Impact of First Lockdown on Co-working Spaces UK Market Size

This research project aims to investigate the impact of the first lockdown in UK on the co-working spaces UK market size in the first trimester of 2020. It focuses on WeWork and explores the importance of shared economy on co-working within United Kingdom. The research also evaluates the reaction of the top 3 leaders of the co-working space market to the new social regulations implemented during the pandemic. Additionally, it assesses the existing company structure of WeWork and its ability to adapt to the new market regulations.

Business and
Management
Table of Contents

Research Topic: An investigation to establish the impact of first lockdown in UK on the co -
working spaces UK market size in the first trimester of 2020. A research project on WeWork.....1
Chapter 1: Introduction....................................................................................................................1
Background to the study.........................................................................................................1
Problem statement..................................................................................................................1
Aim and objectives.................................................................................................................1
Rationale for selection of topic...............................................................................................2
Research questions.................................................................................................................2
Research Limitation................................................................................................................2
Chapter 2: Literature Review...........................................................................................................2
To investigate about the impact of the first lockdown in UK, in the first trimester of 2020, on
the co-working spaces UK market size..................................................................................2
To explore the importance of shared economy on co-working within United Kingdom.......3
To have a comparison between the top 3 leaders of coworking space market regarding the
reaction to the new social regulations implemented in order to fight against the pandemic
during the first trimester of 2020............................................................................................3
To evaluate about the existing company structure of WeWork along with assess its ability for
adapting to the new market regulations..................................................................................4
Chapter 3: Research methodology...................................................................................................4
Chapter 4: Findings and Results......................................................................................................7
Chapter 5: Conclusion and Recommendation................................................................................11
Conclusion............................................................................................................................11
Recommendation..................................................................................................................12
REFERENCES..............................................................................................................................12

Research Topic: An investigation to establish the impact of first lockdown in
UK on the co - working spaces UK market size in the first trimester of
2020. A research project on WeWork.
Chapter 1: Introduction
Background to the study
WeWork is a well known American commercial real estate company that is dealing in
providing flexible shared workspaces at global level for various enterprises working in the field
of technology start-ups and services providing (Adepoju, Oluwasina and Awah, 2020).
Problem statement
WeWork company is associated with designing and building virtual and physical shared
spaces and office services for different companies and entrepreneurs at a company place. Thus,
the recent global pandemic of COVID-19 that brings many new social pandemic regulations
regarding the workplace spacing and social distancing leads to many issues and changes for
WeWork company (Ardito and et. al., 2019). Thus, the problem statement of current research
project is based on analysis of the key impacts and changes lead out by new social pandemic
regulations on the expansion strategy and existing company structure of WeWork.
Aim and objectives
Aim
The aim of current investigation is, “To identifying the impact of the first Lockdown in
UK and the significance of shared economy over co-working ”. A research project on WeWork.
Research Objectives
 To investigate about the impact of the first lock down in UK, in the first trimester of
2020, on the co-working spaces UK market size
 To explore the importance of shared economy on co-working within United Kingdom.
 To have a comparison between the top 3 leaders of coworking space market regarding the
reaction to the new social regulations implemented in order to fight against the pandemic
during the first trimester of 2020.
 To evaluate about the existing company structure of WeWork along with assessing its
ability for adapting the new market regulations.
1

Rationale for selection of topic
The selection of current research topic is vital and rationale as it facilitates an improved
information about the impact of first lockdown in co-working industry thus, vital from view
point of associated firm. Apart from this, a better understanding about the shared form of
economy and ways to effectively react to new regulations implemented in order to fight against
the pandemic during the first trimester of 2020 is also provided that is vital and significant for
improved strategy formulation. Further, selection of current research topic is also rationale from
personal and educational view point of researcher as it lead to improved skills and knowledge.
Research questions
 What Possible impact of the first lockdown in UK, in the first trimester of 2020 is seen on
the co-working spaces UK market size?
 What importance is lead out by shared economy on co-working within United Kingdom?
 How the top 3 leaders of coworking space market had reacted to the new social
regulations implemented in order to fight against the pandemic during the first trimester
of 2020?
 How is the existing company structure of WeWork is changed due to the new social
regulations along with assess its ability for adapting to the new market regulations?
Research Limitation
The main limitation that would be faced while conducting and leading out current
investigation is related with lack of sufficient time and resources. Along with this meeting the
ethical consideration and maintaining the authenticity and viability of collected data is also a key
limitation that would be faced by researcher during current study.
Chapter 2: Literature Review
This section of research project comprises of analysis of secondary form of data that is vital
to set a framework and base for effectively leading out a study. Following literature review is
based on current research topic for which various online articles and journals are surveyed a
discussion and analysis of which is provided as below:
2

