INSTITUTE OF BUSINESS MANAGEMENT

Quiz n0 1 Spring 2021

Course Title: Emerging organizational model for dynamic change. Course Code : Man419
Faculty: Abdul Hameed Khan Section: MWE 13478
Day /Date: 9 February 2022 Timings: 12 February

Student’s Name: Samra Shafiq

Student ID: 18970

Total marks 05

Note: Write the answer in your own words. Always give reference at
the end where it is due.
1. What factors favored wework for the emergence of their new business
model. And what is Wework business model.
2. The perception that Wework is dead is proved wrong. Explain why this
perception was created and how it is proved wrong.

Answers:

Answer 1: WeWork is a US company that furnish shared workspaces and offices to startups,
freelancers and, increasingly to global organizations.
There were a lot of factors that favored this new upcoming business model. However, main
factor was recession. At the time of recession, Adam Neuman recognized this untapped
market. He realized that many organizations and small startups need office space. However,
due to their low budget, they are unable to setup a proper working space for their
employees.
So, Adam Neuman introduced WeWork as a space where different people from different
professional background could work as per their requirement and feasibility.

Answer 2: WeWork has a variety of options for their potential customers. They provide long
term leases to short term leases. They have different packages for customers. The minimum
that a person can get is a hot desk. Whereas, the maximum is getting a complete office space
for multiple employees.

The business model of WeWork was their competitive advantage. WeWork did not only
facilitate in providing a work space to startups and established companies. But they also helped
people to explore new opportunities by cross marketing and co-working space. Most of the
companies were also able to meet their hiring target by approaching the potential candidates
working in WeWork as a freelancer.

Answer 3: When Wework decided to go public, their profit showed a negative figure which
painted a bad picture for all the investors. They faced a loss of value i.e. 70%.

However, to protect the company, a new CEO was hired. He brought a new vision and
strategies to gain back the trust of investors. This is how they proved that WeWork is still very
much alive and running.