronic payment system called the "Ripple Consensus Protocol"
(Hameed et al., 2017). Ripple is just a company name, while XRP is the cryptocurrency
token itself. XRP is unique in that it works like a currency exchange with a low commission
(it pays off when you want to exchange money but don't want to pay large fees). Another
interesting thing is the speed of payment itself, where the average time is only 4 seconds
(the fastest of all 4 analyzed). In terms of energy, the consumption of XRP is much lower
than that of BTC mining. As one of the few cryptocurrencies, XRP has support from a large
number of banks (Union Credit, BoA, NBF, American Express). Graph 5 shows the
development of the XRP price in USD.
Graph 12: XRP-USD development chart

$ 2,00
$ 1,80
$ 1,60
$ 1,40
$ 1,20
$ 1,00
$ 0,80
$ 0,60
$ 0,40
$ 0,20
$-
Source: Authors.
XRP/USD/CZK
We will use the same principles and resources again - 100 USD and 2 models. We start at
0.303239 XRP for 1 USD (30.3239 XRP). Under the same conditions, after 1 year we will
be at a loss of 26.16%. That is, from the original 30.3239 XRP to just 22.439686. Therefore
74 USD (1,665.74 CZK). What happens if we leave the money in the account for another
year (the only change is again at the USD/CZK exchange rate from 22.51 to 22.85)? The
price of 1 XRP will change from 0.303239 to 1.562641 over a period of 2 years, i.e., 515%
growth and a net profit of USD 415.31663 (CZK 9,489.985). The total value of the portfolio
is now 515.31663 USD, and we own 156.2641 XRP, instead of the original 30.3239.
80
Tab. 4: Ripple results

XRP
Price for 1 Net

Date 100USD/XRP % growth
XRP profit
May 2, 2021 1.562641 156.2641 515% $ 415.32
May 2, 2020 0.223914 22.439686 74% $ -26.16

May 2, 2019 0.303239 30.3239 100% x
Source: Authors.
How Bitcoin differs from Ethereum

It is important to realize that BTC and ETH are fundamentally different ideas. BTC mainly
provides fast and secure transactions, while ETH can offer much more (digital currency,
smart contracts, decentralized applications). The number of BTCs is limited to 21,000,000
from the beginning (which makes it rare). In contrast, ETH is not limited in quantity. The
ETH and BTC payment processes are not related in any way. While the average time
before payment takes about 10 minutes for BTC, it is only 15 seconds for ETH.
What Bitcoin and Ethereum have in common

Both cryptocurrencies are decentralized (they are not issued or regulated by a central
bank or other body.). They are also both based on a blockchain, which protects them
against most unauthorized manipulations. Each of them is a digital currency, traded
through an online exchange (coinbase, robinhood, kraken). Both can be sent from this
exchange to your own crypto wallet. Another common characteristic is high volatility (this
could characterize all cryptocurrencies), where prices are able to rise or fall by 50% in
one hour. Thus, it can be seen here that the prices of cryptocurrencies are driven by
speculation (Fauzi et al., 2020).
Development of cryptocurrency prices during the COVID pandemic

The development of the coronavirus pandemic begins in Wuhan, where the first case was
reported on December 8, 2019 (Mariana, Ekaputra and Husodo., 2021). However, for the
purposes of this work, we will compare data from the site finance.yahoo.com from
February 15, 2020, to May 2, 2021. The lowest values were reached on March 13, 2020
(about -50%), similarly to the stock market. The main factor in this fall was the declaration
of a global pandemic by the World Health Organization. However, the fall proved to be
short-lived, and the price began to rise again. Thus, it can be deducted from the chart that
the values of BTC and ETH have had a similar development, however in the end, the
growth of ETH for this timeframe was 929%, in contrast to BTC's "only" 457%. The price
of LTC and XRP can be described as even more volatile than BTC and ETH, as the 3rd place
changes very often. In the end, XRP won with 379% compared to LTC with 232% growth.
Graph 6 shows the percentage growth of cryptocurrencies during the coronavirus crisis
(from February 15, 2020, to May 2, 2021).
81
Graph 13: BTC, ETH, LTC, XRP percentage growth chart
BTC
ETH
LTC
XRP
Source: Yahoo!Finance
Discussion
As for the 1st model, i.e., from 2019 to 2020, the most profitable cryptocurrency was Bitcoin,
with an annual growth of 62% (profit of 62.07 USD). The 2nd model, starting in 2019 and
ending in 2021, shows that this timeframe was the most profitable when investing in
Ethereum, with an annual growth of 1,721% (profit of 1,720.88 USD). The other
cryptocurrencies mentioned (XRP and LTC) even recorded a loss in the case of the first model.
In the case of LTC, it was a loss of 33% (the loss of LTC after the first year was 33.00 USD). In
the case of the rainbow model, LTC's value increased by 365% (net profit would be 264.7529
USD). In the case of the last of the monitored cryptocurrencies, XRP, in the case of the first
investment model, there would be a loss of 26.16% (i.e. a loss of 26.16 USD). In the case of the
second model, the value of XRP increased by 515% (net profit was 415.32 USD).
The compared cryptocurrencies (BTC and ETH) have minimum in common
(decentralization, blockchain, volatility), as they have both different properties and
purpose. Anwar et al. (2020) compared BTC and ETH in terms of blockchain and according
to their findings, the two cryptocurrencies are very similar, but upon closer examination,
ETH has been found to provide greater payment efficiency and is supported by more
applications than BTC. ETH also offers more advanced services such as smart contracts.
Finally, Anwar et al. (2020) state that ETH provides faster payments than BTC and, last
but not least, that payment with it is more secure. According to Rankhambe and Khanuj
(2019), the two cryptocurrencies also differ by different programming of the blockchain.
According to Sifat, Mohamad and Shariff (2019), cryptocurrencies are very similar to
futures. However, cryptocurrency traders cannot profit from trading on the basis of
hourly changes in their values according to movements in cryptocurrency prices, as is the
case with other types of financial equivalents and derivatives.
The last of the research questions focused on the influence of COVID-19 on the
development of cryptocurrency values in an effort to determine the best cryptocurrency
for investment. In general, the COVID-19 pandemic affected the development of the value
of all cryptocurrencies (Sahoo, 2021; Vidal-Tomás, 2021). The development of prices
during pandemic was volatile, with the biggest drop occurring on March 13, 2020. The
most profitable investment for this period appears to be Ethereum with 929% growth.
82
Abdelrhim et al. (2020) agree that Ethereum was the optimal cryptocurrency for
investment during Covid pandemic. During the COVID-19 pandemic, cryptocurrencies
also provided a refuge for the funds of many investors. This fact is evidenced by
demonstrably higher flows of finance to cryptocurrencies (Corbet et al., 2021).
Conclusion
The aim of the paper was to find out which investment was the most profitable and also
to explain the basic characteristics of the 4 cryptocurrencies examined, as well as to
outline what price developments looked like during the coronavirus pandemic and
explain how Bitcoin differs from Ethereum.
Bitcoin, which grew by 62%, had the most profitable investment model from 2 May 2019
to 2 May 2020. In contrast, for the second model, from 2019 to 2021, Ethereum secured
the first place with a percentual two-year growth of 1,721%.
We examined the period of the coronavirus crisis from 15 February 2020 to 2 May 2021.
Here, the cryptocurrency market experienced the largest fall on March 13, 2020, by
approximately 50%. But the market soon recovered. The most profitable investment in
this time period (approximately 15 months), was similar to the second Ethereum model
with a growth of 929%.
Bitcoin and Ethereum have in common that they operate through a blockchain, are
decentralized and are very volatile. Otherwise, they are practically two different things, which
differ in purpose, performance, speed of transactions, mining and number of coins in
circulation.
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Ing. Jiří Kučera, University of Žilina, Faculty of Operation and Economics of Transport and
Communications, Department of Economics, Univerzitná 8215/1, 010 26 Žilina, Slovakia,
Tomáš Andelík, bachelor student, Institute of Technology and Business in České
Budějovice, School of Expertness and Valuation, Okružní 517/10, 370 01 České
Budějovice, Czech Republic, e-mail: [email protected]
85
Language courses as tool to motivate employees

in South Bohemian enterprises
Monika Lavičková1, Monika Peka Kolafová1, Libuše Turinská1
Abstract 
Employee motivation is a key to the success of any company. There are many ways to
enhance employee motivation. This article deals with corporate training and
education in the South Bohemian region with a special focus on language courses as
a tool to motivate employees. The authors analyse how and to which extent
companies in the South Bohemian region use language courses as an employee benefit
in the form of language courses, what foreign languages are mostly taught and
required within these courses, and also employee perception of this benefit, and
whether there have been any changes related to the Covid-19 pandemic. For the
purposes of the research, a questionnaire survey was used and distributed among
employees of 20 companies in the South Bohemian Region in order to answer the
formulated research questions. Based on the results of the research, it can be
concluded that language courses are one of the most commonly used employee
benefits, although their form appears to be influenced by the number of employees in
a company. The research results also showed that the Covid-19 pandemic has affected
the form of the courses and that the respondents are fully aware of the advantages
and disadvantages of online and offline language courses.
 
Keywords: motivation, language courses, intrinsic and extrinsic motivation,
employee benefits, corporate training, South Bohemian Region
Introduction
Most companies currently strive for succeeding or even survival in this unstable market
environment. Employee motivation plays a major role in gaining a competitive advantage
in the strong competition between companies, as motivated employees are usually
86
efficient ones. Companies, regardless of their size or sector they operate in focus on
establishing a strong and positive relationship with their employees.
Nowadays, employers have a wide range of benefits to motivate their employees. In the
situation when there is a lack of qualified employees in the labour market, employers,
especially when actively looking for new employees, try to attract them by various bonuses
and benefits, e.g. extra days off, working from home, flexible working hours, company car or
phone, or financial or other support of leisure time activities, one of them being the possibility
to attend language courses. Globalisation and internationalisation are two growing trends in
the current world, and knowledge of foreign languages is being increasingly emphasized. The
knowledge of at least one foreign language increases chances for graduate employability on
the job market; the importance of this for companies is obvious. When striving for entering a
foreign or international market, having employees who speak the language of the target
market provides companies with a competitive advantage, especially those operating in the
sector of sales and services, as it enables employees to understand better the culture of the
country, helps them avoid misunderstandings in communication, and accept assigned tasks.
The objective of this paper was to analyse the offer of benefits as motivational factors
most frequently used in the companies in the South Bohemian region, with a special focus
on language courses. The paper aimed at identifying the situation in corporate language
education and the motivation of employees to actively participate in such courses. Based
on the literary research on this topic, the following hypotheses were formulated:
Hypothesis 1. Language courses are the most commonly offered benefit in South Bohemian
companies.
Hypothesis 2. Because of the vicinity of Germany and Austria, German is the most taught
language within the corporate language courses.
Hypothesis 3. Language courses are motivating for employees
Hypothesis 4: The coronavirus pandemic and the measures adopted to prevent the spread
of the coronavirus has affected the form of corporate language courses.
Literary research
The productivity of employees and the whole company is directly related to employee
motivation. A way to gain a competitive advantage in the market is to motivate and retain
human resources (Salah, 2016). Motivation thus plays an important role.
Mullins (2002) defines motivation as a driving force to achieve personal objectives and to
meet their needs or values. Motivation is based on needs, values, and personal goals.
According to the author, needs, values, and objectives are individual; logically, motivation
is also specific for each individual, as it is based on his or her needs and values, which form
individual goals. According to Váchal and Pártlová (2008, p. 41), motivation is “a complex
set of various factors that represent a driving force for human activities that regulate
87
behaviour of an individual; in a way, it is a psychological regulation of an employee´s

acting.” Dessler (2009) claims that motivation is a force that makes an employee behave
in the way that leads to achieving the goal set.
There are more types of motivation. Legault (2016) mentions intrinsic and extrinsic
motivation, where intrinsic motivation refers to the behaviour motivated by internal
reward. Deci (1973) believes that as for intrinsic motivation, there is no apparent reward
for the behaviour except for the activity itself (e.g. volunteering just because I want to
help). Extrinsic motivation is of instrumental nature; its objective is to achieve a different
result separable from the activity itself, e.g. volunteering because it looks good in CV.
According to Dobre (2013), motivation and employee performance are closely
interconnected; they are basic factors of the long-term success of any company.
Measuring company performance is important for its management, as it provides
information on the development and success of the company. On the other hand, there is
a relationship between employee motivation and efficiency of the company. Employee
dissatisfaction could negatively affect the performance and efficiency of the entire
company. Individual employees are different; therefore, they should be motivated in
different ways (advantages, benefits, job satisfaction, better working environment, etc.).
It is thus necessary for companies and their managers to understand what motivates their
employees in order to be able to maximize the performance of the company.
Traditional motivational theories focus on specific elements that motivate employees to
improve the efficiency of the company. For example, according to Maslow´s theory of needs
and motivation (Maslow, 1943), there are five basic categories of needs (physiological, safety,
social, ego, and self-actualization), while the theory of equity formulated by Adams in 1963
states that employees strive for equity between themselves and other employees. Current
research on motivation, however, is an interdisciplinary issue, which includes neuroscience,
biology, and psychology, with the aim to bring traditional theories of motivation together into
a more complex theory, which includes traditional management, human resources,
behaviour of the company with new perspectives in neuroscience, biology, and psychology.
According to Lawrence and Nohria (2002), human nature is the basis of employee motivation.
There are four basic drivers – acquiring, bonding, learning, and defending., where the reward
system is related to acquiring, company culture is connected with bonding, learning is
connected with the possibility to adjust working conditions or work as such, and the
processes of managing the performance and acquiring resources are connected with
defending (Lawrence and Nohria, 2002, Nohria, Groysberg and Lee., 2008).
Employee motivation is one of the basic tasks of a manager. According to Kmecová and
Teřlová (2017), a manager is a person who “stimulates and manages activities of other people
in the organization, tries to make employees work so that the objectives of the organization
are achieved.” It is important for managers to be aware of employee interests, priorities, and
goals. Managers need to know the primary intrinsic motivation of employees prior to creating
the motivational system of the organization in order to be able to stimulate the efforts of the
employees to achieve maximum results with minimal costs. In some cases, profit or material
88
rewards are less important than recognition, flexible working hours, more days off, career
growth, etc. When adequately used, these methods enable retaining the loyalty of employees
and ensure a high level of their motivation.
Companies motivate their employees by means of both financial and non-financial factors
that improve employee satisfaction and motivate employees to better performance. Both
financial and non-financial factors are directly related to work performance. According
to Burton (2012), an efficient system of recognition and rewards might motivate
employees, thus increasing the productivity of the whole organization.
Many researchers believe that financial motivation plays a more important role when
motivating employees since money enable employees to satisfy their basic needs as well their
need to own things and “have power”. Gupta et al. (1998) concluded in their research that
financial motivation is indeed effective. However, there are also non-financial (internal)
factors which play an important role in motivating employees. According to Mansaray-Pearce
et al. (2019), non-financial motivational factors include recognition provided by the
superiors, job rotation, degree of independence in performing assigned tasks, success,
development of competencies, the possibility to plan and work independently, being
informed, possibility to participate in determining the goals. Non-financial motivation is very
important because “if employees are not satisfied with these aspects, even well-paid
employees may leave the company”. Companies with a sophisticated system of non-financial
benefits may attract motivated and talented employees (Armstrong and Brown, 2010).
Preference of financial or non-financial motivation is related to a number of factors such as
the age of employees (Ashkanani, 2014, Hitka et al., 2019), job position (Asad and Dainty,
2005), gender (Lorincová et al., 2019), etc. According to Mansaray-Pearce et al. (2019), non-
financial rewards affect motivation more when salary achieves a certain level.
Armstrong et al. (2010) admit that management of rewards can never be a hundred
percent right. The task of a manager is to find the best system for each organization.
Language competencies are becoming increasingly important mainly due to strengthening
cooperation with foreign countries. According to Tlapa et al. (2019) published by the Ministry
of Foreign Affairs of the Czech Republic, Czech export in 2018 amounted to CZK 4.2 trillion,
which accounted for 67% of the GDP.
An extensive survey conducted by the Czech statistical office concerning further education
and training of adults, the interest in further education increases with the degree of education
attained. Further training is predominantly focused on language courses; 78% of the courses
were attended for the purpose of work. 88% of such courses were fully or partially financed
by employers; 79% of the courses were attended within the official working hours. According
to the CSO, one-fifth of the respondents study foreign languages for the purpose of work; on
the other hand, almost 42% of adult Czechs believe they do not need any further education.
This argument was mentioned mostly by men; women do not attend such courses for family
reasons.
89
Data and methods