To investigate about the impact of the first lockdown in UK, in the first trimester of 2020, on the
co-working spaces UK market size
As per the view point of Irene Manzini Ceinar and Ilaria Mariotti, 2020, the current
pandemic of COVID-19 has changed and altered the way of working through leading a change in
attitude of government and citizens worldwide that is affecting all business sector. Now, it
become vital and essential for all organisation to respect and maintain the norms related with
social distancing with the view point to have control and minimize the chance of transmission of
virus. Thus, an analysis can be made out that an adverse impact of COVID -19 and lockdown is
seen on the co-working spaces UK market size during the first trimester the main reason behind
which is the fact that maximum number of employees has started adopting the traditional form of
working and work in the office to work at home through smart or remote working. Thus, a se
back is seen for the business of Co-working during the first trimester in UK. The co-working is
comprising a creative and innovative form of working where specific flexible short-term offers
make co-working spaces attractive where many interested persons comprises of permanent
employees, freelancers, etc opt to work in a more better and creative workplace along with the
travellers or incumbent firms that rent office or conference space (Cassell, Cunliffe and Grandy,
2017).
To explore the importance of shared economy on co-working within United Kingdom
As per the view point of Abdar, M. and Yen, N.Y., 2020, the concept of shared economy
is important and vital as it tend to make every day life more affordable and efficient by the way
of an extensive and well-distributed participation related with the supply side of the sharing
economy which tends to keep prices fair. Further, an analysis can be made out that shared
economy is also important and significant for the co-working within UK as it eliminates the need
for people to own all of their possessions and thus, provides a larger target customers for co-
working firms where a larger sum of candidates can work together on more flexible and
affordable manner (Cooper, 2020).
To have a comparison between the top 3 leaders of coworking space market regarding the
reaction to the new social regulations implemented in order to fight against the pandemic
during the first trimester of 2020.
The top three leaders of co-working comprises of WeWork, Innov8 and Red Bricks the
leaders of which has implemented many strategies to cope up with and maintain the balance with
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new social regulations implemented in order to fight against the pandemic during the first
trimester of 2020. According to the information provided by the Fiorentino, S., 2019, the main
points and emphasis of new regulations which was implemented to fight and control the current
pandemic of COVID-19 comprises of provisions of related with social distancing and
maintaining proper hygiene and sanitisation at workplace. Thus, the various steps were taken by
the leaders of co-working firms to control and avoid the risk of COVID-19 along with setting
balance with new social regulations implemented in order to fight against the pandemic during
the first trimester of 2020 comprises of effectively assessing the all possible people exposure and
risks in order to fulfil and meet all possible geographical risks, health and safety impact, globally
mobile employee implications, customer impact along with maintaining proper social distancing
and hygiene system at workplace (Fiorentino, 2019). Further, the another vital step that has been
taken by the co-worker leaders comprises of assembling all the comprehensive information
regarding all current globally mobile employees and travellers in transit so that extra care and
some better care can be provided to them at workplace to control the spread of COVID-19.
To evaluate about the existing company structure of WeWork along with assess its ability for
adapting to the new market regulations
With respect to the information provided by Kojo, I. and Nenonen, S., 2016.,it has been
analysed that the Coworking spaces and structure of a firm based on an arrangement in which
workers of different companies share an office space, allowing cost savings and convenience
through the use of common infrastructure. The existing company culture of WeWork comprises
of a combination of creative and useful equipment, utilities, and receptionist and custodial
services, and in some cases refreshments and parcel acceptance services to provide a most easy
and flexible set of working space for employees. But now, as because of COVID-19 and new
regulation set out to control spread of corona virus many new ability and changes are tend to
adapt by these firms which comprises of setting provisions for social distancing. Further,
effective training is also provided to workers to maintain proper hygiene and sanitisation at
workplace along with making new provision for providing flexible working arrangement after
proper medical checkups and set precaution (Kirchmer, 2017).
4

