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

Research
Table of Contents

Topic: TOPIC: An investigation to establish the impact of the first lockdown (first trimester of
2020) on the co - working spaces in the UK market. A research project on WeWork....................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1. Overview of the study.....................................................................................................1
1.2. Background of the company............................................................................................1
1.3. Problem statement...........................................................................................................2
1.4. Aim and objectives..........................................................................................................2
1.5. Rationale for selection of topic........................................................................................3
1.6. Research questions..........................................................................................................3
1.7. Scope and limitation........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1. To investigate the financial impact on the WeWork profits in the first trimester of 2020.
................................................................................................................................................4
2.2. To investigate the timeframe of the changes in the expansion strategy of WeWork (UK
market and internationally).....................................................................................................6
2.3. To investigate the viability of UK branch of WeWork considering the key impact and
changes led by the pandemic..................................................................................................9
CHAPTER 3: METHODOLOGY.................................................................................................11
CHAPTER 4: ANALYSES...........................................................................................................14
CHAPTER 5: CONCLUSION......................................................................................................19
REFERENCES..............................................................................................................................21

Topic: TOPIC: An investigation to establish the impact of the first lockdown
(first trimester of 2020) on the co - working spaces in the UK market. A
research project on WeWork.
CHAPTER 1: INTRODUCTION
1.1. Overview of the study
Covid-19 is the global pandemic caused by spread of coronavirus across the various parts
of world which has led to dramatic loss of human life and created unexpected challenge for
public health. WHO first learns about this new virus on 31 December 2019 which was generated
first in Wuhan city of China (Dang and Trinh, 2020). This coronavirus is very indigenous to
health and spreading out with a rapid speed causing issues of respiratory failure along with acute
respiratory distress syndrome (ARDS), sepsis and septic shock, thromboembolism, and/or
multiorgan failure, including injury of the heart, liver or kidneys. In the first trimester of 2020 no
vaccine or cure for Covid-19 was developed by WHO or any other health organisation thus, the
only way to control the spread of COVID-19 is implementing sudden lockdown and maintain
social distancing at all places. Due to the spread of COVID-19 pandemic many precautions in
form of curfews, quarantines, and similar restrictions which are described as stay-at-home orders
or as lockdowns have been rapidly implemented in the numerous countries as well as various
territories and international boards around the world (Jones and Keynes, 2020)). By the starting
of 2020 till march month of 2020, about half of the world's population was under lockdown
which directly affected more than 3.9 billion people of more than 90 countries or territories who
have been asked or strictly ordered to stay back at their home by their governments to prevent
the direct connect of people in order to control spread of COVID-19.
1.2. Background of the company
The current investigation is lead out on WeWork company which is a well-known
American commercial real estate company that is dealing in providing flexible shared
workspaces for the technology start-ups as well as for services for other enterprise. WeWork
company is thus, associated with designing and building physical and virtual shred work spaces
and office services for companies and entrepreneur. WeWork company was founded during the
year of 2010 and having its main Headquarter in New York city, U.S. WeWork is a simply an
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office leasing company which is making money by renting out office space to employees of
other companies and support technology start-ups which is revolutionizing the way people and
companies are used to work (Nightingale, 2020). WeWork provides a more positive and
comfortable flexible workspace for individual employees along with all associated agile services
and leading technology to supports and move business work in more effective manner. WeWork
is providing the services of shared co-working workspaces and associated business office
services in more than 77 cities of world across the 23 countries worldwide comprises of many
locations of U.S, UK, Asia and others including China, Japan, Spain, London, etc. WeWork
company is continuously growing and improved business culture has supported its efficient
expansion and growth but the recent pandemic of COVID-19 has created many obstacles and
threats for its expansion and growth strategy through leading culture of staying home
(Senthilkumar, Reddy and Subramaniam, 2020). Thus, current investigation has been undertaken
on WeWork Company to analyse about the impact of the first lockdown (first trimester of 2020)