For the purpose of the research, employees of 20 companies operating in various sectors
in the South Bohemian region were addressed. The data for the research was collected by
means of a questionnaire survey containing 20 multiple-choice and open-ended
questions. The questionnaire was compiled and distributed among the employees by
means of both paper and web-based questionnaire (Survio). The responses obtained by
means of paper questionnaire were evaluated together with the responses obtained via a
web-based questionnaire. The compiled questionnaire is presented in Appendix 1.
A total of 50 employees of different participated in the survey, where the research sample
consisted of 29 women and 20 men; one person did not want to specify the gender. Most
responses (29%) were obtained from the respondents aged 41–55 years, which accounted
for 58%. As for the job position of the respondents, 20 respondents work in administration,
12 respondents in production, 4 respondents in management, and 14 respondents selected
the category “Other”. The structure of the research sample is shown in Tab. 1 below.
Tab. 1 Structure of research sample

GENDER
Respondents by gender Number Percentage
Male 20 40%
Female 29 58%
Doesn´t say 1 2%
In total 50 100%
AGE GROUP
Respondents by age Number Percentage

Male (18-25) 4 8%
Male (26-40) 6 12%
Male (41-55) 10 20%
Male (over 55) -
Female (18-25) -
Female (26-40) 7 14%
Female (41-55) 21 42%
Female (over 55) 1 2%
JOB POSITION
Job position Number Percentage

Management 4 8%
Production 12 24%
Administration 20 40%
Other 14 28%
Source: Authors
90
Results
In the previous chapters, four hypotheses were formulated to meet the objective set. This
chapter presents the results of the individual hypotheses.
In order to verify the hypotheses formulated, the respondents answered a questionnaire
(online or paper form) containing 20 open-ended, multiple-choice, and closed questions.
The results were processed using the online tools of Survio. The responses to open-ended
questions were processed and analysed by the authors. Due to the extent of the
questionnaire, only the most important findings will be presented in this contribution.
Tables and graphs referring to individual questions are presented in Appendix 2.
The first part of the questionnaire concerned the basic information about the respondents
(their age, gender, position in the company – questions 1–3 in the questionnaire). In the
following part, we will focus on individual hypotheses.
Hypothesis 1: Language courses are the most commonly offered benefit in South Bohemian
companies.
Hypothesis 1 was formulated to which extent language courses are used as a tool to
increase employee motivation. The validity of the hypothesis was verified using question
5 from the Questionnaire in Appendix 1: What benefits does your company offer to its
employees? where the respondents choose from car and/or phone, meal allowance,
support of sport activities, courses to acquire/improve technical skills, and language
courses. The responses indicate that language courses, together with meal allowance, are
among the most frequently offered benefits. The analysis of the responses obtained
showed that companies usually use a combination of various types of benefits. Only 24%
of respondents stated that they can use 1 benefit only, while 4% mentioned a combination
of 3 and more types of benefits. Other questions focus in more detail on the support
provided by employers. Graph 1 below shows the structure of the responses to Question
5, indicating that the most frequent benefit is meal allowance, while language courses are
the second most common benefit.
The remaining part of the questionnaire focuses on a specific employee benefit in the form
of language courses. Here, 42% of the respondents stated that language courses are offered
to all employees. 34% of the respondents argue that this benefit is offered only to
employees in specific positions; 2% of the respondents claimed that the possibility to attend
language courses is offered to top management only, while 20% admitted they are not able
to answer this question. Question 9 dealt with the support provided to language courses
from the side of employers. As a response to this question, 42% of the respondents stated
that language courses are paid for by the employer and the employees are allowed to attend
them within their working hours. 30% of the respondents claimed that language courses
are fully paid for by the employer; however, employees can attend them in their free time
only. According to 13% of the respondents, the employer provides only partial financial
support (to certain amount) to language courses but allows the employees to attend them
within their working hours, compared to 5% of the respondents, whose courses are also
91
partially paid for by the employer but they can attend them in their free time only. Only one
respondent stated that he/she is allowed to attend the courses within his/her working
hours but without any financial support from the side of the employer. The possibility that
the employer does not provide any support to language courses, be it in the form of enabling
their attendance within the working hours or any financial support, was not mentioned;
3 persons mentioned a different form of support.
Graph 1: Employee benefits offered by companies

45 41
40
35 33
30
25
20
20 16
15
10
5 3
car, phone meal allowance sports, flexi pass

technical courses language courses
Source: Authors
Tab. 2: Support provided by employer

Form of support
Language courses are fully paid for by the employer and I can attend them within my working
hours 17
Language courses are fully paid for by the employer but I cannot attend them withi my working
hours 12
Language courses are partially paid for by the employer and I can attend them within my workig
hours. 5
Language courses are partially paid for by the employer but I cannot attend them within my
working hours 2
My employer does not finance the language courses but I am allowed to attend them within my
working hours 1
There is no support from the side of the employer 0
Other forms of support 3
Source: Authors
92
Hypothesis 2. Because of the vicinity of Germany and Austria, German is the most taught
language within the corporate language courses.
A part of the questionnaire focused on finding out which language is the most taught or
required one within the language courses offered by companies in the South Bohemian
region. There were several questions concerning the importance of foreign languages for
specific companies or specific employees (Question 4 and 14 concerning foreign
cooperation of individual companies and the respondents´ personal experience with
working abroad, and Question 5 concerning specific languages taught and required by
employers). Due to the location of the Czech Republic, it was assumed that foreign
partners and customers of the companies operating in the South Bohemian region are
predominantly from German-speaking countries (Germany, Austria) and thus the
language taught and required most by the employers is German. The analysis of the
results showed that most commonly taught languages are English 26 responses) and
German (29 responses). English was mentioned in 26 responses, while German in 29. 7
respondents admitted they do not know the answer to this question. The discrepancy
concerning the number of responses/respondents is due to the fact that most companies
offer English and German. Based on the results, we can see that the hypothesis was
confirmed; however, there is only a slight difference between German and English in
terms of the languages most frequently taught in corporate language courses.
Hypothesis 3: Language courses are motivating for employees
Hypothesis 3 focused on employee perception of language courses as a motivational tool.

The validity of the hypothesis was verified using questions 7, 11, 12, 13, 15. The questions
focused on the form of the courses; from the perspective of Hypothesis 3, specifically
question 11 is important on how the respondents perceive the language courses they
attend. The results show that the majority of respondents perceive language courses as
motivating, as 34 out of 39 respondents stated they attend language courses voluntarily
in order to improve their language skills, and 4 respondents claimed that attendance is
compulsory, yet they perceive language courses as a benefit. Only one respondent
indicated that compulsory attendance in the language courses is perceived negatively.
The motivation of employees to attend language courses is also confirmed by responses
to questions 12-14 concerning the practical use of a foreign language. The responses
indicate that 74% of the respondents need a foreign language in their position, where
22% communicate in writing only, 2% only for spoken communication, and 44% of the
respondents use a foreign language both in written and spoken communication. This
information is in a certain contradiction with the responses to Question 14, where only
28% of the respondents claim they have personal experience with working abroad.
However, we can say that the hypothesis was confirmed.
93
Hypothesis 4: The coronavirus pandemic and the measures adopted to prevent the spread
of the coronavirus has affected the form of corporate language courses
In the period when the whole world faces the coronavirus crisis, it could be expected that
various measures taken to prevent its spread will affect a lot of activities within
companies. This lead to the formulation of Hypothesis 4 above. Question 17 aimed
specifically at changes in the form of language courses. The responses indicated that in
55%, language courses were suspended due to the restrictions adopted to slow down the
spread of the coronavirus. In 30%, the form of the courses was changed, where
respondents mentioned specifically transition from offline to online form. Only 15% of
the respondents stated that the form of the courses did not change (see Tab. 2 below).
Hypothesis 4 was thus confirmed.
Tab. 3 Influence of the pandemic on language courses

Changes caused by the pandemic
No change 6 15%
Courses were suspended 23 55%
Change in the form of the courses 13 30%
Source: Authors
Discussion of results
Besides confirming or rejecting the hypotheses formulated, the analysis of the responses
provided several other interesting findings.
The first hypothesis concerned the question of whether language courses are the most
commonly offered benefit. Although the hypothesis was not confirmed, the results showed
that language courses, along with meal allowance, are the most common benefits offered by
employers. The support to language courses from the side of employers was analysed using
other questions in the questionnaire, which aimed at the nature of the language courses.
Less than 50% of the respondents stated that the possibility to attend language courses is
offered to all employees in the company; in other cases, there were certain limitations. 38%
of the respondents from the companies that support language courses stated they have the
possibility to choose the form of the course (individual or group). 22% of the respondents
can attend group courses only; 8% stated that the choice depends on the position of the
employee. Here, we can assume that company size may play a role. As the questionnaire
was anonymous, it was not possible to divide the employees into groups depending on the
size of the company they work in; however, it is probably much easier for a small company
to ensure the possibility to attend language courses for all companies. Similarly, company
size might also influence the offered form of the course. 46% can choose between individual
and group courses; 28% are allowed to attend group courses only, while 20% of the
respondents admitted that the possibility to choose depends on the position in a given
94
company. The support provided by employers might be evidenced by the fact that all
respondents confirmed support from the side of the employer, either in the form of financing
the courses or by enabling the employees to attend the courses within their working hours.
As for Hypothesis 3, we may conclude that language courses are motivating for
employees. This is evidenced by the fact that most employees attend language courses
even though they are not required to by their employer. The responses to other questions
also showed that employees are motivated by the fact that their company has some form
of cooperation with foreign companies or customers (Question 4), command of a specific
foreign language is necessary in their position, because they actively use a foreign
language at work (Question 12 and 13) for written and/or spoken communication. The
respondents had also a possibility to describe a preferred focus of the language course,
where a vast majority of respondents prefer the combination of a general language and
language for a specific purpose depending on the company´s specialization.
Interestingly, the progress of employees seems to be not checked anyhow by employers,
as the majority of the respondents (70%) state there is no control from the side of the
employer. This means most employees do attend the language courses on a voluntary
basis; it can thus be concluded that language courses do represent a benefit appreciated
and required by employees.
Due to the current situation, we considered it necessary to find out whether and how the
pandemic and the related restrictions have affected the offered language courses. The
measures adopted by the Czech government aimed at reducing the movement of persons
and required most employees to work from home, which was naturally reflected in the
organization of the language courses. The changes resulting from the measures taken
included suspension of the courses or change of their form from offline to online courses.
Only a small percentage of respondents claimed the form of the courses remained
unchanged, which may, of course, be due to the fact that some courses had been offered
in the online form even before the pandemic. We were also interested in the reactions of
the respondents to the changes (Question 18). Most of them were dissatisfied with the
suspension or the online form of the courses; as for the transition to online courses, the
respondents were asked to specify the advantages and disadvantages of this form of
teaching (Question 19). The advantages mentioned by the respondents include saving of
time due to the fact that it was not necessary to travel to courses; thanks to this, the lectors
were more flexible and willing to comply with specific requirements concerning the time
of the courses. The transition to the online form also required using specific platforms;
the necessity to learn to work with them in a way may represent another advantage. The
most frequently mentioned disadvantages were technical problems and the resulting
worse quality of picture and sound; in group courses, it sometimes happened that more
participants spoke at the same time. The respondents also mentioned they miss personal
contact with the lector; others spoke about various health problems related to spending
too much time working with a computer.
In the last question, respondents were asked to provide their opinion to the given issue.
95
Several interesting findings were obtained, which could lead to adopting certain changes,
thus improving the form of the courses for employees. The respondents mentioned e.g.
insufficient support of such courses from the side of the state, the fact that language courses
represent a way to maintain the knowledge acquired even at the times when the possibility
to use a foreign language is significantly limited due to the restrictions adopted, in some
cases, the termination of the language course lead the employees to find some others
outside andd pay for them themselves. A few respondents negatively spoke about the fact
that the company does not enable employees at lower positions to attend a language course
but expects them to be have a command of a given language. These opinions could make the
governmente think about how to make language courses accessible to a wider range of
employees, e.g. by providing financial support from the state.
Conclusion
Currently, companies have many possibilities to motivate their employees. Besides
financial motivation, there are also non-financial motivational tools that are often
preferred by many employees. For this purpose, a questionnaire was compiled, which
examined benefits in general, with a special focus on language courses and employee
motivation to active participation in such courses. Language courses might be an
employee benefit that would be beneficial both for employees and employers, as having
employees who have a command of one or more foreign languages, especially the
languages of the target foreign market would provide the company with a clear
competitive advantage. For the purposes of this research, several hypotheses were
formulated, which were confirmed or rejected on the basis of the responses obtained.
The responses showed that language courses, together with meal allowance, represent
one of the most frequently offered benefits. Companies offer various types of support. This
can be due to the fact that it is possible to address a relatively high number of employees
at the same time at relatively low costs compared e.g. to providing company car or
telephone. The possibility to choose a specific form of a language course is probably
related to the size of the company; the attendance in language courses is mostly on a
voluntary basis. This indicates that language courses are motivating for employees, which
is probably also evidenced by the fact that in terms of the content of the language courses,
most respondents prefer a combination of a general language and language for specific
purposes according to the specialization of the company. The vicinity of Germany and
Austria leads us to the assumption that the most frequently taught and required foreign
language is German. This was confirmed by the responds of the respondents; however,
the difference between English and German is not so big.
The research also confirmed that the coronavirus pandemic has had an impact on
corporate language education since language courses were suspended in most companies,
or transferred to the online environment. Within the research, the most common
advantages and disadvantages from the perspective of employees – participants of the
courses were specified.
96
Given the current situation, other possible restrictions can be expected. However, in a
way, this might represent a challenge for both employees and employers consisting in
finding a prompt and efficient way to react to such situations. Moreover, online courses
bring another advantage, as having to learn to use various platforms may help improve
employee IT skills.
The research limitation is a small number of respondents. The added value of the research
is the finding what languages and what specific form the respondents need and are
interested in, which could improve the cooperation between the educational system and
business practice in terms of language education.
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Mgr. Monika Lavičková, Centre of Language Services, Faculty of Corporate Strategy,
Institute of Technology and Business in České Budějovice, Nemanická, Czech Republic, e-
mail: [email protected]
Mgr. Monika Peka Kolafová, Centre of Language Services, Faculty of Corporate Strategy,
Institute of Technology and Business in České Budějovice, Nemanická, Czech Republic,
Mgr. Libuše Turiská, Centre of Language Services, Faculty of Corporate Strategy, Institute
of Technology and Business in České Budějovice, Nemanická, Czech Republic, e-mail:
[email protected]
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Appendix 1. Language courses as employee benefit - questionnaire
1. Gender (Choose one answer only)

a) Female
b) Male
c) I don´t want to answer
2. What´s your age? (Choose one answer only)

a) 18 – 25
b) 26 – 40
c) 41 – 55
d) Over 55
3. What is your position in the company? (Choose one answer only)

a) Production
b) Administration
c) Management
d) Other (please specify): ___________________________________________
4. Is there any form of foreign cooperation in your company? (Choose one or more answers)
a) Yes, we have a foreign partner/partners
b) Yes, we are a foreign company with a subsidiary in the CR
c) Yes, we are a Czech company with a subsidiary abroad
d) Yes, we have foreign customers
e) No
5. What benefits does your company offer to its employees? (Choose one or more answers)
a) Car, phone
b) Meal allowance (canteen, meal coupons, etc.)
c) Support of sport activities, flexi pass, etc.
d) Courses to acquire/improve technical skills (driving licence, welding course, …)
e) Language courses – please specify the languages (German, English, French, …):
_______________________________________
If your company does not offer language courses, please continue with Question 20
6. Language courses can be attended by: (Choose one answer only)
a) All employees
b) Employees in specific positions (those who work with foreign customers, management,
….)
c) Top management
d) Other specification (e.g. only full-time employees, employees with specific qualifications,
principle of seniority, etc.) Please specify:
_____________________________________________________________
99
7. Participation in language courses is: (Choose one answer only)

a) On voluntary basis (offered as an employee benefit)
b) Compulsory (required by employer in order to improve the language skills necessary for a
specific position/quality performance)
8. Can you choose a specific form of the language course? (Choose one answer only)
a) Yes, I can choose between individual or group language courses
b) I can attend an individual course
c) I can attend a group course only
d) Only employees in certain positions can choose a form of the course
e) Other – please specify: __________________________________
9. What is the support from the side of the employer? (Choose one or more answers)
a) Language courses are fully paid for by the employer and I can attend them within my
working hours
b) Language courses are fully paid for by the employer but I cannot attend them within my
working hours
c) Language courses are partially paid for by the employer and I can attend them within my
working hours
d) Language courses are partially paid for by the employer but I cannot attend them within
my working hours
e) My employer does not finance the language courses but I am allowed to attend them
within my working hours
f) There is no support from the side of the employer
g) Other forms of support – please specify: _____________________________
10. Does the employer check your progress? (Choose one answer only)
a) No
b) Yes (please specify): _____________________________________
11. How do you personally perceive the possibility to attend language courses? (Choose one answer only)
a) My attendance is voluntary, I want to improve my language skills
b) My employer requires my attendance in the language courses but the courses are
interesting for me
c) I participate in the language courses only because I have to
12. Is knowledge of a foreign language important in your position? (Choose one answer only)
a) Yes
b) No
13. Do you communicate in a foreign language at work? (Choose one answer only)
a) No
b) Yes, but only for writing
c) Yes, for both writing and speaking
d) Yes, but only for speaking
100
14. Do you have experience with working abroad? (Choose one answer only)
a) Yes
b) No
15. What kind of language courses do you prefer? (Choose one answer only)
a) General language
b) Language for specific purposes
c) Combination of both
16. Does the current form of language courses suit you? (Choose one answer only)
a) No
b) Yes
c) Yes, but I would change some things (Please specify):
_____________________________________
17. Has the pandemic and the related restrictions affected the language courses in your company?
(Choose one or more answers)
a) No, there have been no changes

b) Yes, the courses have been suspended
c) Yes, partially – their form has changed (from offline to online, from group courses to
individual courses and vice versa, etc.) Please specify:
______________________________________
18. If the courses were suspended, what reaction has it caused?