Chapter 3: Research methodology
This forms out to be the one of most important and vital section of any investigation that
provides information about the ways that research is indented to use to achieve the set objectives.
Use of research onion model has been made for current investigation to achieve set objectives in
a viable manner through facilitating proper reasons and justification of selection of applied
research method and approach.
Figure 1: Research onion, 2020
Research Philosophy- There are four common set and form of research philosophy
comprises of positivism, realism, interpretivism and pragmatism research philosophy. From
these philosophies, use of positivism is seemed for suitable for current investigation on WeWork
as it facilitates and leads to more systematic and practical way of study (Narayan, Phan and Liu,
2020).
Research approach- Deductive and inductive are two common form of research approach
from which utilisation of deductive approach is more appropriate for current investigation on
WeWork as it ensures support to positivistic philosophy along with ensuring a better testing and
scanning of numeric facts (Fiorentino, 2019).
Choices of method- From qualitative and quantitative nature of research method out of
which qualitative is associated with theoretical information and quantitative is linked with
numeric facts, utilisation of quantitative research method is seemed more justifiable. The reason
and justification behind making use of quantitative nature of research method for current study
on WeWork is based on the fact that it facilitates and ensures an easy and time efficient way of
data collection along with facilitating more effective and better presentation of facts through
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making use of graphs and charts for better analysis and interpretation of facts (Vom Brocke and
Mendling, 2018).
Data collection- With respect to current study on WeWork company use of both primary
and secondary sources of data would be made as primary data is vital to have authentic and first
had data collection where as secondary data is needed and required to provide base and
framework for study with the help of past facts (Cooper, 2020). Collection of primary data would
be made with the help of questionnaire as research tool while secondary data would be gathered
from the online modes of literature available in form of articles and journal.
Sample Size- With the help of random sampling method a sample size of 30 participants
have been selected for current investigation from the employees and management working at
WeWork company. Use of below stated questionnaire would be made for collection of data
from these selected 30 participants.
Questionnaire
Q1) Are you having any awareness about the implication lead out by current lockdowns
and other regulation taken in UK due to spread of COVID-19?
a) Yes
b) No
c) Neutral
Q2) As per your view point, What Possible impact of the first lockdown is seen on the co-
working spaces of UK market size during the first trimester of 2020 is seen?
a) Positive
b) Negative
c) No impact
Q3) How shared economy is important and plays a vital role in supporting Co-working
industry within United Kingdom?
a) Makes life more affordable
b) Well-distributed participation of employees
c) Support for working professions
d) Keep fair prices
Q4) What implication do you having regarding the reaction of leaders of co-working space
market to the new social regulations implemented in order to fight against the pandemic
6

during the first trimester of 2020?
a) Make changes in organisational structure
b) Improved workplace culture in accordance with new regulations
c) Neglected the provisions of new regulation
Q5) What possible changes are made by WeWork in its existing company structure due to
the new social regulations in order to enhance its ability for adapting to the new market
regulations?
a) Adapting provisions of social distancing
b) Maintaining proper hygiene and sanitisation
c) Improved workplace infrastructure
d) Conducting regular medical check-ups
Q6) Any further recommendation for WeWork to enhance its ability and performance by
the way of adapting to the new market regulations during the time of current global
pandemic?
Chapter 4: Findings and Results
The analysis of above research findings is made with the help of frequency table and pie
charts along with proper interpretation of results which is provided as follows:
Theme 1: Implication leads out by current lockdowns and other regulation taken in UK
Q1) Are you having any awareness about the implication lead out by
current lockdowns and other regulation taken in UK due to spread
of COVID-19?
Frequency
a) Yes 28
b) No 1
c) Neutral 1
7

a) Yes ; Frequency ;
28; 93%
b) No ; Frequency ; 1; 3%
c) Neutral ; Frequency ; 1; 3%
Frequency
a) Yes
b) No
c) Neutral
Interpretation
On the basis of above drawn pie chart an analysis can be made out that from a total of 30
participants, 28 seemed to have awareness about the implication lead out by current lockdowns
and other regulation taken in UK due to spread of COVID-19 where as one participant was
unaware about implication of COVID-10 along with one more individual who seemed to opt for
neutral implication on above written theme.
Theme 2: Possible impact of the first lockdown is seen on the co-working spaces of UK
market size during the first trimester of 2020 is seen
Q2) As per your view point, What Possible impact of the first
lockdown is seen on the co-working spaces of UK market size during
the first trimester of 2020 is seen?
Frequency
a) Positive 8
b) Negative 20
c) No impact 2
8

a) Positive ;
Frequency ; 8;
27%
b) Negative ;
Frequency ;
20; 67%
c) No impact ; Frequency ; 2;
7%
Frequency
a) Positive
b) Negative
c) No impact
Interpretation
One of the main finding and result of current investigation is depicted by above pie chart
which is reflecting that 8 participants were having a view point that positive impact is lead out by
first lockdown on the co-working spaces of UK market size during the first trimester of 2020 is
seen where as 20 respondents were in favour of its negative impact along with 2 other remaining
individuals who were supported for no impact of first lockdown on the co-working spaces of UK
market size during the first trimester of 2020 is seen.
Theme 3: Shared economy is important and plays a vital role in supporting Co-working
industry
Q3) How shared economy is important and plays a vital role in
supporting Co-working industry within United Kingdom?
Frequency
a) Makes life more affordable 8
b) Well-distributed participation of employees 7
c) Support for working professions 6
d) Keep fair prices 9
9