on the co - working spaces in the UK market.
1.3. Problem statement
The recent global pandemic of COVID-19, brought on board many new regulations
regarding the work place spaces and social distancing leading to changes for WeWork company.
The current research project is analysing the problem related with the key impacts and changes
lead on by the regulations on the expansion strategy and the company’s structure.
1.4. Aim and objectives
Research aim
The aim of current study (investigation) is to identify the key impacts and changes of the
first lockdown on the co-working spaces of WeWork.
Research objectives:
The main research objectives which are analysed by conducting current investigation on
WeWork company are listed and provided as below:
• To investigate the financial impact on the WeWork profits in the first trimester of
2020.
• To investigate the timeframe of the changes in the expansion strategy of WeWork
(UK market and internationally).
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• To investigate the viability of UK branch of WeWork considering the key impact and
changes led by the pandemic.
1.5. Rationale for selection of topic
The selection of current research topic is having utmost importance as the current scenario
of Covid-19 has brought significant changes and modification in the business operations and life
style of people. Selection of current research topic based on the impact of the first lockdown
(first trimester of 2020) on the co - working spaces in the UK market is rationale as it facilitates
better understanding about the issues and changes brought in my Covid-19 pandemic. Apart from
this, selection of current topic also meets personal interest of researcher along with supporting
improved academic and educational performance. Apart from this, choice of current research
project is also vital and significant as it support improvement in managerial skills and other
personal and professional competencies of researcher to have improved future growth and higher
opportunity.
1.6. Research questions
• What are the possible financial impact on the WeWork profits in the first trimester of
2020?
• What the timeframe of the changes are seen in the expansion strategy of WeWork
(UK market and internationally)?
• How the viability of UK branch of WeWork is affected considering the key impact
and changes led by the pandemic?
1.7. Scope and limitation
The current investigation is having a wide scope as it facilitates effective understanding
about the possible financial impact of Covid-19 on the profits of a firm in the first trimester of
2020 which provide better implication about the issues and challenges brought in by COVID-19.
Beside this, an effective timeframe of the changes which are seen in the expansion strategy due
to Covid-19 are also provided along with analysing the viability of a company in consideration
with the key impact and changes led by the pandemic. Thus, the current investigation is having a
wide scope as it facilities detailed information about the impact and changes lead out by the
Covid-19 which support improved validity and better mitigation of these challenges and issues in
Future.
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The main limitation and barrier which is associated with leading out current investigation
is related with maintaining the efficiency and effectiveness of the current project. Conducting a
research comprises of many task and activities like collection of data, analysis of data and many
more which are quite time consuming thus, implication of only secondary form of data has been
made within current study to maintain the efficiency level of work. But use of secondary form of
data limits the scope of investigation as only a limited amount of information is reviewed due to
lack of sufficient time and internal resources. Beside this, ensuring collection of authentic and
most appropriate form of data is also a possible limitation and challenge faced while undertaking
current investigation.
CHAPTER 2: LITERATURE REVIEW
This section of dissertation and research project is associated with review and analysis of
secondary form of data which is viable in form of past articles and documents (Chung, Xu and
Zhang, 2020). Thus, literature review forms out a vital part of every research project which
facilitates a base and framework for conducting out an investigation in more viable and effective
manner through facilitating improved information and understanding about specific research
topic. The current literature review is based on the topic of impact of the first lockdown (first
trimester of 2020) on the co - working spaces in the UK market for which a several of online
article and journals are reviewed a discussion of which is provided as below:
2.1. To investigate the financial impact on the WeWork profits in the first trimester of 2020.
As per the view point of Terry Stancheva. 2021, it has been analysed that most severe
impact of Covid-19 is seen during the first trimester of 2020 when almost half of the world is
under lockdowns and no commercial activity is taking place. Thus, it is obvious that a negative
financial impact is seen on WeWork profits in the first trimester of 2020. The WeWork company
has planned out to make over $7 billion in revenue by 2024 but the recent threat of Covid-19 has
made it difficult to have stable profit and survive in a constant manner. Till the December 2018
and during the year of 2019 WeWork was weeks away and never through of running out of cash
and having a good financial position and within in less that a year in 2019 the valuation of
WeWork company has been rose to a high level of $47 billion in January 2019 but after the
pandemic hots the valuation and financial performance of WeWork get dropped to $2.9 billion in
March 2020 during the first trimester at the time of situation of Covid-19 and global lockdowns.
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