__________________________________________________________________________________
19. If the form of the courses has changed from offline to online, name please advantages and/or
disadvantages you perceive:
__________________________________________________________________________________
20. Would you like to add some more comments?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
101
Appendix 2 Graphs and tables to questions
Questions 1 – 3 Structure of respondents

Gender
Respondents by gender Number Percentage
Male 20 40%
Female 29 58%
Doesn´t say 1 2%
In total 50 100%
Age group
Respondents by age Number Percentage
Male (18-25) 4 8%
Male (26-40) 6 12%
Male (41-55) 10 20%
Male (over 55) -
Female (18-25) -
Female (26-40) 7 14%
Female (41-55) 21 42%
Female (over 55) 1 2%
Job position
Job position Number Percentage
Management 4 8%
Production 12 24%
Administration 20 40%
Other 14 28%
Question 4: Is there any form of foreign cooperation in your company?

Foreign cooperation
Foreign partner/partners 14
Foreign company with a subsidiary in the CR 28
Czech company with a subsidiary abroad 3
Foreign customers 10
No form of foreign cooperation 3
Question 5 What benefits does your company offer to its employees?

Language courses as employee benefit
English only 4 8%
German only 7 14%
English, German 22 40%
No language courses 10 20%
102
I don´t know 7 14%
Question 5: What benefits does your company offer to its employees?

45 41
40
35 33
30
25
20
20 16
15
10
5 3
car, phone meal allowance sports, flexi pass technical courses language courses
Source: Authors
Question 6: Language courses can be attended by:

Possibility to attend language courses
All employees 21 42%
Only employees at specific positions 17 34%
Top management 1 2%
Other criteria 1 2%
I don´t know 10 20%
Question 8: Can you choose a specific form of the language course?
Possibility to choose a form of the courses

Individual or group courses 18
Individual courses only 1
Group courses only 11
Only employees at specific position can choose 8
Other 1
Question 9: What is the support from the side of the employer?

Form of support
Language courses are fully paid for by the employer and I can attend them within my working hours 17
Language courses are fully paid for by the employer but I cannot attend them withi my working hours 12
Language courses are partially paid for by the employer and I can attend them within my workig hours. 5
Language courses are partially paid for by the employer but I cannot attend them within my working hours 2
My employer does not finance the language courses but I am allowed to attend them within my working hours 1
There is no support from the side of the employer 0
Other forms of support 3
103
Question 10: Does the employer check your progress?

Checking progress by employer
No 27
Yes 12
Question 10 Does the employer check your progress?

Forms of checking employee progress
Tests 10
Random participation of employer in language courses 1
Interview with employer 1
Question 11 How do you personally perceive the possibility to attend language courses?
Attendance in language courses
Voluntary attendance in order to improve language skills 34
Compulsory attendance but perceived positively 4
Compulsory attendance, negatively perceived 1
Question 11 How do you personally perceive the possibility to attend language courses?
Motivation to attend language courses - MEN
35%
55%
5%
5%
on voluntary basis
required by employers - perceived positively by employees
required by employers - perceived negatively by employees
courses not offered
Source: Authors
104
Motivation to attend language courses - WOMEN
11%
11%
79%
on voluntary basis
required by employers - perceived positively by employees
courses not offered
Source: Authors
Question 12 Is knowledge of a foreign language important in your position?

Language skills required for my position
Yes 37 74%
No 13 26%
Question 13 Do you communicate in a foreign language at work?

Foreign language used for communication at work
Only for written communication 11 22%
Written communication and speaking 24 44%
Speaking only 1 2%
I don´t use foreign language at work 14 28%
Question 14 Do you have experience with working abroad?

Personal experience with working abroad
Yes 14 28%
No 35 70%
Question 15 What kind of language courses do you prefer?

Course specialization
General foreign language 11
Foreign language for specific purposes 5
Combination of both 27
105
Question 17 Has the pandemic and the related restrictions affected the language courses in your
company?
Impact of pandemic on language courses
No changes 6 15%
Courses were suspended 23 55%
Changed form 13 30%
106
Transfers of healthcare workers due to the COVID-19 crisis

and its impacts
Zuzana Rowland1, Zuzana Mlsová1, Petr Šuleř1
1 Institute of Technology and Business in České Budějovice, School of Expertness and

Valuation
Abstract
During the coronavirus crisis, healthcare workers are exposed to a large amount of
work in high-risk workplaces in very unfavorable conditions. The aim of this seminar
paper is to find out what psychological effects the coronavirus crisis has on these
healthcare workers and also what are the reasons and procedures for moving
workers to other positions. Whether it's transfers between departments within an
organization, or transfers between organizations to other cities or regions. To achieve
the aim of the research and answer the research questions, data from the existing
questionnaires of Suryavanshi et al. (2020) and Lasalvia et al. (2020) are processed
and analyzed and our own questionnaire survey is created, which describes the
reasons and procedures for relocating workers in times of crisis. The received
questionnaires are compared and analyzed. They show that the symptoms of
moderate to severe depression and severe anxiety are most common in healthcare
professionals who are in direct contact with infected COVID-19 patients and are also
more common in women. The questionnaire itself describes that the most common
reasons for relocating workers are necessary assistance with vaccinations or with
testing, assistance in special wards for patients with COVID-19, but also due to the
lack of staff due to COVID-19 infection. Hospitals use various procedures to deal with
this crisis; these most often include transfers of workers to work from home,
recruitment of new part-time workers and contractors, bans on taking holidays for
healthcare staff and mandatory overtime, assistance from students, part-time
workers and volunteers, as well as repurposing hospital beds and reorganization of
operations.
Keywords: COVID-19, pandemic impact, employees, healthcare workers, mental

health, employee transfers
107
Introduction
At the turn of 2020, COVID-19, caused by the coronavirus SARS-CoV-2, first appeared in
Wuhan, China. The virus, which has gradually spread around the world and caused an
ongoing pandemic, has also caused huge economic problems.
Employees are a major chapter in the COVID-19 crisis. At a time when the world had to
stop, the governments of some of the most affected countries were forced to introduce a
so-called lockdown, which suspended the entire economy in the country. The industry
and all services stopped, except those that provide essential goods and services. Hospitals
were forced to postpone planned procedures and start accepting patients with a serious
course of the disease. Governments around the world have responded to the coronavirus
crisis by introducing fiscal policies to support increased healthcare spending, income
transfers, increased social benefits, and wage subsidies to firms to retain employees and
thus minimize short-term unemployment (Makin and Layton, 2021). In both developed
and developing economies, the virus has damaged the efficient functioning of companies
and their employees in the private sector, while activity and employment in the public
sector have been affected much less (Makin and Layton, 2021).
Some companies went bankrupt because they were unable to operate under these
conditions. Thus, a large number of employees lost their jobs due to the pandemic, were
forced to change their occupation or were transferred to other positions (Chanana and
Sangeeta, 2020). This applies in particular to healthcare workers, the military and
workers in the integrated rescue system. These workers are exposed to COVID-19 every
day, but they are also an indispensable part of combating the disease (Gombar et al.,
2020). What are the effects of the crisis on these employees? What does it mean to transfer
workers to other positions or retrain them?
Relocation of employees to other workplaces is most often seen in workers in medical
facilities. The isolation centers of medical facilities lack a large number of medical staff,
and so medical staff from non-intensive care are deployed in these centers. The
deployment of these health professionals requires some form of adaptation to the entirely
new environment that this work entails (Okediran et al., 2020). In the Czech Republic,
governors of regions began to call on, for example, outpatient specialists, employees of
day care facilities and inpatient care where they do not yet care for covid patients
(Ministry of Health of the Czech Republic, 2021).
The aim of this article is to find out how and to what extent workers in the most risky job
positions (health professionals, police officers, etc.) were, and still are, physically and
mentally affected during the coronavirus pandemic. In order to meet this goal, the
following research questions are defined:
1) What are the reasons and procedures for transferring employees to other
positions?
2) What are the mental or physical impacts on these workers?
108
Literature research
Healthcare workers deserve nationwide attention during the coronavirus crisis. Not only
are they constantly working under stress, but their healthcare organizations are under a
lot of pressure and many are trying to deal with providing care to many critically ill
patients at the same time (Burdorf, Porru and Rugulies, 2020). These are workers who
are in constant contact with infected patients and are therefore at the greatest risk of
infection. All of this has significant implications for the mental health of these workers
(Bell and Wade, 2021). Xue-Hui et al. (2021) analyzed information on the level of
depression, loneliness of health professionals and their knowledge related to COVID-19.
They found that workers in the isolation ward suffered from mild to moderate depression.
The degree of loneliness was higher for doctors than for workers in the isolation ward.
The study also shows that the level of awareness of healthcare professionals about the
knowledge of COVID-19 is relatively high.
According to Okediran et al. (2020), the experience of front-line healthcare professionals in
isolation centers during the coronavirus pandemic varies from the joy of healing patients to
suffering from their deaths. They concluded that there was a need to increase psychosocial
support and to provide greater material and financial support to these workers and to ensure
a safe working environment. The results of Sahebi et al. (2021) show that the overall
prevalence of anxiety and depression among health professionals during the COVID-19
pandemic is 24.94% and 24.83%, respectively. Olagunju et al. (2021) demonstrate the
influence of mental well-being on the quality of patient care and the effective functioning of
healthcare services. They interviewed 303 healthcare professionals to evaluate mental
distress and the Pittsburgh Sleep Quality Index (PSQI), to assess multidimensional aspects of
sleep, including quality, latency, duration, use of sleep medications, and daily dysfunction. The
value of mental distress was 23.4% and 6 out of 10 participants reported sleep problems. The
largest proportion of participants reported problems with sleep latency (81.5%), duration
(71.3%) and daily dysfunction (69.6%), while approximately one third (32%) reported sleep
medications and had problems with sleep quality.
According to Maltezou et al. (2020), out of 3,398 monitored nurses, 1,599 were exposed
to low-risk, 765 to medium-risk, and 1,031 to high-risk coronavirus infection. The study
also shows that hospitalization was most common in workers who were at high risk of
infection. Johnson et al. (2021) found that another important source of virus transmission
between patients and workers is the spread of asymptomatic COVID-19 among healthcare
professionals. Coronavirus tests were performed on workers from four metropolitan
hospitals, with 439 participants taking a nasopharyngeal swab and 374 participants
taking a blood sample. Using nucleic acid-based PCR (NAAT) assays, the incidence of
SARS-CoV-2 infection was 0.23% and the antibody level from blood samples was 2.41%.
In order for healthcare professionals to be able to return to work after a positive PCR test,
they must spend some time in isolation. An analysis of 150 patients and healthcare
professionals who switched from positive to negative PCR test results within 2 months
was performed at an academic medical center in the USA. They concluded that until there
109
is evidence of how long a positively tested person is infectious, the length of quarantine
should be more than one month (Gombar et al., 2020).
Petzold, Plag and Ströhle (2020) summarized the recommendations of the World Health
Organization, the United Nations and the International Society of the Red Cross to reduce
stress and psychological burden on healthcare workers during the COVID-19 pandemic
and to identify important factors that senior staff should consider to reduce the
psychological burden on their subordinates. According to them, the emphasis is on the
normalization of strong emotions and stress, the fulfillment of basic needs, social support,
clear communication and division of tasks, flexible working hours and the use of
psychosocial and psychological help.
According to Carnevale and Hatak (2020), human resource managers should be able to adapt
to unforeseen events that cause increased insecurity among their employees and pose an
immediate threat to the performance and viability of organizations. They should react quickly
and try to help their employees adapt to and cope with the radical changes in the work
environment due to the COVID-19 crisis. For example, employees who previously only
worked in their organization must now quickly adapt to remote work environments.
Human resource managers in companies are constantly developing innovative, creative
and effective ways to engage their employees in various activities in order to maintain
their mental well-being and thus increase their motivation and efficiency at work
(Chanana and Sangeeta, 2020).
Jankelová and Mišún (2021) tried to identify the effects of the competencies of crisis
managers in the field of agriculture on the performance of employees in the coronavirus
crisis, when their performance was influenced by subjective perception and evaluation of
their working conditions, satisfaction and safety. They found that the performance of
employees in a crisis can be influenced by competent crisis management and increase its
impact by sharing information and supporting teamwork.
Ren, Cao and Tachia (2020) show that job creation by employees strengthens their job
satisfaction and innovative work behavior in turn strengthens their work commitment.
The research provides evidence of how employees involved in job creation have
reoriented their careers to cope with high unemployment.
Since the outbreak of the COVID-19 pandemic, the possibility of working from home
(home office) has become a common part of many employees' lives. It was recommended
to workers as a measure to reduce the risk of infection and thus reduce the spread of the
virus. The possibility of working from home can have positive as well as negative effects
on working conditions as well as on the physical and mental health of employees (Hallman
et al., 2021). Hallman et al. (2021) set to find out what are the differences in the use of
time during one day (24 hours) between office workers and home office workers. It was
found that workers who worked from home during the COVID-19 pandemic in Sweden
slept longer than when they worked in offices. Physical activity did not change
significantly during work and leisure. These changes while working from home can be
healthy. However, some workers in this study reported that their work performance and
110
well-being changed for the worse during the pandemic. This suggests that action will be
needed to prevent possible health risks.
Methods and Data

Based on a study by Suryavanshi et al. (2020), which provides information on the mental
health and quality of life of health professionals during the COVID-19 pandemic in India,
we will analyze data from an online structured questionnaire. This questionnaire was
opened to respondents from May 5th 2020 to May 16th 2020. Respondents include health
professionals (doctors, nurses and trainees) from 30 cities in 12 states of India. The state
of Maharashtra has the highest representation. Approximately 1,000 healthcare
professionals were interviewed, of which 204 responses were received. The survey
contains data on demographic characteristics, the level of depression and anxiety, and the
quality of life of health professionals.
Data from Lasalvia et al. (2020) will be processed and analyzed for comparison. The data
is obtained from a web-based questionnaire available from April 21st to May 6th 2020.
Respondents to this questionnaire include administrative staff and medical staff working
at the University Hospital of Verona in the Veneto region of Italy. A total of 2,195
healthcare professionals participated in the survey, and the questionnaire contains
personal socio-demographic information and characteristics, including gender, age, living
conditions, existing psychological problems, and length of practice.
Data from these two articles will be processed and analyzed in MS Excel software, where
basic statistical characteristics (mean, median, variance) will be performed and graphs
will be created for comparison.
In order to obtain relevant results, which will also be valid for the Czech Republic, a research
sample will be created, which will be obtained through a questionnaire survey. From April
19th to April 26th 2021, an online structured questionnaire will be distributed, which will be
sent out via e-mail among staff in hospital organizations and the Police of the Czech Republic.
The aim of this questionnaire will be to find out the reasons and procedures for relocating
employees to other positions. The questionnaire will be in Czech language and will be created
using Google Forms. It will contain 6-12 questions of open and closed types. First, the
demographic data of the respondents will be analyzed and then information on employee
transfers and the reasons for these transfers will be collected. The output data will be
presented in MS Excel software through tables and charts.
Results
The questionnaire of Suryavanshi et al. (2020), mediated among health professionals in
India, received a total of 197 responses. Graph 1 shows the level of depression and anxiety
in all health professionals who participated in the survey. It shows that moderate to
severe depression occurred in 44 healthcare professionals (22%), moderate to severe
111
anxiety in 56 healthcare professionals (28%), and a combination of moderate to severe

depression and anxiety in 33 healthcare professionals (17%). The remaining 64 health
professionals (32%) had no levels of depression or anxiety.
Graph 3: Levels of depression and anxiety in all healthcare workers
22%
32%
28%
17%
Moderate to severe depression

Moderate to severe anxiety
Combination of moderate to severe depression and anxiety
None
Source: Suryavanshi et al. (2020), processed by authors.
The gender distribution of workers showed that out of a total of 101 women, 23 (23%) suffer
from moderate to severe depression, 32 (32%) from moderate to severe anxiety, and 17
(17%) reported a combination of moderate to severe depression and anxiety and 29 women
(29%) had no levels of depression or anxiety. The overall distribution is shown in Graph 2.
Graph 4: Levels of depression and anxiety in women
29% 23%
17% 32%

Comcination of moderate to severe depression and anxiety
None
112
A total of 96 men participated in the questionnaire survey. 21 male health professionals