a) Makes life
more affordable;
Frequency ; 8;
27%
b) Well-
distributed
participation of
employees ;
Frequency ; 7;
23%
c) Support for
working
professions ;
Frequency ; 6;
20%
d) Keep fair
prices ;
Frequency ; 9;
30%
Frequency
a) Makes life more
affordable
b) Well-distributed
participation of employees
c) Support for working
professions
d) Keep fair prices
Interpretation
It has been analysed that shared economy is important and plays a vital role in supporting
Co-working industry within United Kingdom as it Makes life more affordable as per the thinking
of 8 participants where as 7 were in favour of Well-distributed participation of employees.
Beside this, 6 individuals tend to favour for Support for working professions along with 9 more
respondents who opted for Keep fair prices as importance and support of shared economy.
Theme 4: The reaction of leaders of co-working space market to the new social regulations
implemented in order to fight against the pandemic
Q4) What implication do you having regarding the reaction of
leaders of co-working space market to the new social regulations
implemented in order to fight against the pandemic during the first
trimester of 2020?
Frequency
a) Make changes in organisational structure 15
b) Improved workplace culture in accordance with new regulations 14
c) Neglected the provisions of new regulation 1
10

a) Make changes in
organisational
structure ; Frequency
; 15; 50%
b) Improved
workplace culture in
accordance with new
regulations ;
Frequency ; 14; 47%
c) Neglected the provisions
of new regulation ;
Frequency ; 1; 3%
Frequency
a) Make changes in
organisational structure
b) Improved workplace
culture in accordance with
new regulations
c) Neglected the provisions
of new regulation
Interpretation
The vital reaction of leaders of co-working space market to the new social regulations
implemented in order to fight against the pandemic comprises of Making changes in
organisational structure as per the view point of 15 participants where as 14 supported for
Improved workplace culture in accordance with new regulations while only one participant tend
to have the feeling of neglecting the provisions of new regulation by leaders of co-working space
market to the new social regulations.
Theme 5: Possible changes made by WeWork due to the new social regulations
Q5) What possible changes are made by WeWork in its existing
company structure due to the new social regulations in order to
enhance its ability for adapting to the new market regulations?
Frequency
a) Adapting provisions of social distancing 10
b) Maintaining proper hygiene and sanitisation 8
c) Improved workplace infrastructure 5
d) Conducting regular medical check-ups 7
11

a) Adapting
provisions of social
distancing ;
Frequency ; 10;
33%
b) Maintaining proper
hygiene and sanitisation;
Frequency ; 8; 27%
c) Improved
workplace
infrastructure ;
Frequency ; 5; 17%
d) Conducting
regular medical
check-ups ;
Frequency ; 7; 23%
Frequency
a) Adapting provisions of
social distancing
b) Maintaining proper
hygiene and sanitisation
c) Improved workplace
infrastructure
d) Conducting regular
medical check-ups
Interpretation
It has been find out that Adapting provisions of social distancing is a possible change that
could be made by WeWork in its existing company structure due enhance its ability for adapting
to the new market regulations as per the view point of 10 participants where as 8 opted for
Maintaining proper hygiene and sanitisation. Further, 5 respondents were also there who seemed
to be in support of improved workplace infrastructure where as 7 tends to opted for Conducting
regular medical check-ups for better implication of new social regulations by WeWork in order
to enhance its ability for adapting to the new market regulations.
Chapter 5: Conclusion and Recommendation
Conclusion
On the basis of current investigation, a conclusion can be made that many changes and
implication are lead out by current lockdowns and other regulation taken in UK due to spread of
COVID-19 within the co-working sector. Further, it has been analysed that a negative possible
impact of the first lockdown is seen on the co-working spaces of UK market size during the first
trimester of 2020 is seen due to strict provisions of lockdown that hampered the productivity
level of all sector of economy. Apart from this, it has been summarised that Makes life more
affordable, Well-distributed participation of employees, Support for working professions and
Keep fair prices accounts for the importance and support of shared economy for betterment of
co-working industry. At last, it has been find out that improved workplace culture in accordance
with new regulations and Make changes in organisational structure are the main reaction of
12

leaders of co-working space market to the new social regulations which are implemented in order
to fight against the pandemic during the first trimester of 2020.
Recommendation
On the basis of current investigation, it is recommended for WeWork to have and adopt
proper measures of social distancing and maintaining proper hygiene and sanitisation as it is
important and vital to control and keep a check on spared of COVOD-19. Further, an improved
set of infrastructure and well fitted equipments and utilities along with improved custodial
services is also recommended for WeWork to provide and facilitate best flexible set of working
space for employees during current time of global pandemic. At last, conducting regular medical
check-up of employees is also vital and recommended for WeWork to mitigate possible
geographical risks for globally mobile employee in order to enhance its ability for adapting to the
new market regulations.
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