WeWork Recommendation for Expansion in Europe
You will be required as a team to write up your analysis of the problems outlined in the assessment case, present possible options which the company should consider, and justify which of the options the company should pursue.
● Choose one case from the list of assessment cases provided.WEWORK
● Write up a report of no more than 4,500 words (excluding references).
● It is important that the assignment reflects the students’ own understanding of relevant literature. An effective integration of these materials to the discussion is also vital.
● Accordingly, at least 10 (ten) academic references MUST be cited along with other non-academic references such as articles from periodicals, newspapers and web pages.
● References are not included in the word count.
● Use the APA referencing style.
● Numberings, headings and sub-headings maybe used. There must be a logical flow of arguments from one section to another
● Use 12-point Times New Roman font, and 1.5 or double-spacing with 1-inch margins.
A report must have:
● Title page
● One-paragraph executive summary
● Introduction
● Main body
● Recommendations
● Conclusion
● References list
Challenges Minson & Gunningham face;
- Should WeWork curb international growth in favour of profits?
- How could WeWork increase the efficiency of their business?
- Should WeWork replicate their Asian Management - based contract rather than the leasing model on a global basis for faster profits?
Recommendations on Europe
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Recommendation on Europe
First, the company should retain its expansion into markets in Europe, such as London. WeWork is guaranteed access to a new client base and market to attract notable profits. In this regard, the company is exposed to reduced risks since the expansion offers growth opportunities in new markets and customer base, which can easily sustain the business in case one region, for example, China, fails. Since the company already understands customer needs, including the strong community approach, where people have lunch together, the expansion, especially in Europe, should be retained and will likely attract notable market competition against established companies, such as IWG Plc, which Agnihotri and Bhattacharya (2020) allude has a significant market share in Europe.
Specifically, WeWork’s future post-2019 should include business approaches that help it overcome its main issues that range from premature global expansion, overextended product diversification, and poor business model or corporate governance. Nearly 80% of the European market is controlled by IWG Plc (Agnihotri & Bhattacharya, 2020). Thus, WeWork needs to embrace strategic partnerships and alliances in its expansion. In this regard, the company can partner or form alliances with existing companies like the London-based co-working space providers, including the Office Group. The objective is to destabilize IWG Plc’s market leadership, which translates to a reasonable market share that limits losses, as witnessed in 2016 and 2017. As Mamédio et al. (2019) assert, strategic alliances and partnerships involve low risks, the investment cost reduces since the involved parties share costs, and the multinational can exploit the existing local firm’s market presence, and distribution channels, among other factors. In other words, WeWork prioritizing strategic alliances and partnerships with local firms will help overcome existing issues such as premature global ...