(22%) suffer from moderate to severe depression, 24 (25%) from moderate to severe
anxiety, and 16 (17%) a combination of moderate to severe depression and anxiety. 35
employees (36%) do not suffer from either, see Graph No. 3.
Graph 5: Levels of depression and anxiety in men
22%
36%
25%
17%

Comcination of moderate to severe depression and anxiety
None
Graph 4, 5 and 6 show the distribution of the level of depression and anxiety according to
the age of the respondents. There were a total of 81 workers under the age of 30. Four
healthcare workers suffer from moderate to severe depression (30%), 26 from moderate
to severe anxiety (32%), 18 (22%) and 13 (16%) did not report any depression or anxiety.
Graph 6: Levels of depression and anxiety in healthcare professionals under 30 years of age
16%
30%
22%
32%

None
113
There were 73 workers aged 31-39 years. 14 of them (19%) stated that they suffer from
moderate to severe depression, 20 workers (27%) reported that they suffer from moderate
to severe anxiety, 10 respondents (14%) reported a combination of moderate to severe
depression and anxiety 29 respondents (40%) did not report any depression or anxiety.
Graph 7: Levels of depression and anxiety in healthcare workers between 31-39 years of age
19%
40%
27%
14%

None
Among healthcare professional over the age of 40, a total of 43.6 (14%) reported having
moderate to severe depression, 10 health professional (23%) reported moderate to
severe anxiety, a combination of moderate to severe depression and anxiety was reported
by 5 healthcare professional (12%) and 22 healthcare professional (51%) reported no
depression or anxiety.
Graph 8: Levels of depression and anxiety in healthcare professionals over 40 years of age
14%
23%
51%
12%

None
114
Suryavanshi et al. also processed staff responses, depending on whether or not they were in
direct contact with infected COVID-19 patients. Of the 197 workers, 171 were in direct
contact with infected patients. Mild to severe depression affects 41 of them (24%), moderate
to severe anxiety affects 50 (29%), a combination of moderate to severe depression and
anxiety affects 30 workers (18%) and 50 (29%) did not report either, see Graph 7.
Graph 9: Levels of depression and anxiety in healthcare professionals working in direct

contact with infected COVID-19 patients
29% 24%
18% 29%

None
The remaining 26 staff members were not in direct contact with infected patients. Graph
8 shows that 3 workers (12%) reported having moderate to severe depression, 6 workers
(23%) with moderate to severe anxiety, 3 workers (12%) with a combination of moderate
to severe depression and anxiety and 14 employees (54%) did not report either.
Graph 10: Depression and anxiety levels in healthcare professionals not working in direct
contact with infected patients COVID-19
12%
23%
54%
12%

None
115
A total of 2,195 respondents participated in the questionnaire survey by Lasalvia et al.

(2020). 35.70% participated were nurses, 24.30% were other healthcare professionals,
16.40% were interns, 13.90% were doctors and 9.70% were administrative staff. Graph
9 shows a clear representation of this division of staff in a hospital in north-eastern Italy.
Graph 11: Distribution of staff in a hospital in north-eastern Italy
9,70%
13,90% 35,70%
16,40%
24,30%
Nurses Other healthcare workers Residents Doctors Administrative workers
Source: Lasalvia et al. (2020), processed by authors.
Of the total number of participating employees, as shown in Graph 10, 9% worked in the
ICU, 8% worked in COVID-19 sub-intensive units, 7.60% in other front-line services and
the remaining 75.4% worked in different hospital ward without contact with COVID-19
patients.
Graph 12: Distribution of work positions of respondents
9%
8%
7,60%
75,40%
Working at ICU
Working at sub-intensive COVID-19 units
Other front-line services
Other hospital wards without contact with COVID-19 patients
Source: Lasalvia et al. (2020), processed by authors.
116
The questionnaire survey also shows that out of 2195 respondents, 63.20% stated that
they suffer from traumatic experiences associated with COVID-19 at work. 53.80%
showed signs of post-traumatic anxiety and in addition 50.1% showed signs of clinically
relevant anxiety and 26.60% showed signs of at least mild depression. This research also
showed that women, i.e. nurses and other assistants directly associated with patients with
COVID-19 and persons with pre-existing psychological problems were at increased risk
of psychopathological consequences of the COVID-19 pandemic.
To answer the research questions, a questionnaire was created to find out the reasons
and procedures for moving employees to other positions. Of the 30 hospitals randomly
contacted in the Czech Republic, 8 responded. Graph 11 shows the distribution of
respondents according to their scope within regions of the Czech Republic.
Graph 13: Regional scope of hospitals.

Vysočina Region Zlín Region Capital City of
11% 0% Prague
Ústí nad Labem 11% South Bohemian
Region Region
11% 11%
Central Bohemian
Region
11% South Moravian
Region
11%
Karlovy Vary Region

Pilsen Region
11%
0%
Hradec Kralove
Pardubice Region Region
Moravian Silesian 0%
0%
Region
Olomouc Region Liberec Region 0%
23% 0%
Capital City of Prague South Bohemian Region South Moravian Region
Karlovy Vary Region Hradec Kralove Region Liberec Region
Moravian Silesian Region Olomouc Region Pardubice Region
Pilsen Region Central Bohemian Region Ústí nad Labem Region
Vysočina Region Zlín Region
Source: Authors.
The number of employees at these hospitals ranged from 414 to 5,689. Detailed numbers
of employees are shown in Graph 12.
117
Graph 14: Number of hospital employees

6000 5689
Number of employees 5000
4000
3000
3000
2317
2000
1400
1100 1100
1000 800
414
0
1 2 3 4 5 6 7 8
Hospital
Source: Authors.
When asked whether hospitals had to deal with staff transfers due to the COVID-19 pandemic,
100% of respondents said yes. Graph 13 shows which transfers were involved.
Graph 15: Employee transfers

9
8
8
7
Number of responses
6
6
5
4
3
2
1
1
0
Transfers between Transfers between Transfer of employees to work
departments within an organizations (e.g. to another from home
organization city or region)
Transfer type
Source: Authors.
If the hospital had to deal with transfers of staff between organizations (e.g. to another
city or region), respondents were asked to indicate the procedures and reasons for the
transfer. These relocations concerned only one hospital, which stated that its staff had to
provide vaccinations in another city and were also forced to use another building for one
ward for a short period of time.
118
Another question was whether the hospitals were facing a shortage of staff. Of the total
number of responses, 7 hospitals (87.5%) answered yes and 1 hospital (12.5%) answered
no.
Several answers were received to the open-ended question concerning the main reasons
for the redeployment of staff. The most common reasons for relocating employees were:
• assistance in hospital wards with COVID-19 patients,
• assistance with vaccinations or testing,
• rotation of workers in groups due to restrictions or infection,
• reduction or reorganization of operations,
• quarantined staff, closure of some departments,
• establishment of COVID-19 workplaces and staff shortages in these departments.
The last question of this questionnaire survey was how hospitals dealt with staff
shortages during the COVID-19 pandemic. Hospitals have addressed this problem by
mandatory overtime, by banning taking holidays for medical staff, assistance from
students, part-time workers and volunteers, or transfers between departments. Detailed
processing of answers is presented in Graph 14.
Graph 16: Ways of solving staff shortage problems
3
3
Number of responses
2
2
1 1 1
1
0
Assistance from Employee Reprofiization of Transfers between Recruitment of
students, part- overtime, ban on beds, teaming, departments, professionals from
time workers and taking holidays for reorganization of contracting new spa treatment
volunteers healthcare operations personnel for facilities and MD
workers part/full-time
work
Source: Authors.
Discussion
To answer the research question as to what are the mental or physical impacts on workers in
the most risky workplaces, two questionnaires were compared, which related to this issue.
The questionnaire of Suryavanshi et al. (2020) examined the impacts on health professionals
in India and the questionnaire of Lasalvia et al. (2020) examined how the COVID-19 pandemic
affected healthcare and administrative workers in north-eastern Italy.
119
Suryavanshi et al. (2020) concluded that most of the symptoms of moderate to severe
depression or moderate to severe anxiety were reported by workers under the age of 30,
but also workers who worked in direct contact with infected patients with COVID-19. A
total of 197 respondents took part in this questionnaire survey. Among these
respondents, nurses were the most represented - 35.70% followed by other healthcare
professionals - 24.30%. Physicians participated in this survey by only 13.90%. It also
follows that women suffered the most severe anxiety - 32%, in men it was only 25%.
Furthermore, with a slightly smaller difference than in the case of anxiety, women
suffered more from moderate to severe depression, namely 23%, in men it was 22%.
In contrast, the results of the questionnaire survey by Lasalvia et al. (2020), which was
answered by 2,195 respondents, show that fewer healthcare professionals showed
symptoms of at least mild depression. Most workers, exactly 63.20%, answered that they
suffered from traumatic experiences associated with COVID-19 at work. At the same time,
53.80% stated that they suffered from post-traumatic anxiety. Also, over 70% of workers
reported showing symptoms of clinically relevant anxiety and symptoms of at least mild
depression. Lasalvia et al. (2020), as well as Suryavanshi et al. (2020) concluded that
women are at increased risk of psychopathological consequences of the COVID-19
pandemic.
To answer the research question, as to what are the reasons and procedures for moving
employees to other positions, a questionnaire survey was conducted. 30 randomly
selected hospitals from all over the Czech Republic were interviewed and a total of 8
answers were obtained. The number of hospital staff who responded to this questionnaire
survey ranged from 414 to 5,689.
All respondents stated that they had to deal with staff transfers. For all hospitals, these
were transfers between departments within the organization. Six hospitals stated that
they were moving workers to work from home and only one hospital stated that they had
to move workers between organizations, to other cities or regions. The main reasons for
these transfers for most respondents were help in wards with COVID-19 patients and help
with vaccinations or testing. Another reason was the rotation of workers in groups to
reduce possible infection, reduction or reorganization of operations, due to quarantined
staff and closed departments or due to the establishment of COVID-19 wards and the lack
of staff in these departments.
Conclusion
The aim of this article was to analyze the effects of the coronavirus crisis on healthcare professionals
and to identify procedures and reasons for relocating employees to other positions.
The aim of the paper was met. The results section analyzes data that show that health
professionals who work in direct contact with patients with COVID-19 in most cases show
symptoms of moderate to severe depression or severe anxiety to a relatively large extent.
Furthermore, the main reasons for moving employees to other positions were identified
using a questionnaire survey. Whether it was a transfer within one organization, i.e.
120
between departments or other organizations in other cities or counties, in all cases these
reasons were associated with COVID-19.
Complications during the research arose in the own questionnaire survey, when the
questionnaire was sent to a small number of respondents. Of the 30 hospitals sent, only 8
responses were obtained. This is a small sample of responses, but it was sufficient enough
to analyze the main reasons for the employee transfers.
The issue of COVID-19 has great potential for further research. It would be very
interesting to conduct research analyzing whether individual hospitals returned to their
usual regimen before the coronavirus crisis or how healthcare professionals dealt with
this crisis and its effects on their mental and physical health.
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Ing. Zuzana Rowland, MBA, PhD., School of Expertness and Valuation, Institute of
Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice,
Zuzana Mlsová, bachelor student, School of Expertness and Valuation, Institute of
Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice,
Mgr. Petr Šuleř, PhD., School of Expertness and Valuation, Institute of Technology and
Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic,
[email protected]
122
The development of the financial health within the fishing

industry in the South Bohemian region
Nikola Sagapova1, Josef Gulyás2
1 Institute of Technology and Business in České Budějovice, Faculty of Corporate

Strategy, Department of Tourism and Marketing
2 Institute of Technology and Business in České Budějovice
Abstract
Ponds and the entire fishpond system are considered important cultural assets and
heritage which people have benefitted from until now. They are being used for the
commercial breeding of waterfowl and fish, however they are also important from the
perspective of water management, recreation, aesthetics, or ecology. This paper aims
to evaluate the development of the financial health of the fishing industry in the South
Bohemian Region in the period 2003-2019. For the analysis, data from the Bisnode
Magnusweb were used. According to the classification of economic activities CZ-
NACE, it is sector “A – agriculture, forestry, and fishing, more specifically, subgroup
030000 (Fishing and aquaculture). The analysis includes only companies in the South
Bohemian Region due to their highest concentration in this area. Based on the
financial statements of the companies operating in the sector of fishing and protection
of waters, an average sample company was determined. Subsequently, financial
analysis of the whole industry is carried out using the average data. The results
indicate that although this industry showed clear reactions to external and internal
economic influences during the monitored period, from the economic perspective, the
industry has been stabilized very well since the last economic crisis.
Keywords: financial analysis, South Bohemian Region, comprehensive evaluation,

ratios, fishery, ponds, landscape
Introduction
Ponds are a common type of freshwater habitat in Europe, and they are not only being
inseparable features of the landscape, but they also have several of productive functions
including fish farming or waterfowl breeding, and non-productive functions that affect
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not only the landscape, micro-climatic conditions, retention function, but play also an
important role on flood protection, biodiversity, culture, society, education, and aesthetics
(De Bie et al., 2007; Turkowski and Lirski, 2011). Ponds can be situated in lowlands,
highlands, or at high altitudes; they can be located in fields, meadows, forests, or built-up
areas such as in villages and towns (Chytrý et al., 2010; Kumar et al., 2012).
Most of the fish ponds have been a part of the landscape of the Czech Republic for several
hundred years, and therefore play an important role in the hydrological system for ages
(Pechar, 2000). Mesolitic fishermen were the first fisherman in Czech lands who
concentrated their activities mainly near rivers. The first written record about pond and
fishing date back to 1034 (Andreska, 1997). The first ponds in Czech lands were not
dedicated to the fish farming. Their aim was to help the medieval miners to mine and float
various non-ferrous ores, or to serve as water reservoir and provide drinking water for
humans and cattle. The first ponds used for fish farming were established near these
reservoirs mostly by monks from monasteries, and fish became a part of traditional dish
of peasants but also feudals (Hule, 2009). Many fish were consumed by monasteries and
other church institutions as fasting meal, but also by Jewish inhabitants for the Friday
night Shabbat dinner (Andreska, 1997). Fish pond farming and aquaculture is a significant
part of the primary sector of the South Bohemian Region with a long tradition, creating a
typical landscape pattern of the region, moreover is responsible for more than half of the
total fish production of the Czech Republic (Polanecký et al., 2018; Bednářová, 2005). The
South Bohemian Region has long been perceived as an agricultural area with developed
pond farming and forestry. The region is a part of the river basin of the upper and central
Vltava with its tributaries – the Malše, the Lužnice, the Otava, and many others. In the past,
more than 7,000 ponds were created, with the overall area achieving 30,000 ha today. The
biggest ponds both in the region and in the Czech Republic, are Rožmberk, Horusický
rybník, and Bezdrev. In addition to the fish production itself, the share of waterfowl
breeding, mainly ducks and geese, is also significant (Český statistický úřad, 2020).
In addition to fish production, ponds in South Bohemia are of considerable importance as
landscaping elements retaining water in the landscape and significantly contributing to
the biodiversity of the territory. Riparian vegetation has significant benefits in terms of
landscape-scale conservation of avifauna, as it provides possibilities for nesting for many
species of birds even in highly modified environments, but no management in a form of
rational mowing and pasture may become a threat (Hanzelka, 2010; Bennett, Nimmo and
Radford, 2014). Specific vegetation can be found for instance in sandy areas with dunes
that occur along the Lužnice river in southern Bohemia, or deep river valleys such as in
the Vltava valley, or even in fishponds, but also in lowland taiga which occurs in
Třeboňská basin (Chytrý, 2012). In this respect, many ponds located in the South
Bohemian region are of great conservation importance even on an international and
global level, which is confirmed also by the general delimitation of so-called bird areas
specified in NATURA 2000 or by the localities included in the Ramsar Convention on
Wetlands (Kušová, Těšitel and Bartoš, 2005; Chytil and Hakrová, 2001). Ponds and pond
systems are also considered an important cultural heritage and part of local history
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contributing to regional identity and its typical landscape. The region benefits from ponds
and pond systems to this day not only in terms of the possibility of commercial fish or
waterfowl farming but also concerning water management, ecological functions, tourism,
recreation, as well as for its aesthetic or artistic values. In connection with the production
function, there exists a wide range of events for the public such as ceremonial fish harvests
with the possibility to taste fish specialties or to buy a live fish. Třeboň fishpond heritage
was nominated for inclusion in UNESCO´s World Heritage List (Heřmanová, 2012).
The importance of this industry is indisputable. Another very important aspect is the
financial situation of the fishing industry. Like other types of companies, enterprises
active in the fishing industry are living entities, which need to deal with finance. It is very
important to be aware of the situation of the given industry, or the situation of its
competitors. This paper aims to present a way to properly express the financial health of
the given industry, or apply this method in the case of specific companies. The objective
of the paper is thus to evaluate the development of the financial health of the fishing
industry in the South Bohemian region between 2003 and 2019.
Methods and Data

