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A.CASE STUDY (20 Points)

Answer the following questions. You may write your answer in points. It is essential to use terminology that you have studied during the course.

WORKDEN, SUSTAINABLE CO-WORKING SPACES (Episode 2)

On December 10th, 2020 - Steven Regimbal, CEO & Co-Founder at Workden, spends every day trying to make his company the best co-working company in the world. Co-working is a business model that involves individuals working independently or collaboratively in shared office space. Co-working companies rent a location from a third party on a short-term or long-term basis, and then offer use of that location to customers for a fee. Co-Founded in 2018, Workden is a co-working organization.

There are two strong competitors in this space: WeWork and IWG. WeWork offers three main products to individual workers: a hot desk, a dedicated desk, and a private office. A hot desk is the least expensive option and provides the consumer the opportunity to take any available seat. A dedicated desk is the mid-tier option. It is more expensive than the hot desk, but the consumer has a seat reserved for them. The private office is the most expensive option, as it offers an enclosed space with a locked door for more privacy. IWG has the same business model as WeWork. When it comes to Workden, it does not simply rent out unused office space. Instead, it finds and curates productive workspace communities by partnering with local business owners who have unique spaces that are empty during the day. Workden sells to both individual customers and large organizations. Individual customers can select one of three options: a day pass, a 5-day bundle, or an unlimited monthly pass. Prices range from $9.99/day to $99.99/month. With each option, they have access to all spaces. These customers can use their passes at their own discretion. Large organizations can contact Workden directly for a more customized service offering. Workden will work on a specific solution for businesses regarding the number of seats, pricing, amenities, etc. The company is dealing with a large number of sellers and suppliers to ensure providing the best facilities and services and equip the working place with the latest state of the art technology, internet services, offices and equipment at the best possible prices.

In order for Workden to operate, they have an operation team composed of 15 members who are responsible for setting up the co-working spaces. This team includes a marketing team, a financial department, and a small HR department. Steven, the founder is a very interesting CEO. He is fond of sports and encourages his employees to adopt a healthy lifestyle. Within Workden, employees are encouraged by Steven to play a role in making important company decisions through extensive discussions and brainstorming. This is also fostered by the fact that a lot of them have deep knowledge about their field and the solutions that they come up with are in most of the times better than the ones Steven proposes.

Many organizations are facing significant challenges due to the Covid-19 pandemic. However, there is competitive market share available if Workden can take advantage of this opportunity. There are three major trends globally. First, teleworking and working remotely have become more prevalent since the start of the pandemic. According to Statistics Canada, nearly one-third (32.6%) of businesses reported 10% or more of their workforce was teleworking or working remotely on May 29, 2020. With the rise of technology, many countries increased the bandwidth of Internet packages, engaging in digital applications by individuals, governments and businesses to ensure continuity of business activities in light of social distancing. Moreover, customers, either individuals or large organizations, are now negotiating for less prices given the current worldwide conditions. Second, rising real estate costs make co-working options more appealing. For many freelancers or those starting a small business, leasing or purchasing office space can be a considerable expense. Third,

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the rise of globalization requires flexible working options. Companies are finding that paying companies like WeWork, IWG, or Workden is less expensive than opening multiple offices.

Steven was considering all these trends and was imagining the way forward Case Questions

1. In light of the case above, analyze the industry in which Workden is operating using Porters five forces Model? ( 5 Points)

2. Conduct SWOT analysis for Workden using evidence from the case. ( 5 Points) 3. According to Behavioral Theory of Leadership what type of leadership style does Steven have? ( 5 points)

4. What recommendation would you give to Steven? Should he go for expanding in other countries with the rise of globalization and the increasing real estate costs? Please indicate the corporate strategy corresponding to your choice? Justify your answers. ( 5 Points)