The data used for the analysis will be obtained from Bisnode´s Magnusweb database.
According to the classification of economic activities CZ-NACE, it is the sector “A –
agriculture, forestry, and fishing”. More specifically, it is the subgroup 030000 (Fishing
and aquaculture). The analysis includes only the companies from the South Bohemian
region, as there is the highest concentration of companies active in this field.
The monitored period is defined by the time series of seventeen consecutive years. It is a
period between the years 2003 and 2019. Older data were not available by means of the
database used. For each year, a specific sample of companies was selected as shown in
Table 1 and 2.
Tab. 1: Number of companies for given period (2003-2011)
2003 2004 2005 2006 2007 2008 2009 2010 2011
Companies no. 7 7 8 7 7 9 10 13 14
Source: Authors.
Tab. 2: Number of companies for given period (2012-2019)
2012 2013 2014 2015 2016 2017 2018 2019
Companies no. 13 12 11 10 13 15 13 8
Source: Authors.
In terms of the sample companies for individual years, there shall be mentioned a fact
concerning the selection. For all years, the samples consist of limited liability companies
and two joint-stock companies only. However, the database does not contain data on the
volume of the shares issued, dividends paid, or price of shares. In 2011 and 2017, the
125
maximum number of companies from the database was 14 and 15, which is twice the
number of companies from the years 2003-2007.
Moreover, to provide information about the financial situation of the entire industry, it is
necessary to determine an average sample company, which will be created on the basis of
averaging all data of eligible companies for each year. Based on the resulting data, a
balance sheet and profit and loss account will be created for each year, which will be used
for financial analysis. Within the methods of comprehensive evaluation, creditworthy and
bankruptcy models are being used.
Profitability ratios: ROA (Return On Assets) – Earnings before interest and taxes/Assets,
ROS 1 (Return On Sales) – Earnings before interest and taxes/Sales, ROCE (Return On
Capital Employed) – (Earnings before interest and taxes)/Equity + Capital employed),
ROE (Return On Assets) – Net earnings/Equity.
Activity ratios: Receivables turnover – Sales/Receivables, Stock turnover – Sales/Stock,
Receivables turnover period – Receivables/(Sales/360), Stock turnover period –
Stock/(Sales / 360), Average collection period – Receivables/(Sales/360), Creditors
payment period – Payables/(Sales/360),
Debt ratios: Equity Ratio – Equity/Assets, Debt Ratio I. – Debt/Assets, Debt Ratio II. –
(Debt + Other liabilities)/Assets, Debt Equity Ratio – Debt/Equity, Interest coverage I. –
Earnings before interest and taxes/Interests, Interest coverage II. – (Earnings before
interest and taxes + Depreciation)/Interests.
Liquidity ratios: Net Working Capital – (Current assets – Payables), Total liquidity –
Current assets/Payables, Current ratio – (Payables + Financial assets)/Payables, Cash
ratio – Financial assets/Payables, Creditors payment period – Payables/(Sales/360).
Bankruptcy and creditworthy models: Altman Z-Score for companies non-traded on
financial markets and modifications for Czech companies, Indexes of Mr and Mrs
Neumaier (IN 95, IN 99, IN 01, IN 05), Taffler model, Kralicek Quick Test (original and
modified), Solvency index.
An average sample company is determined by the arithmetical average of companies
active in fishery and water protection. First, the balance sheet and profit and loss account
will be used to analyse absolute ratios. Subsequently, ratio analysis of selected ratios will
be performed. The values are presented in thousand CZK.
Results
The analysis of the data clearly shows that the value of the total assets of an average
sample company in the monitored period fluctuated significantly. The largest volume of
assets was in 2019 (CZK 116,453). The smallest volume was in 2008 (CZK 57,029). The
fluctuation was largely caused by the ratio of fixed tangible assets to stock. The
development of the total assets is presented also in Graph 1.
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Graph 1: Development of the volume of the total assets (in thousand CZK)
140 000
120 000
100 000
Thousand CZK
80 000
60 000
40 000
20 000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year
Source: Authors.
The total assets volume of the average sample company active in fishery and water
protection showed an unusual increase in 2006 compared to other years. Another
significant fluctuation in the form of a decrease in the volume of the total assets was
between 2015 and 2016; afterward, it started to increase sharply up to the highest value
recorded during the monitored period. The average sample company active in fishery and
water protection is interesting also in terms of the structure of the total assets. The
structure is shown in Graph 2.
Graph 2: Structure of total assets (in thousand CZK)

140 000
120 000
Thousand CZK
100 000
80 000
60 000
40 000
20 000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Other Assets 195 219 158 153 315 338 206 198 320 354 458 235 216 209 197 240 482
Current Assets 41 858 40 202 36 774 63 392 35 568 30 819 41 941 88 698 38 396 34 398 40 270 44 621 50 830 32 722 41 402 47 838 59 738
Fixed Assets 42 650 45 232 41 377 48 871 31 762 25 873 39 536 29 646 28 905 31 486 36 111 41 227 45 753 24 101 32 094 40 336 56 233
Year
Fixed Assets Current Assets Other Assets
Source: Authors.
Graph 2 clearly shows that the total assets in every year consist only of a negligible part
of other assets. In most of the monitored years, it is evident that half of the total assets
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consist of current assets and fixed assets of the company. The only exception is the year
2010 when the current assets account for 74.95 % (CZK 8,869) of the total assets.
Subsequently, the structure of the liabilities of the average sample company active in
fishery and water protection can be analysed. Graph 3 shows a simplified version of the
liabilities of the average sample company. The values are presented in thousand CZK. The
analysis of the data shows that the volume of equity during the monitored years increased
slowly. The highest value was recorded in the year 2015 (CZK 73,868), but also in the year
2019 (CZK 91,566) which is not represented in the graphical presentation. On the
contrary, the volume of the borrowed capital have decreased over the years. The highest
volume of the borrowed capital was in the year 2003 (CZK 40,870), while the lowest
volume was in the year 2016 (CZK 12,536). In terms of the structure of the liabilities of
the average sample company active in fishery and water protection, it is evident that from
2008, the share of the borrowed capital on the total volume of liabilities decreased
significantly. The borrowed capital formed the largest share of the liabilities in 2006 (CZK
5,240). In terms of the borrowed capital to equity ratio, it was in 2003 (48.3 %). However,
the overall development trend of the total liabilities increased continuously. A more
detailed view of the liabilities structure of the average sample company active in fishery
and water protection in the period 2003-2017 is presented in Graph 3.
Graph 3: Structure of total liabilities (in thousand CZK)

120 000
100 000
Thousand CZK
80 000
60 000
40 000
20 000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Other Liabilities 143 172 127 290 143 80 92 139 192 913 240 288 267 282 267
Borrowed Capital 40 870 39 262 31 728 52 406 32 307 22 631 25 050 24 247 21 914 15 788 18 706 20 559 22 665 12 536 16 074
Equity 43 690 46 217 46 453 59 720 35 195 34 318 56 552 44 771 45 514 49 536 57 892 65 236 73 868 44 215 57 352
Year
Equity Borrowed Capital Other Liabilities
Source: Authors.
An interesting fact is the development of the profit and loss account of the average sample
company active in fishery and water protection. The most important items in the profit
and loss account for each kind of company are operating results, financial results, and
extraordinary profit/loss. The items are presented in detail in Graph 4.
128
Graph 4: Operating result, financial result, and extraordinary profit/loss

30 000
25 000
20 000
15 000
Thousand CZK
10 000
5 000
-5 000
-10 000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Extraordinary Profit/Loss 3 191 0 380 8 464 73 91 18 46 -10 143 107 -16
Financial Result -4 098 -315 -371 -1 094 -234 -85 -689 -313 -159 -218 86 47 -47 3 172 38 360
Operating Result -211 3 883 5 149 25 509 8 151 6 029 6 061 4 014 5 302 4 114 6 023 6 816 6 880 3 758 4 969 5 465 5 854
Year
Operating Result Financial Result Extraordinary Profit/Loss
Source: Authors.
Graph 4 indicates that in 2006, the average sample company active in fishery and water
protection showed extremely high operating results. Compared to this, the operating
result in other monitored years was approximately the same, with a noticeable regular
cyclicality. In 2003, the company showed very negative financial results, and this trend
continued until 2012. The financial result was positive from the year 2013. Extraordinary
profit/loss was recorded in terms of the volume only in the year 2003; from the following
year, the value of this item in the profit and loss account was negligible.
In terms of the profitability of the average sample company active in fishery and water
protection, the most important profitability ratios are ROA, ROE, ROS 1, and ROCE. Graph
5 shows the development of all these ratios.
Graph 5: Development of profitability ratios (ROA, ROE, ROS 1, and ROCE)

35,00%
30,00%
25,00%
Profitability
20,00%
15,00%
10,00%
5,00%
0,00%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year
ROA ROCE ROE ROS 1
Source: Authors
129
It follows from Graph 5 that the ROE of the average sample company active in fishery and
water protection showed major changes in the monitored period. In 2004, an extreme
value of this ratio was recorded (33.1 %), which subsequently decreased gradually.
However, from 2015, it was not possible to determine this ratio due to the absence of the
data. ROA, ROS 1, and ROCE showed a similar development trend for the whole monitored
period. The values were very low for most of the monitored period (ROA ~ 0.5 %; ROS 1
~ 0.6 %; ROCE ~ 0.6 %). In 2015, the values of these ratios increased to 7.21 % (ROA),
15.12 % (ROS 1), and 8.59 % (ROCE).
In terms of activity ratios of the average sample company active in fishery and water
protection, the receivables turnover periods were very long. For all monitored years, the
period was longer than one year. In the years 2003-2019, the receivables turnover period
was extended every year, the longest one being in 2015 (755 days). In this year, assets
turnover was only 0.48. After 2015, there was only a slight decrease (by several days).
The shortest receivables turnover period was in 2006 (344 days). Assets turnover in this
year achieved the maximum value (1.04). The stock turnover period of the average
sample company active in fishery and water protection in the monitored period was
between 76 and 188 days, where the periods changed for every year. Stock turnover
achieved the values of 4.71-1.90. The average collection period of the average sample
company active in fishery and water protection in the monitored period was 75-117 days.
At the end of the monitored period, this period was rather shorter, i.e. closed to the lower
limit of the aforementioned interval. The shortest creditors payment period of the average
sample company active in fishery and water protection was in 2004 (59 days). From this
year until the end of the monitored period, the period extended continuously to 97 days
in the year 2019. The most interesting debt ratios include the Equity ratio, Debt ratio I.,
and Debt ratio II. The graphical representation of their development is shown in Graph 6.
Graph 6: Development of debt ratios (Equity ratio, Debt ratio I, and Debt ratio II)
% 90,00%
80,00%
70,00%
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year
Debt Ratio I Debt Ratio II Equity Ratio
Source: Authors.
130
Graph 6 shows that the values of both analysed debt indicators are very similar, with the
same decreasing trend during the whole monitored period. Equity ratio shows an
opposite trend in comparison with Debt ratio I. and Debt ratio II. Interest coverage I.,
however, cannot be determined for most year of the monitored period due to the absence
of necessary data. It can be determined only for the years 2012-2015, where the highest
rate of interest coverage I. was recorded in 2015 (76.42). Interest coverage II. was very
low at the beginning of the monitored period, about 6.0. From the year 2007, however,
the value increased gradually, reaching its maximum in the year 2015 (106.52). Another
ratio characterizing the financial health of a company is liquidity ratio. In a company,
liquidity can be divided into total, current, and cash. The development trend of all types
of liquidity is presented in Graph 7.
Graph 7: Development of liquidity ratios (total liquidity, current liquidity, and cash ratio)
7,00
6,00
5,00
Liquidity
4,00
3,00
2,00
1,00
0,00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year
Total Liquidity Current Liquidity Cash Ratio
Source: Authors
According to Graph 7, cash and current liquidity showed a similar development trend for the
whole monitored period, with the same decrease after 2016. Due to the absence of the input
data, however, it was not possible to determine the cash ratio after 2016. On the contrary,
total liquidity showed an upward trend with two fluctuations in 2010 and 2016, reaching 6.4
% (in 2010) and 5.26 % (in 2016). Another interesting parameter is net working capital.
Based on the analysis of this item, it can be stated that the volume of net working capital of
the average sample company active in fishery and water protection showed an upward trend,
with the volume achieving CZK 37,613 at the end of the monitored period. In 2010, the
volume of net working capital was CZK 73,916. On the contrary, the lowest volume of net
working capital was in the year 2008 (CZK 16,201). The creditors payment period did not
exceed 100 days, with the longest creditors payment period being 98 days in the year 2010,
while the shortest creditors payment period was recorded 2016 (56 days).
From the methods of comprehensive business evaluation, the following methods were
selected for the financial analysis of the average sample company active in fishery and water
protection in the years 2003-2019: Altman Z-Score, IN (IN 95, IN 99, IN 01, IN 05), Taffler
131
model, Kralicek Quick Test, and Solvency index. Altman Z-Score showed that the average
sample company active in fishery and water protection in terms of the results for companies
non-traded on financial markets decline for most of the monitored period. In the years 2006-
2007 and 2015-2016, the company was in the grey zone. According to Altman Z-Score
modified for companies operating in the Czech Republic, the development in the monitored
period is identical. Other indicators of financial health are IN indexes. According to the results
of IN 95, the company was in the grey zone for most of the monitored period. In the years
2014-2015, the company appeared to be able to survive possible financial distress. According
to the index IN 99, the company was going to go bankrupt in the years 2003-2005 and 2007-
2019. However, in 2006, the company was in the grey zone. The index IN 01 indicates that in
2003, the company was going to go bankrupt; nevertheless, from 2004 to 2013, the company
was in the grey zone. In the years 2014-2015, the company appeared to be able to survive
possible financial distress. From the year 2016 until the end of the monitored period, the
company was again in the grey zone. IN 05 evaluates the company as a bankrupting company
in the period of 2003-2009. However, from the year 2010, the company was in the grey zone,
except for the year 2011, when it was considered rather a bankrupting company. Taffler
model is very specific for the calculation structure. According to Taffler model, the average
sample company active in fishery and water protection was not going to go bankrupt for the
entire monitored period. According to the original version of Kralicek Quick Test, the average
sample company active in fishery and water protection was considered an unhealthy
company in the year 2003. However, in the years 2004-2014, the company was considered
average. In 2015, its reputation declined and could be considered a financially unhealthy
company again. In the following years, however, it was again evaluated as an average
company. On the other hand, according to the modified version of Kralicek Quick Test from
the year 1999, the average sample company active in fishery and water protection in the
years 2003-2019 was considered a bankrupting company. In the years 2006 and 2013,
however, it showed the parameters of a creditworthy company. The last financial and
analytical indicator is the solvency index. According to its results, the average sample
company active in fishery and water protection is a company with certain financial problems
at the beginning of the monitored period. From the year 2005 to the end of the monitored
period, however, its solvency is considered to be good, in the year 2006 even very good.
Discussion
All industries usually go through cyclical repeated fluctuations in terms of their financial
ratios. An average sample company is thus a suitable tool for presenting the financial
health of a specific industry. During the monitored period, there were individual repeated
phases caused by both external and internal economic factors. One of the most important
external economic factors is the global economic crisis, which hit the Czech Republic in
2008. A positive fact is that companies active in fishery and water protection were able to
maintain the downward trend in terms of their indebtedness despite the unfavorable
conditions. This was possible also thanks to the gradual increasing of the total liquidity
even after the crisis. In terms of the financial result, it is obvious that the results were
132
negative for most of the monitored period; this can, however, be considered normal in
this industry, since these companies do not improve their financial result by means of the
operations with shares and other financial derivatives. What is more essential for these
companies is the operating result achieved mainly by selling the products (fish, fishing
tackle, etc.). Compared to other years, the operating result was stable even during the
crisis, which means that this industry was able to cope with the financial crisis very well.
It is also apparent that since this crisis, companies active in this industry have become
interested in reducing the ratio of borrowed capital to equity. This step was supposed to
lead to the optimization of the financial leverage function. Within the monitored period,
the year 2006 can be considered very interesting, as companies in this industry showed
larger volumes of the total assets, liabilities, and economic results. On the other hand, this
had another effect in the form of higher indebtedness, which had shown a downward
trend until then. Nevertheless, the companies were able to reduce their debt constantly.
This was possible also thanks to the slight growth rate of liquidity after the year 2006.
Another interesting year is 2010 when ROE showed more significant growth.
Conclusion
The objective of this paper was to evaluate the development of the financial health of the
fishing industry in the South Bohemian region for the years 2003-2019. The objective of
the paper project was achieved. Onthe basis of the financial statements of companies
active in fishery and water protection, an average sample company was determined.
Based on the average data, a financial analysis of the entire industry was performed.
Although this industry showed clear responses to external and internal economic factors
during the monitored period, it can be stated that from the economic point of view, this
industry has stabilized very well since the last economic crisis.
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Ing. et Ing. Nikola Sagapova, Department of Tourism and Marketing, Faculty of Corporate
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370 10, Czech Republic, e-mail: [email protected]
Bc. Josef Gulyás, Institute of Technology and Business in České Budějovice, Czech
134
Leadership Vacuum: Why are there Less Leaders with

Disabilities in India?
Ambuj Sharma1, Siddharth Shimpi1, Reena Malik2, Nitu Chouhan1
1Symbiosis Skills and Professional University

2Chitkara University
Abstract
Around the globe, people with disabilities regularly face discrimination and range of
disabling barriers to education, health care, employment and other public facilities.
Stigmatized attitudes, societal prejudices and negatives stereotypes about individuals
with disabilities has profound influence on the integration of such marginalized group
into the society. People with disabilities are often underrepresented in leadership
positions. Generally, it inspires and empowers people to see faces that look like them
in leadership positions. It provides a feeling of being accepted and hope that they too
could one day accomplish success like their role model.
In India, people with disabilities have received little attention in leadership positions
in different platforms of our society. Since there is very little research conducted
concerning the topics of leadership and people with disabilities in Indian context, this
provides ample opportunity to investigate, hence may be the best starting point for
conducting research in this social realm.
After reviewing the literature, many multi-dimensional observations were reported. This
article focuses on the core themes of disability and leadership qualities. Additionally,
explores challenges faced by individuals with disabilities from taking space in society as
leaders which has been lacking in generations for a long time. This research leads to a
better understanding of the complexities of cultural, socioeconomic, and professional
barriers that people with disabilities encounter when navigating life and practicing
leadership.
This article will offer qualitative information, cases, and suggestions for public
organizations, Non-Governmental Organizations (NGOs), social workers, policy
makers, academicians, researchers and above all, people in context. It is the belief that
this notion of mindset change will become even more advantageous in the years
ahead.
Keywords: People with disabilities, leader, inclusion, religion, stereotypes.
135
Introduction
One billion people, or 15% of the world’s population, experience some form of disability,
and disability prevalence is higher for developing countries (The World Bank, 2020). As
per Census 2011, in India, out of the 1.2 billion population, about 26.8 million individuals
are reported to have some kind of disability which is 2.21% of the entire population
(MOSPI, 2017). Still, the fact is that people with disabilities are unable to make adequate
representation in various positions in the community. By 2050 there will be 9 billion
people to feed, clothe, transport, employ and educate in this world economy that helps
everyone succeed and prosper while working together (Abelow, 2018). As the age profile
of bodily limitations does not change over time, more people with disabilities are likely
make their presence felt in coming decades.
India signed, and subsequently ratified, the United Nations Convention on the Rights of
Persons with Disabilities (UNCRPD) on October 1, 2007. According to the UNCRPD,
disability arises from the interaction of impairments with attitudinal and environmental
barriers that inhibit complete and active participation on an equal basis in society (Math
et al., 2019). Article 5 – Equality and non-discrimination of Convention on the Rights of
Persons with Disabilities (UNCRPD) of 2006 lays down broad mandates to ensure equality
for people with disabilities and to remove all types of discrimination on the grounds of
disability (Cera, 2017).
In today’s scenario, there is an important question being asked: why some people with
disabilities do not emerge as leaders, especially in developing countries? There are
various factors that play a role when it comes to absence of people with disabilities in
leadership position in the society. There can be many underlying reasons that have more
to do with social categorization of World’s largest minority than with the people with
disabilities themselves. Persons with disabilities are more likely to experience adverse
socioeconomic outcomes such as less education, poorer health aftermath, lower levels of
employment, and higher poverty rates (The World Bank, 2020). Barling and Weatherhead
(2016) hypothesized in their study that exposure to poverty would limit later leadership
role occupancy through the indirect effects of the quality of schooling and personal
mastery.
Leadership is a motivational instrument for people from marginalized group when the
society is diverse and reflected of what the world looks like. People with disabilities in
governance or any other corporate position inspire the people to push themselves on self-
imposed mission to elevate the professional and personal thrive to succeed in life. This
study of literature on diverse phenomena helps to explain that leadership needed not only
by certain individuals to succeed, but also by people from underprivileged backgrounds
to continue to advance and flourish.
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For all research disciplines and all research projects, consideration of prior, applicable
literature is important. The author starts by explaining previous studies to map and
analyze the research area while reading an essay, independent of discipline, to inspire the
study's purpose and explain the research question and hypotheses (Snyder, 2019). This
article is based on Kadi’s (2018) Doctor of Education thesis, which was designed to show
the benefits the community and individuals are going to get when people with disabilities
take their rights and place in the society. In order to address the value of giving people
equal opportunities to become their own leaders without judgment or attitude, Kadi’s
study focuses on the leadership perspective. Authors feel that this study is appropriate
for Indian subcontinent as people with disabilities are unable to make their mark on the
world as leaders, and society has unofficially labeled them with negative terms such as
the retarded, the deaf, and the disabled. How do these challenges create barriers for
people with disabilities to advocate their democratic rights, and demonstrate their
leadership traits? Building a culture that is sensitive to the needs and rights of people with
disabilities and advocates collectively at the political level to strengthen their capacity to
support legislation and reform structures (Dowse, 2001). This starts with educating such
individuals about their rights from childhood and encouraging the expansion of their
representation in the society. However, the issue is that, as children and teenagers, many
people with disabilities do not acquire the requisite leadership and advocacy skills
because they are not offered the chance and right to pursue these skills (Grenwelge, Zhang
and Landmark, 2010), Moreover, experiences from the past also affect the future of
individuals with disabilities as they start believing themselves as an outcast in their own
surroundings.
Methods
This study is restricted to qualitative methodology, authors have spent significant amount
of time in reviewing national and international literature to examine the political, social,
economic and psychological challenges faced by face people with disabilities in India.
From December 2020 to April 2021, the online database Google Scholar was searched
using keywords. Google search engine was additionally utilized because it provided latest
and relevant information that may not be available in google scholar databases, for
example information pertaining to national and international laws on disability.
While looking for relevant information, same keywords were used for both google scholar
database and google search engine: disability, people with disabilities, children with
disabilities, individuals with disabilities, religion, gender discrimination, employment,
stigma, stereotype, attitudes, Hindu, Muslim, etc. To select articles and data for this
review, keywords were combined with Boolean operator “OR” and “AND” to arrive on
exclusion and inclusion benchmark.
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Given the scarcity of papers on the subject, the search terms were kept deliberately broad
in order to find any papers relating to people with disabilities and leadership models. The
included content had to be written in English and addressed the effect of social, cultural,
political, and economic factors on the inclusion of people with disabilities.
Results: Social, Cultural, Political and Economic spheres

There is abundant evidence that both societies - western and non-western - show various
attitudes to persons with disabilities (Ingstad, 1990). In developing countries, people with
disabilities have been constantly evaluated and judged by other people, and such
instances from the past are still very evident. Historically, people with disabilities were
perceived as unable to make their own choices and take care of their lives; they were
viewed as people who either need support or as subjects of sympathy and charity
(Coleridge, 1993).
India is a diverse nation in terms of ethnicity, history, faith, and ideology. Though India is
home to more than 90% of the world's Hindus, it also has large communities of Muslims,
Christians, Sikhs, Buddhists, Jains, and followers of folk faiths. Attitudes towards
individuals with disabilities from the views of various religious and cultural backgrounds is
especially vital within the context of Indian society. An ethnographic study conducted by
Gabel (2004) on North Indian Hindu immigrants reported three dominant beliefs about
people with intellectual disability (ID). A common belief being that a person acquires or born
with a disability as a result of bad deeds (karma) in a previous life. The third belief known was
that of a “mundh buddhi”, that is commonly utilized in Hindi language to
describe individuals with ID. Few examples from Ramayana and Mahabharata scriptures,
where manipulative servant, Manthara (with a hunchback) and King Dhritarashtra (blind)
were portrayed as evils and scheming (Wilson, 2019). Unlike Hinduism, the Muslim religion
emphasizes the various aspects of Islam practice, especially in terms of health care, disability,
and rehabilitation. Bazna and Hatab, 2005, as cited in Hasnain, Shaikh, and Shanawani, 2008
analysed the Quran and hadith's views on disability and came to the conclusion that disability
is morally neutral; it is neither a punishment nor a blessing from God, and it does not
represent any spiritual deformity. Unity and respect are at the forefront of religious life. No
religion, culture and beliefs play a role in sustaining discriminatory practices against persons
with disabilities. The time has come to hold a more in-depth conversation about the
important changes that religion, history, and values have made to disability and people with
disabilities.
The 2019 "State of the Education Report for India: Children with Disabilities" was based
on the 2011 census, which revealed that India has 7.8 million children with disabilities,
accounting for 1.7 percent of the total child population (India Today, 2019). According to
a UNESCO study, 75% of children with disabilities in India do not attend school (Agarwal,
2020). With each subsequent stage of education, the number of children enrolled in school
decreases dramatically, and there are less girls with disabilities in schools than boys with
138
disabilities in schools (India Today, 2019). It is difficult to measure and explain dropout
rates, but there are few evident reasons proposed by many education experts. For
example, accessibility issues, lack of access to schools, peer discrimination, disability
pattern and teacher’s involvement in class (Navya, 2018a). Interestingly, education is very
important for students regardless of type of disability, and they would face significant
obstacles in ensuring a secure future if unable to complete formal education. Peer
discrimination and children with disabilities have long been a topic of discussion in India.
They also face opposition from their extended family as well as the wider population.
Discriminatory actions directed at differently abled children in the society have been
classified as deprivation of disability, physical restrictions, social boycotts, denial of
property rights, reduced marital life chances due to impaired family member, effects on
sexuality of persons with disabilities, women with disabilities, disparities in state care
systems, and problems with measurement of disabilities (Janardhana, et al., 2015). Many
times, specific and untraceable emotional scars from the past, no matter how long ago it
was, can be extremely destructive for a person. Such stressful experiences in early
childhood leave mental scars which have a significant effect on adult life and individuals
with disabilities choose self-imposed exile from different spheres of society.
Physical appearance has many advantages in Indian society and both gender, male or
female, are obsessed on how one looks. Historically, our multi-cultural fraternity
constantly reminds us that bodily attractiveness is important in every part of our lives.
According to facts, society continues to attribute sociability, friendliness, and integrity to
those who are aesthetically pleasing (Mahajan, 2007). Jenna Goudreau (2013) in her
article, “Why Attractive People Are More Likely to be Leaders” illustrated on leadership
skills and aesthetic appearance. She cited findings of many authors supporting the
perception that good looking leaders have added advantage in many ways, for example
citing work of Stanford law professor Deborah Rhode who discovered that attractive
students are thought to be smarter, nice-looking professors receive better reviews,
appealing employers earn more money, and good-looking politicians receive more votes.
Inadvertently, people contributed to the creation of a false binary between intellect and
bodily aesthetics, and thus to a contrived representation of disability. The representation
of individuals with disabilities on screen and print media is also questionable. The media's
representation of people with disabilities may have a positive or negative impact on the
public's view of disability. Like normal people, individuals with disabilities have the same
access to mass media and negative portrayal about disability may perpetuate existing
public misunderstandings, especially for those millennials who have grown up in a social
media-dominated environment (Reinhardt, Pennycott and Fellinghauer, 2013).
Disfigured and objectionable portrayal of screen character authored by abled people,
portrayed by non-disabled actor, and told from the eyes of abled people. For one, may
make people with disabilities feel defeated in relation to exceptional achievements,
lowering their self-worth and triggering poor expectations from others. The society
conceptualizes image of people through their bodily limitations portrayed on different
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social platforms and subconsciously view disability as negative and unimportant without
even connecting with incredible diversity of disabled people.
Due to cultural, economic and political reasons, women in India are always at the
receiving end which had a detrimental effect on their quality of life. Social decisions are
influenced by the interaction between gender and disability perceptions. Many
international authors have discussed the double dimensions of disability from a
perspective of a women; “two handicaps plus” (Hanna and Rogovsky, 1991), “double
discrimination” (Habib, 2010), “double disadvantage” (Kavanagh et al., 2015), “a double
dose of discrimination” (Shah and Bradbury-Jones, 2018) in their research to bring
societal disequilibrium to the public’s attention. While both men and women with
disabilities face discrimination as a result of their disabilities, women with disabilities are
at a disadvantage due to the mixture of gender bigotry and disability discrimination
(Traustadottir, 1997). Similarly, the same paper demonstrates the three main phases in
life of women with disabilities, namely the conventional feminine domain of fertility and
nurturing; education; and employment and how they fare in these areas as compared to
women without disabilities and men with disabilities. In particular, there continues to be
a void in the literature discussing the reality of women with disabilities and their
leadership perspectives, styles, and growth in an Indian context. The disability and
feminine rights movements have often neglected topics that are important to women with
disabilities in this male-dominated guild.
In India, only 3.4 million of the approximately 13.4 million people with disabilities are active
in labour market (Verma and Venugopalan, 2019). The majority of studies reflect on
employers reservations around recruiting people with disabilities at work , for example,
being incompetent (Nario-Redmond, 2010) inflexible in terms of multi-tasking profiles (Kaye,
Jans and Jones, 2011), dependent personalities (Louvet, 2007), team dynamics issues and
relationship between employees with disabilities and other employees (Nario-Redmond,
2010; Louvet, 2007); absenteeism (Kaye, Jans and Jones, 2011; Daruwalla and Darcy (2005),
inability to handle job related stress (Bengisu and Balta (2011), and finally, customers related
insecurities. (Kaye, Jans and Jones, 2011; Bengisu and Balta, 2011). Contrary, surveys have
been conducted that show the advantages of skilled representation of people with disabilities
in the labour force: honesty (Nario-Redmond, 2010), low absenteeism (Hernandez et al.,
2008), Warm personality (Louvet, 2007), Loyalty (Hernandez et al., 2008), and Employees
with disabilities performed as well as or higher than their counterparts without disabilities
at work (Unger, 2002). Globally, there has been change of mindset and employers are
accepting disability as an instrument to have a diverse and inclusive professional
environment.
At many work places across the globe, corporate leaders with disabilities aren't necessarily
open about their disabilities, depriving workers with role models that could mentor,
encourage and empower them (Henneborn and Jerdee, 2020). In fact, according to this study
by Accenture, the majority of workers (76%) and leaders (80%) with disabilities are not
entirely honest about it. Empowering individuals will continue to eliminate workplace bias
140
and prejudices because those who have been empowered can become self-reliant as a result
of the skills they have learned and will be able to find employment. As a result, these
empowered individuals have unintentionally stepped in to the shoes of becoming a leader
and have successfully embarked on a journey to inspire multiple lives.
The government, as social welfare state, should not just provide standard legislations to
safeguard the rights of minorities, but should introduce tailor made interventions to
comprehend the safety of fellow citizens. Many developing countries such as India have
introduced many legislative instruments to improve the lives of people with disabilities,
through progressive legislations and/or policies (Kochhar et al., 2018). Despite major
reforms in disability laws that foster equality, individuals with disabilities continue to face
significant discrimination (Ball, Monaco and Schmelig, 2005). Additionally, in most poor
economies, where everybody is struggling for survival, disability is not usually seen as a
priority in development, except by disabled people and their families (Coleridge, 2000).
In India, Right of Persons with Disabilities Act 2016 replaces the Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. One of the
salient feature of this new Act is that the types of disabilities has been increased from
existing 7 to 21 (No name, 2020). The preamble of this act clearly states that it aims to
uphold the dignity of every Person with Disability (PwD) in the society and prevent any
form of discrimination (Math et. al., 2019, p. 2). Another highlight of this law is the
extension of its applicability to private firms. The revised Act received critiques from the
disability advocates as they observed that the legislature could have chosen a path more
persuasive than punitive (Kochhar et al, 2018).
In an article by Navya (2018b) highlighted that there have been very few individuals with
disabilities who have made their representation at regional and national political level in
India. A few individuals with disabilities have contested as independents or as smaller party
candidates during the past decade, but not many have won. She also reported that the
disabilities sector has been largely left out, although political parties cater to other
disadvantaged communities, and routine rights abuses are being faced by this marginalized
group.
There are so many inspiring individuals with disabilities who have changed the world
with their examples and have accomplished “space” in society through their actions,
attitude, determination and commitment (Table 1). When you lead by example, you create
a picture of what's possible. People can look at you and say, "Well, if he can do it, I can do
it." When you lead by example, you make it easy for others to follow you. (Marinuzzi,
2018). Such revelation help people regardless of gender, age, race, disability to create new
personal goals, improving skills, and strengthening their professional development.
Such strong individuals with disabilities use their networks, forums, and NGOs to support
other individuals with disabilities. For one, only a few of the ways they benefit are by
delivering food, educational opportunities, and contributing to charity. While there were
141
a few influential politicians with disabilities, such as Congressman Jaipal Reddy, he did
not take up the cause of the community (Pareek, 2014).
Tab 1: List of Achievers with Disabilities.

Sr. Name of the Profession Type of Remarks
No. Achiever disability
1. Mr. S. Jaipal Politician Polio What we will remember about the guy is that his
Reddy condition (at a very young age, Reddy was stricken
with polio) never prevented him from attending any
meetings, even though they were held in buildings on
the second or third floor that did not have lifts
(Pallam Raju, 2019).
2. Ms. Usha Sarpanch, Polio General Secretary of the NGO Karnataka
Kiran Naik Disability and Vivkalachethana Sanghatane and President of the
Sexuality Swaraj India Party of Chikballapur District. In
Rights Activist Chikballapur in Karnataka, Naik spent many years
working with women with disabilities and people
with HIV (Walia et al., 2020).
3. Mr. Javed Disability Spina When he turned 15, he was diagnosed with spina
Abidi Activist bifidia bifidia and further complications made him a
wheelchair-user. In his life, even this jolt did not deter
him from going abroad to complete his schooling and
fulfill his aspirations of being a journalist. He has been
actively interested with disability issues for years and
is the head of the National Center for Job Promotion for
People with Disabilities (NCPEDP) (Pareek, 2014), and
Director of the National Centre for the Development of
Jobs for Disabled Persons (NCPEDP) and also Director
of the Global Chair of International Disabled Persons
(DPI), the first international body for persons with
disabilities with an ECOSOC Advisory Status to the
United Nations (United Nations, n. d.). He advocated
public services and travel mobility for people with
disabilities and his powerful support was instrumental
in the passage of the Persons with Disability Act in India
in 2016 (United Nations, n. d.).
4. Ms. Nishtha N. Motivational Muscular Nishtha N. Thaker, Motivational Speaker, Social
Thaker Speaker, Social Dystrophy Activist, and MD & Founder Trustee of Spreading
Activist and Smiles Charitable Trust (Possiabilities, 2020). Nishtha
Managing is a resolute citizen who motivates and encourages
Director other people who are affected by muscular dystrophy
through her untiring efforts (Joshi, 2014).
5. Ms. Minati Sarpanch. Wheelchai In Odisha (Kantabania Gram Panchayat), the first
Barik r-Bound female wheelchair candidate ever to win an election
Person and who has improved significantly the hygiene and
sanitation of her village, Bajapur (Walia et al., 2020).
6. Ms. H. Wheelchair A Quadrip Boniface Prabhu is a player with international
Boniface tennis player legic renown in wheelchair tennis. In order to promote,
Prabhu Person train and discover new talent among the physically
and mentally disabled population, he created the
'Boniface Prabhu Wheelchair Tennis Academy' (No
name, 2014).
Source: Authors own interpretation based on literature review

142
Most of people are having difficult experiences and are exposed to the horrifying aspects
in their formative years. Therefore, they have a hard time understanding that not
everyone is mean or world is not a bad place to live. Past experiences should not have an
impact on the future. Everyone understands what leadership is, but only a few people can
actually recognize their true potential as a teacher. Creating a cohesive environment
within the society is a crucial step to help people to polish their unique talent and maintain
a strong leadership focus. People with disabilities can overcome what was and take charge
of their own life. It's important to keep things in perspective.
In future, developmental efforts should eliminate barriers resulting from political,
societal, religious, cultural, gender bias, or economic loopholes. In the end, this will help
oppressed people gain self-confidence, and if that process begins, an individual will be
ready to tap and channel their creativity, intellect, and ability positively. People with
disabilities, like most people, are required to exhibit leadership skills and be respected as
leaders (whether in official roles or not) and how the public perceives their particular
style of becoming a figurehead.
Conclusion
The aim of this research paper was to look at how social and economic factors affect
people with disabilities, as well as to look into why people with disabilities are
underrepresented in leadership roles in Indian society. People's attitudes, specifically
society's attitudes, which include social and cultural values, stigma, bigotry, and
stereotyping, not only shape the definition of disability, but also serve as a focal point for
negative emotions.
In conclusion, this study discovered several common trends regarding the lack of
representation of people with disabilities in leadership roles. Gender inequality, cultural
and religious values, inclusive education concerns, labour market participation, and the
stigma that persons with disabilities face in the Indian society are among the most
common and consistent topic emerged in this qualitative research.
Women in leadership roles have gained less recognition in India. Across the different
states, women with disabilities have witnessed discrimination and stigma which over the
course of a person's life, manifests in separate or several generational junctures
(childhood, youth, adulthood and older age) (Shah and Bradbury-Jones, 2018). Disability
sensitivity programs for children in preschool, kindergarten, and high school are
necessary to teach them to be empathetic, tolerate physical distinctions, and be
compassionate of their peers.
Given this context, the media's power to affect perceptions and opinions towards
disabilities should not be ignored. Increased awareness through different forms of digital
platform could help people with disabilities to appreciate their uniqueness, and
encourage them to promote their extraordinary accomplishments to the world.
143
This study could also be extended to the permanent and temporary category of employees
at the lower grades, where they could judge the leadership qualities of top and middle
management. It could also be extended to other states of India and even globally, since all
people with disabilities have a significant global presence. Furthermore, these
unconscious prejudices and stereotypes attached to disability have an effect not only on
social and professional relationships, but also on one's quest to seek a place in leadership
forepart. People with disabilities at leadership positions can create a more inclusive
society and increase awareness not about disability but also about the different type of
impairments.
World is full of individuals with disabilities who, by their endeavors, have overcome all
the hurdles life has thrown at them and turned the spotlight on themselves. They were
made better by these challenges, particularly by not following the conventional survival
approaches and succeeded to inspire other people with disabilities to foray into different
avenues.
In India, the small number of studies published on the subject limits this study and one of
the limitations faced by authors. Our search was restricted to google scholar database and
google search engine, it's likely that certain studies were overlooked.
Most importantly, the government will have to find gaps in existing legal framework,
provide academic opportunities and access to all kinds of resources needed by individuals
with disabilities to appreciate their talent to make a mark in society for not only
themselves, but also for others. This is vital point to bear in mind when collaborating on
multi-disciplinary studies and inclusive growth initiatives in India.
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148
Impact of macroeconomic factors on the MTPL insurance in

Latvia
Aivars Spilbergs1, Andris Fomins1, Māris Krastiņš1
1BA School of Business and Finance
Abstract
The objective of the article is to do a research on current and the most important
issues regarding the impact of macroeconomic factors on one of the most widespread
insurance products - Motor Third Party Liability insurance (MTPLI). A research has
been made to evaluate the actual presence of the MTPLI insurance in the Latvian
market of motor vehicle insurance and the presence in the general insurance portfolio
at European level. The authors studied the performance of Motor Third Party Liability
insurance in the Latvian insurance market from 2005 till 2019. This research
examines the actual problems of Latvian insurance market in the context of the impact
of macroeconomic indicators on MTPLI product performance. Further considerations
regarding the macroeconomic impact on MTPLI have been made, taking into account
the role of the macroeconomic factors on the demand for the specific insurance
product. The paper focuses on the analysis of factors determining development of the
insurance market as well. An overall evaluation of the impact of macroeconomic
factors on the MTPLI in Latvia has been carried out.
Keywords: Motor Third Party Liability insurance, macroeconomic factors, insurance

consumption, insurance premiums.
Introduction
A developed and stable insurance market is an important part of any economic system. In the
current economic conditions, there is a lot of competition in the Latvian insurance market,
therefore, in order to successfully attract customers and develop a competitive business, it is
especially important for each insurance company to understand the macroeconomics impact
to insurance business. Insurance plays an important role in supporting economic activity, and
149
the insurance mechanism makes a significant contribution to the country's sustainability by

compensating for financial losses. The insurance industry provides coverage for various
types of risks, reducing uncertainty and unpredictability for both individuals and companies.
The fact that insurance plays an important role of any economy has been proven in several
studies and has been recognized as an essential factor for successful economic development.
Insurance as a financial concept is designed to manage risks, seeks to provide security for
economic growth or to hedge against uncertain loss. Although the market has been incredibly
profitable, the insurance industry is highly fragmented, and the sector is fraught with
challenges (Kaffash et al., 2020). Adapting to the changing conditions of the world, new types
of insurance are emerging (Shaw and Bauman, 2021). Apergis and Poufinas (2020)
concluded in their study on the role of insurance growth in economic growth that insurance
is one of the main activities in the globalized financial and economic environment, and the
study confirmed that the activities of insurers are significantly and positively associated with
economic growth. Accordingly, we can say that insurance affects the economy, and
conversely, the economy affects the insurance industry. In this study, the authors examine
the impact of the economy on the insurance industry. Given the cross-country heterogeneity
in insurance consumption, the literature has widely accepted that the adjustment dynamics
of insurance premium are complex and varied from one country to another (Chang, Lee and
Chang, 2014). Several theoretical and empirical studies have more precisely indicated that
the insurance premium grows nonlinearly with macroeconomic factors (Enz, 2000; Zheng,
Liu and Dickinson., 2008; Lee and Chiu, 2012). Studies mainly utilize a conventional linear
model specification to investigate the relevant issues of insurance market development and
economic growth, e.g., Ward and Zurbruegg (2000) and Kugler and Ofoghi (2005), to mention
a couple. However, the literature has extensively supported that a number of important
macroeconomic variables should exhibit non-linear behavior. As to financial markets, they
may also exhibit non-linear behavior resulting from the presence of market frictions and
transaction costs, as well as the interaction between heterogeneous traders (McMillan, 2003).
Since insurance premiums are usually based on projected investment income and expected
losses, which are related to business cycles, it may be reasonable to expect a significant
interrelationship exists between insurance markets’ activities and macroeconomics (Lee and
Chiu, 2012). Consequently, the non-linear model specification is more appropriate than the
simple linear setting to examine the insurance-growth nexus (Lee, Lee and Chiou, 2017).
Christophersen and Jakubik (2014) suggest that the nominal GDP is the key driver for
non-life insurance, while unemployment is a driving factor for premium growth on the
life side. Use of such models could provide a projection of insurance market growth under
different macroeconomic scenario and help to assess key risks for the insurance sector
(Christophersen and Jakubik, 2014).
Non-life insurance activities may be linked to the general economic performance of the
national economy and may be related to changes in real GDP. The reason to include
income variables is not only because of the wealth and income effect on attitudes toward
risk, but also the economic growth effect, which creates more insurable risk as a result of
150
the increase in goods, such as houses and automobiles, and affects the demand for
insurance. Kristīne Sūniņa-Markēviča (Sūniņa, 2003) suggests that the following factors
are the most important in determining the total amount of premiums in the insurance
market:
• general situation in the insurance market. If insurers have accumulated reserves
and there have been no significant insurance events for several years in a row, they
might lower the prices of insurance services. Even if such reserves are
accumulated by only few market participants, everyone is forced to lower prices
in a competitive environment. Thus, the total amount of the insurance premiums
in the market depends on the methodology calculated by each participant. Insurers
use their own methodology by determining factors, which are the most important
in determining the amount of premiums;
• a wide range of regulatory, risk and economic factors determine insurers’
calculations of premiums. Premiums are set in proportion to the expected risks
and need to cover expected claims as well as operational, administrative costs and
other obligations. All these factors differ widely from one country to another,
which explains the varying levels of average insurance premiums across Europe
(Sūniņa, 2003).
Tian et al. say that price of the insurance products is usually determined by demand and
supply; thus, factors affecting the demand side or supply side can have impacts on price
determination. When the revenue from investment is considerable, insurance firms may
lower the expectation on underwriting profit, which means that insurance firms can
underwrite some relatively bad risk that they would not accept otherwise or underwrite
standard risk with a lower price. According to definition of insurance price, insurance
price reflects the margin that insurance firms can obtain from selling the policies. Thus,
insurance price has a negative relation with investment profitability, a proxy for rate of
market return. Premiums are usually thought to be the discounted present value of future
costs; thus, it is not surprising to see that the interest rate, a proxy for discount rate, is
negatively related with insurance price (Tian et al., 2018).
GDP serves as an indicator for potential losses and mainly influences the demand side of
the model. The results indicate that, compared with the U.S. and Switzerland, the Japanese
insurance market reveals quite different features for both GDP and interest rate
implications. Lamm-Tennant and Weiss (1997) use a generalised least square regression
model to analyse the changes in premiums with respect to the changes in lagged losses,
interest rates, average stock prices and real gross domestic products of nine developed
countries. The changes in GDP usually have neutral or even negative impacts on insurance
premiums, as in the cases of Italy, Japan and Switzerland (Tian et al., 2018). Chen, Wong
and Lee (1999) focus on Asian countries for the first time and report that the changes in
GDP have no impact on insurance premiums in Japan and Taiwan. Because a significant
relationship between the premium and real gross domestic product is identified after
accounting for the claim paid in Lamm-Tennant and Weiss (1997) and Chen, Wong and
151
Lee (1999), it is reasonable to assume that GDP is related to insurance price (Tian et al.,
2018).
Methods and data

The objective of the study is to find out the macroeconomic indicators that determine the
demand for Motor Third Party Liability insurance (MTPLI) with a sufficiently high level of
confidence and to assess the degree of impact of the relevant factors.
Based on the literature analysis and the study of macroeconomic indicators available in
the databases (Eurostat, OECD and local Statistical Bureau), a list of variables was created
for a more in-depth study of MTPLI gross premium (MTPLIGP) volumes and growth rates
using correlation analysis.
The simulation method was used to find out the relationships between the dependent
variables (the amount and increase of MTPLI) and the selected independent variables based
on Latvian insurance market data for the period 2005-2019. Various combinations of factors
as well as linear and nonlinear forms of relationships were tested. The statistical stability of
the generated models was tested using the F test, but the regression parameter stability was
tested using t tests. Durbin–Watson test was used to detect the presence of autocorrelation
in the residuals. The best fit models were determined using the coefficient of determination
(R2) and p-values.
Results and Discussion

The scope of insurance product covered in this paper: non – life insurance products group,
motor insurance division. It should be mentioned that definition of “motor insurance” are
distinguished, namely liability for motor vehicles to third parties (MTPLI) and own
damage to the engine (MOD). In our study, we analyze the extent to which economy
characteristics can explain premiums of MTPLI.
The Motor insurance can also be made taking into account the degree of autonomy of the
parties to the insurance contract (Sliviski, Poliychronidou and Karasavvoglou, 2019). In
this case, it stand out:
• Compulsary insurance – concluded as a result of an order resulting from directly
applicable laws; the main representative of this group is compulsory MTPLI
• Voluntary insurance – there is no obligation to conclude a contract, expl. Motor
Own damage.
In the futher part of the paper, authors will limit to considerations to compulsory third-
party liability insurance calling them interchangeably both motor insurance and MTPLI.
MTPLI due to its mandatory nature is the most frequently concluded insurance in various
European Union (EU) countries (Andreeva, 2019). MTPLI is homogeneous across the EU
in terms of insurance cover provided, as well scope included: any damages to property
152
and health of victims caused by the drivers fault. Under the 2009 motor insurance
directive (European Commission, 2009) anyone who holds a compulsory motor insurance
policy in an EU country is covered to drive throughout the EU. The directive regulates
such aspects, as:
• obliges all motor vehicles in the EU to be covered by compulsory third party
insurance
• abolishes border checks on insurance, so that vehicles can be driven as easily
between EU countries as within one country
• specifies minimum third-party liability insurance cover in EU countries
• specifies exempt persons and authorities responsible for compensation
• introduces a mechanism to compensate local victims of accidents caused by
vehicles from another EU country
• requires claims about accidents in an EU country other than the victim's country
of residence to be settled quickly (so-called visiting victims)
• entitles policy holders to request a statement of any claims involving their vehicle,
which were covered by their insurance contract, over the last 5 years
According to the Organization for Economic Co-operation and Development (OECD)
classification, at the macroeconomic level, the effectiveness of insurance companies is
assessed according to the following criteria (Kwon and Wolfrom, 2016): insurance
premiums (volume and growth), premiums per employee, insurance density and
distribution; the share of life and non-life insurance in the total insurance market;
national market share OECD; market share of foreign insurers in the domestic market;
balance sheet and income; portfolio distribution; accepted reinsurance ratio; retention
ratio (net written premiums / gross written premiums); loss ratio, expenditure ratio and
combined ratio (non-life). P&C insurance is typically characterised by cycles of upward
and then downward movements in premiums and combined ratios. A cycle comprises a
hard market of intense competition and a soft market in which reserves can be
accumulated.
Over the past decade, motor premiums in Europe grew 8.1%, largely due to an 18.1%
increase in optional motor damage insurance. Premiums for mandatory MTPLI cover
decreased 0.8% over the same period. After four consecutive years of decline (2011–2014),
total motor claims expenditure rose slightly (0.6%) in 2015, followed by a further 4.5%
increase in 2016, to total EUR 103.5bn (Insurance Europe, 2019). MTPLI premiums
increased up 1.0% in 2015 and 4.0% in 2016 to reach EUR 61.1bn. Strong growth in 2016
was recorded in Turkey (+76.3%), Poland (+42.9%) and Hungary (+34.2%), whereas
several other markets experienced a decline, notably Latvia (-15.8%), Greece (-9.6%), Italy
(-4.9%), Finland (-2.2%) and Norway (-1.6%). Large and mature markets such as Germany,
Spain, France and the Netherlands registered 2.9%, 2.7%, 1.2% and 0.5% growth
respectively. Average MTPLI premiums rose by a modest 1.1% in 2016 to €205 as a result
of a 4.0% increase in premiums and a 2.9% increase in the number of policies (Insurance
Europe, 2019).
153
The average motor premium in 2016 ranged from EUR 66 in Latvia to EUR 622 in the UK.
The number of claims rose 2.3% in 2015 and 1.9% in 2016.
Motor insurance is cyclical in nature too. The financial crisis of 2007–2008 left its mark
on the European motor sector: the highest combined ratio (108.1%) and the worst
underwriting results (-EUR 5.5bn) were recorded in 2009. Most European countries
registered their highest combined ratio in the 2008–2010 period, notably Germany
(107%), France (109%), Italy (119.5%) and the UK (115.6%). After the 2008–2010 peak,
combined ratios and underwriting results started to improve but then began to rise again
in 2016.
The MTPLI is the largest non-life insurance product in Latvia and forms one fifth of the
total non-life insurance portfolio (See Table 1).
Tab. 1: Gross Written Premiums and proportion of types of insurance in the Latvia in
2019.
Gross premiums written by Non-life Insurance Companies. (Thousands of EUR) 4 quarters 2019
Total 442,121.00
Motor vehicle liability insurance 126,295.00
Land vehicle insurance 95,889.00
Property insurance 67,192.00
Motor vehicle liability compulsory insurance 47,665.00
Health insurance 47,541.00
General liability insurance 13,722.00
Suretyship insurance 13,643.00
Assistance insurance 13,063.00
Accident insurance 10,139.00
Ship insurance 3,076.00
Goods in transit insurance 1,968.00
Insurance against miscellaneous financial losses 886.00
Railway rolling stock insurance 341.00
Credit insurance 328.00
Aircraft ownership liability insurance 146.00
Aircraft insurance 110.00
Ship ownership liability insurance 104.00
Legal expenses insurance 17.00
Source: Latvian Insurers Association (2020).
The same situation can be observed in EU on the whole, where Motor insurance has the
largest share in non-life insurance products portfolio (See Table 2).
154
Tab. 2: Total premiums by business line in the EU — 2017–2018 (bn EUR).

Product Line 2017 2018 Growth
Life 718 764 6,7%
Health 134 140 4,8%
P&C 389 407 5,7%
Motor 140 144 3,8%
Property 101 105 4,8%
General Liability 40 43 6,9%
Accident 37 37 2,5%
Total 1241 1311 6,2%
Source: Insurance Europe (2021)
MTPLI product for a long time - in the period from 2011 to 2018 has had a higher loss
ratio than the total insurance portfolio in Latvia. Here is a Graph 1.
According The Financial and Capital Market Commission (FCMC) the MTPLI market in
Latvia has been loss-making for the insurance industry for a long time - in the period from
2010 to 2017 (The Financial and Capital Market Commission, 2021), which has not
motivated insurance companies to develop this service and create more precise pricing
criteria for this insurance service.
The research will promote the development of scientific discussions on the problems and
current issues of the insurance industry in Latvia.
Graph 1: MTPL insurance and total insurance portfolio loss ratio in Latvia 2010-2020,%.
100%
80%
60%
40%
20%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total insurance portfolio MTPL insurance
Source: FCMC (2021)
These considerations raise the need to find out and study the related processes in depth,
finding answers to what factors influence the written premium of MTPLI.
The diversity of the national motor insurance markets in Europe reflects differences in EU
member states’ regulatory, risk and economic environment. Over the past decade, the
motor insurance share of property and casualty (P&C) business in Europe has been
steadily decreasing (See Graph 2).
155
Graph 2: Motor premiums as proportion of P&C premiums in Europe, 2007 – 2016.
Source: (Insurance Europe, 2019)
Nonetheless, motor remained the largest P&C business line at 38% in 2016, followed by
property insurance (27%) and general liability insurance (11%). Europe’s national motor
insurance markets are generally very competitive, but tend to be subject to cycles of
expansion and contraction. (Insurance Europe, 2019). The number of vehicles on the road
depends largely on the economic environment and the demographics in each state.
Boosted by European economic recovery, the number of insured vehicles increased 3.4%
between 2014 and 2016. The total number of MTPLI and damage policies increased 4.8%
between 2014 and 2016 and 3.0% between 2015 and 2016. Most countries experienced
growth in the total number of MTPLI and damage policies (Insurance Europe, 2019).
Based on the literature analysis and the study of macroeconomic indicators available in
the databases (Eurostat, OECD and local Statistical Bureau), a list of variables was
determined for a more in-depth study of MTPLI gross premium (MTPLIGP) volumes and
growth rates for the period 2005-2019 using regression analysis methods, see the
following table.
Tab. 3: Macro indicators correlation with MTPLIGP amounts and MTPLIGP growth.
Unit of MTPLIGP
Factors Denotation MTPLIGP growth
measure amounts
Passenger cars registered thousands PCR 0.8491 0.4583
Total cars registered thousands TCR 0.8303 0.4746
HICP y-o-y, % HICP 0.7945 0.5598
HH debt to GDP % HDG 0.6245 -0.1203
Investments to GDP % INVG 0.5711 0.6633
Private sector debt to GDP % PSD 0.5406 -0.2579
Long-term interest rate % LTR 0.5305 -0.3080
Net wages growth rate y-o-y, % NWG 0.4609 0.7994
GDP growth % GDP -0.3285 0.4742
Unemployment rate annual, % UNPL -0.1331 -0.7238
HH disposable income y-o-y, % HDIG -0.0815 0.6755
Source: Calculated by authors based on The Financial and Capital Market Commission and
Eurostat data.
156
As can be seen from Table 3, MTPLIGP volumes are most significantly affected by
indicators such as passenger cars registered (PCR), total cars registered (TCR) and
Harmonised Index of Consumer Prices (HICP), as shown by the correlation coefficients of
0.8491, 0.8303 and 0.7945, respectively. The growth of the MTPLIGP, on the other hand,
is most strongly influenced by indicators such as net wage growth (NWG), unemployment
rate (UNPL) and household disposable income growth (HDIG), as shown by the
correlation coefficients of 0.7994, -0.7238 and 0.6755, respectively.
Graph 3 shows the associations of the major macro indicators with the MTPLIGP volumes.
Consequently, we see that as PCR, TCR, HICP and HH debt to GDP increases, so do
MTPLIGP premiums.
Graph 3: Macro indicators and MTPLI gross premiums trends
Passenger cars registered Total cars registered

120 120
100 100
80 80
60 60
40 40
20 20
00 00
600 650 700 750 800 850 900 950 750 850 950 1050 1150 1250
Harmonised Index of Consumer Prices Household debt

120 120
100 100
80 80
60 60
40 40
20 20
0 0
-5 0 5 10 15 20 15 20 25 30 35 40 45 50 55
Source: Created by authors, based on FCMC and Eurostat data
Following Graph 4 shows the associations of the major macro indicators with the
MTPLIGP growth.
157
Graph 4: Indicators and MTPLI gross premiums growth trends
NWG UNPL
80 80
60 60
40 40
20 20
0 0
-10 0 10 20 30 40 3 6 9 12 15 18 21
-20 -20
-40 -40
HDIG INVG
80 80
60 60
40 40
20 20
0 0
-15 -10 -05 00 05 10 15 20 15 25 35 45 55 65 75
-20 -20
-40 -40
Source: Created by authors, based on FCMC and Eurostat data
Consequently, we see that as net wages (NWG), household disposable income (HDIG) and
investments (INVG) increases, so do MVLCIGP growth. And opposite, as unemployment
increases, MTPLIGP growth decreases.
The regression model

Let MTPLIt be dependent variable in year t. Further, let x1t,…,xkt denote independent
variables (macroeconomic indicators) and bit,…,bkt denote regression coefficients of
independent variables, than the model can be expressed as in equation:
𝑀𝑇𝑃𝐿𝐼𝑡 = 𝑓(𝑥1𝑡 , … , 𝑥𝑘𝑡 ) + 𝜀𝑡 (1)
where 𝜀𝑡 – the error term.
During the research, combining the selected factors, linear and polynomial regression
models were calibrated which passed the F-test at the confidence level of 0,95 and the
Durbin Watson test with α = 0,05.
The following table summarizes the coefficients of determination, F-statistics and p-
values for top 8 statistically significant models for MTPLIGP volumes.
158
Tab 4: Top 8 regression models statistics

Model type Variables R2 F p - value
Polynomial TCR 0.8816 44.67 <0.01%
Polynomial PCR 0.8670 39.11 <0.01%
Polynomial HICP, LTR 0.8616 37.36 <0.01%
Polynomial HICP, HDG 0.8434 32.32 0.01%
Linear NWG, GDP 0.7887 22.39 0.05%
Linear NWG, GDP per capita 0.7595 18.95 0.09%
Polynomial HICP 0.7397 36.94 <0.01%
Linear PCR 0.7209 33.58 <0.01%
Source: Calculated by authors based on FCMC and Eurostat data.
As one can see, the top 8 regression models explain more than 72%, while the top for
regression models explain at least 84% of the total MTPLI gross premiums variability. The
F-test results show that the statistical stability of all top 8 models is high (<0.1%), but the
probability of statistical error of the first tree models is even lower than 0.01%.
The following table summarizes the regression coefficients and t-test p-values for top 8
statistically significant models for MTPLIGP volumes.
Tab 5: Top 8 regression models for MTPLIGP volumes variables statistics

Regression Regression
Model variable p - value Model variable p - value
coefficient coefficient
TCR2 0.0006 0.042% PCR2 0.0010 0.172%
TCR -1.1474 0.098% PCR -1.3846 0.372%
Intercept 548.7276 0.115% Intercept 511.9497 0.431%
HICP2 0.2881 0.001% HICP2 0.2685 0.004%
LTR 2.3055 0.347% HDG 0.7622 0.773%
NWG 2.3265 0.002% NWG 2.2407 0.005%
GDP -3.3433 0.005% GDP per capita -3.2476 0.011%
HICP2 0.3173 0.002% PCR 0.1774 0.003%
Intercept 40.9970 0.000% Intercept -78.0742 0.211%
As one can see from Table 5, the regression coefficients t-test p-values for all top 8 models
do not exceed 0.8%, indicating strong relationship between MTPLI gross premiums and
relevant macro indicators.
159
The following table summarizes the coefficients of determination, F-statistics and p-

values for top 8 statistically significant models for MTPLIGP growth.
Tab 6: Top 8 regression models for MTPLIGP growth variables statistics

Model type Variables R2 F p - value
Polynomial INVG2, ln(GDP per capita) 0.7750 20.66 0.067%
Polynomial NWG2, GDP per capita 0.7701 20.09 0.075%
Linear INVG, ln(GDPper capita) 0.7551 18.50 0.103%
Linear INVG, GDP per capita 0.7475 17.76 0.120%
Linear INVG, GDP 0.7465 17.66 0.122%
Linear NWG, GDP 0.7405 17.12 0.138%
Linear NWG, GDP per capita 0.7305 16.26 0.166%
Linear NWG, GDP 0.7168 15.19 0.212%
Linear GDP per capita, INV 0.7159 15.12 0.215%
As one can see from Table 6, the top 8 regression models explain more than 71%, while
the top for regression models explain almost 75% of the total MTPLIGP growth variability.
The F-test results show that the statistical stability of all top 8 models is high (<0.22%),
but the probability of statistical error of the first two models is even lower than 0.1%.
The following table summarizes the regression coefficients and t-test p-values for top 8
statistically significant models for MTPLIGP growth.
Tab 7: Top 8 regression models for MTPLIGP growth variables statistics.

Model variable Regression coeff. p - value Model variable Regression coeff. p - value
INVG2 0.0968 0.002% NWG2 0.0959 0.002%
Ln(GDP per capita) 101.040 0.067% GDP per capita 6.1922 0.077%
Intercept -338.287 0.029% Intercept -158.360 0.013%
Model variable Regression coeff. p - value Model variable Regression coeffi. p - value
INVG 5.2813 0.003% INVG 4.3852 0.007%
ln(GDP per capita) 99.7223 0.100% GDP per capita 13.0131 0.121%
INVG 4.6104 0.006% NWG 2.3291 0.007%
GDP 0.0038 0.124% GDP 0.0020 2.555%
NWG 2.2480 0.011% NWG 2.6022 0.007%
GDP per capita 6.8129 3.323% INV 0.0024 4.721%
As one can see from Table 7, the regression coefficients t-test p-values for all top 8 models
do not exceed 5,0%, indicating strong relationship between MTPLIGP growth and relevant
macroeconomic indicators.
160
Conclusions
The results of the study allow concluding that macroeconomic developments have a
significant impact on the demand for MTPLI - both the changes in amount of premiums
and in premium growth can be explained by macroeconomic indicators with a high level
of confidence. Consequently, business volume forecasts for the insurance industry and the
companies operating in it can be reasonably compiled on the basis of macroeconomic
development scenarios with a relatively high level of reliability.
However, it should be noted that no model is perfect by definition. In addition, both the
level of macroeconomic development, as well as intercultural differences and the
dynamics of the two, cause changes that cannot be ignored. Therefore, first, MTPLIGP
models need to be calibrated based on local data and regularly updated, and second, it is
desirable to maintain more than one regression model in order to be able to base
forecasting on a set of macroeconomic indicators that cannot be included in the model at
the same time due to their statistical incompatibility (non-compliance with regression
analysis assumptions). In this way, using the predictions of several models and weighing
them, e.g. based on R2, it is possible to increase the reliability of the obtained results.
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Aivars Spilbergs, Dr.oec. BA School of Business and Finance, K.Valdemara str.161, Riga,
Latvia, LV1013, e-mail: [email protected]
Andris Fomins, Dr.oec. BA School of Business and Finance, K.Valdemara str.161, Riga,
Latvia, LV1013, e-mail: [email protected]
Māris Krastiņš, Mg.oec. BA School of Business and Finance, K.Valdemara str.161, LV1013,
Riga, Latvia, e-mail: [email protected]
163

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LITTERA SCRIPTA

Ing. Veronika MACHOVÁ, MBA (Editor-in-chief)

Institute of Technology and Business in České Budějovice

The Journal is indexed in:

doc. dr. sc. Mario BOGDANOVIĆ

prof. Lisa BURKE-SMALLEY, Ph.D. SPHR

PaedDr. Mgr. Zdeněk CAHA, Ph.D., MBA, MSc.

prof. Ing. Zuzana DVOŘÁKOVÁ, CSc.

prof. Allen D. ENGLE, DBA

prof. Ing. Jan HRON, DrSc., dr. h. c.

prof. Ing. Jiřina JÍLKOVÁ, CSc.

prof. Kevin P. KEARNS, Ph.D.

Prof. Gabibulla R. KHASAEV

prof. Ing. Tomáš KLIEŠTIK, PhD.

József POÓR, DSc.

Ing. Vojtěch STEHEL, MBA, PhD.

doc. Ing. Jarmila STRAKOVÁ, Ph.D.

prof. Ing. Miroslav SVATOŠ, CSc.

prof. Ing. Jan VÁCHAL, CSc.

prof. Ing. Marek VOCHOZKA, MBA, Ph.D., dr. h.c.

Ing. Jaromír VRBKA, MBA, PhD.

prof. Liu YONGXIANG

prof. Shen ZILI

Ing. Simona HAŠKOVÁ, Ph.D.

Specification of product value as a key part of Canvas business 1

Is CarSharing a profitable business model for automotive OEMs? 11

Impact of the coronavirus pandemic on the tertiary sector 28

Customer manipulation during grocery shopping 40

Comparison of Funding Corporate Education in the Czech Republic 51

Motivated employees as key to success of any organization 61

A historical excursion through the development of cryptocurrencies 71

Language courses as tool to motivate employees in South 86

The Development of the Financial Health within the Fishing 123

Impact of macroeconomic factors on the MTPL insurance in Latvia 149

Specification of product value as a key part of Canvas

Petra Domanižová2, Nikola Janíčková1, František Milichovský2

1Brno University of Technology, Faculty of Business and Management, Department of Finance

partial solutions. It continues to be confirmed that small and medium-sized enterprises,

business model can be understood as a strategic plan to be fulfilled through the

Figure 1: Connecting sustainability and industry 4.0 to the business model.

Source: Man and Strandhagen (2017).

Methods and Data

Contact address of the authors:

Is CarSharing a profitable business model for automotive

Aljoscha Groos1, Zuzana Stoličná1

1Comenius University Bratislava

Methods and Data

Mini vehicles (No Name, 2019e).

Tab. 1: Cost overview

Costs / revenues not considered

Tab. 2: Fixed Costs

Tab. 3: Variable Costs

Tab. 4: Break Even

Frequency of use and duration

release from ShareNow (Süddeutsche Zeitung, 2020) mentions an average of 35 minutes

Tab. 5: Break Even Bookings

Compensation for declining demand

Contact address of the authors: