Executive Summary

Leadership is existed in the business to determine the success of the organization. Therefore,
the leadership is concern on the development of proper background to lead the people in the
way of achievement of the business objectives. Implementing the possible strategies to
achieve the business objectives and the way of setting up the company's goal and setting the
atmosphere and culture for that specific organization are key components of successful
leadership in commercial organizations. Organizing, providing resources, maintaining a look
out for and correcting mistakes are all facets of leadership. Leadership is about inspiring
others to collaborate and cooperate to achieve a common objective, often with the other
organizations as well. Considering all theses factors, it is identified that the effective and
sustainability of leadership is essential to achieve business productivity.

This report is concern on the critically evaluate the factors that create challenges to the
business that face by the WeWork and critically evaluate how the sustainable leadership
initiatives can influence to the business performance, resource management and enhance
business productivity. Finally, this assignment focus on the development of the both short
term and the long term recommendations to enhance productivity of the business.

The key finding of this analysis is shown as there are number of challengers that the business
is facing. Analysis of the potential rivals for WeWork is based on three factors: leadership
viewpoint, business capacity to protect stakeholder interests, and resource management
rivals. In this study, a potential remedy for enhancing corporate performance is identified. It
has been determined that the company should have the correct perspective on the
advancement of sustainability leadership and process improvement. Another strategy that
may be developed to enhance the business's resource usage is the potential for product
creation.

It is recommended to adoption of the sustainable business approach and the leadership. On

the other hand, the adoption to the agile project manage and project appraisal is
recommended in this study.
Contents
1.0 Introduction...............................................................................................................................3
2.0 Challengers that hinder the WeWorks productivity and resource management...............................4
2.1. Challengers in leadership............................................................................................................4
2.2. Challengers to Safeguard the Stakeholder interest......................................................................5
2.3. Challengers in Resource management........................................................................................6
3.0 Improve the Resource management in WeWork.............................................................................8
3.1. Sustainability in the leadership practices....................................................................................8
3.2. Process improvements..............................................................................................................10
3.3. Product Improvement...............................................................................................................11
4.0 Conclusion.....................................................................................................................................12
5.0 Recommendation...........................................................................................................................12
References...........................................................................................................................................14
1.0 Introduction

To ensure the achieve of the business objectives, sustainable leadership inside the business

enterprise is essential for the creation of organizational knowledge and organizational
performance metrics (Iqbal, Ahmad and Halim, 2020). The fundamental presumptions of
business and its objectives, substantial cooperative participation, and systematic thought are
all great interest to learner companies. Organizational learning is influenced by
environmental factors since it is a social activity. Learning and organizational is influenced
by management, systemic thinking, and clear understanding (Al-Zawahreh, Khasawneh and
Al-Jaradat, 2018). To improve learning and the resource management within the
business, leadership support is crucial.

WeWork is known as the US based company, which is provide the flexible shared space and
technology startups. Their business ability to connect the supply of office buildings to their
fundamental operating foundations of communities, style, and appropriate examination of
locations and individuals is responsible for their performance (WeWork, 2015). However, at
presents, the business is operated in 700+ locations. However, there are considerable number
of business failures which is ended up with the $9 billion. In term of the financials, the
accumulated loss is gradually increased and in 2022 the EBITDA for the WeWork is
remained as negative value of $400-$475 (WeWork.com, 2022). At the end of the year 2021,
the total revenue decline is 25%, compared to the year 2020 (Financial Times, 2021). It is
shown that, IPO is impacted with the failing revenue and the financial instability. Above
context of the WeWork current situation, it is highlighted that the there are several
challengers in the business performance, utilization of the business resources and cope with
the stakeholder interest in term of the determination of the success of the business.

This paper examines how sustainable leadership efforts may affect company performance,
resource management, and increase business efficiency. It also critically assesses the
elements that WeWork's business faces in terms of obstacles. Finally, this project focuses on
the creation of both short- and long-term recommendations to improve corporate
productivity.

In this assignment, it is analysis the challengers which is exist in respect to the WeWork how
the sustainable leadership can influence to determine the success of the WeWork and the
possible recommendations and the corrective actions that can be proposed to carry-out to
optimize the business performance of WeWork.

2.0 Challengers that hinder the WeWorks productivity and resource management

Challengers of the we work, that hinder the business performance of WeWork is identified in
this study.

2.1. Challengers in leadership

Leadership Shakeup within the WeWork is consider as the critical challenge for the business.
Gaduga, (2021) identified that the frequent leadership changes are not healthier for the
business environment. The business objectives of the organization are influenced by shifts in
senior leadership both directly and indirectly, either favorably or unfavorably. Changes in
senior leadership have an impact on corporate objectives in sectors like business development
and growth, human resource management, and operational or supportive supervision.

Almaraz, (1994) identified that challengers in the frequent leadership changes are having the
impact of establish proper background for the business operation. However, Vértesy, (2017)
identified that changes in senior leadership have a direct, tangential, beneficial, or adverse
influence on the firm's company goals. Company goals such as firm growth and expansion,
workforce management, and administrative support or operations are all impacted by changes
in senior leadership.

However, it is identified that the WeWork is having the critical leadership challenge impact.
Adam Neumann is known as the founder of the WeWork. Adam Neumann has been act as
the founder of the WeWord during the period of 2010-2019. Neumann was renowned for his
ability to convince skeptics to become followers who emotionally connected with him
(Adeigbo, 2019). Having charisma increases followers' drive to achieve lofty goals and their
unwavering faith in their ability to succeed.

However, after the Adam Neumann there is frequent changes in the leadership position in the
WeWork. The changes in the frequent changes in the leadership is influenced to have the
frequent changes in the company policies and the business approach.
On the other hand, the common argument related to the leadership approach is, it is found
that the leaders like Adam Neumann less concern on the business operational cost. His
business vision, charm, and brazen risk-taking enabled the business reach $2 billion in yearly
revenue and become the most desirable company in the country. However, at the end of the
2019, Adam Neumann shown the continuous delay in concern on the meet the break even
with the target achievement in sales.

The governance structure made it more difficult for the corporation to market its IPOs and led
to more problems. The main concern was that Neumann's shares had ten times as much
voting power, which raises a red signal for many public investors, especially when discussing
high values. A $3 billion stock offering and a $6 billion credit line were initially established.
Currently, there is just a $3 billion credit line and a significantly smaller equity raising, which
suggests a slower development trajectory than first thought. This could lead to greater
discussion about an economic expansion image which is more equal, which I believe would
be appreciated by most IPO investors.

2.2. Challengers to Safeguard the Stakeholder interest

A stakeholder is a person, institution, or agency whose interest are impacted by the

performance or failure of a project or business endeavor. Stakeholder might be inside or
outside the business financing the initiative, and they all have a vested stake in the team's
achievement (Matthews, 2004). Stakeholders are significant since their choices can either
positive or negative influence the project. There really are additional crucial or important
players, whose backing is necessary for the project to go ahead. According to the analysis of
the Tricker, (2005) it is identified that the key business stakeholders are having the
considerable impact on determination of the corporate governance of the business. Different
stakeholders in the WeWork are impacted with the current situation of the company. There
are different stakeholders are identified in relation to the WeWork.

Soft Bank is consider as the one of the key shareholder in the WeWork. It was revealed in
2022 that the $100 billion worth of Vision Fund of SoftBank had abandoned its original
strategy to invest $16 billion in WeWork. The aftermath of the transaction corresponded with
a drop in tech equities and economic uncertainty. WeWork received a $4.4 billion investment
from SoftBank as well as its sizable Vision Fund in 2017, and the business now has two
board positions. SoftBank has spent over $10 billion in the business after making a $2 billion
investment in 2019. In this regard, it is found that the overall interest of the Soft Bank is
conflicts with the company performance.

2.3. Challengers in Resource management

 A company's human resources circumstance than its financial performance—is one of the
best insightful indicators of how well it is performing. Workers are a firm's blood, and
employee happiness is a good sign of how healthy a business is. Employees are privy to
every aspect of how the business is run. When staff members start to leave, relevant
stakeholders must pay much attention because danger is coming. The financial stability
requirement and the business requirement to work for the business changes is creating
pressure to reduce cost.

WeWork experienced a poor management group. Poor project management techniques and
greater than anticipated disruptions in corporate objectives followed the judgment process.
Multiple times, Adam Newman's spending habits have been called into question. The
organization's leadership style and its fundamental organizational intent and principles have
been o ut of sync. Another unfavorable result was a lack of organizational culture. Adam
Neuman tried to disseminate the notion that WeWork values its members.
WeWork's continued cutbacks of thousands of employees had sent confusing impression to
potential existing and new employees; there would be serious concerns about security and
treatment for each WeWork Worker. On the other hand, the cost of hiring skilled employees
is rising, which has an impact on WeWork's money position.

From the perspective of operational management, the main challenge that the business is
having is impact on the cost and the variation of the cost. As a real estate company, business
is having the limited number of the products.

Innovation of the product is limited in the business. Before the new CEO, the main business
objectives with the high volume and the law variety product. However, the innovation
business objective the business set the different objectives of Speed and the reduction in the
business. The human resource department had the different objectives of reduce the labor
with the limited number of financial impacts.

Mujtaba and Senathip, (2020) identified that the business is having the direct impact over the
determination of the lay off strategy. The lay off decision should be carefully determined
with serious human resource impact. The finding of Mujtaba and Senathip, (2020) identified
that the lay off strategy is having the direct impact over the level of employee motivation and
the leadership effectiveness. Employee reduction or redundancies typically include the
deliberately planned removal of a sizable portion of the staff to enhance the organization's
efficiency and the prospects for the economy. Possible short-term or direct benefits of
shrinking include increasing revenues, averting insolvency, building new connections,
reorganizing, and going to get rid of "deadwood" or disgruntled staff. Reduced qualified
employees and poor leadership may be consequences of layoffs or downsizing in a business.
Employees could also feel conflicted, shocked, stressed, guilty, or even envious. In the
scenario of Wework, the decision of lay off and the results impacted to the overall operational
effectiveness of the business.

Knowledge management and saving the tactic knowledge is another issue. According to
reports, WeWork's unsecured wi-fi network was hacked, exposing private emails and data to
anybody using the same network without a VPN. WeWork's Wi-Fi security problem, which
was initially revealed by a Fast Business piece in August, came at an inopportune moment for
the company as it postponed its planned initial public offering on Tuesday due to widespread
concern about its worth. It also highlights one of the drawbacks of collaborative workplaces
and opening Wi-Fi network to the public. Since open networks in hotels, cafés, and airport
represent a security risk, people advise between using them. Public Wi-Fi has long been a
security worry. Yet when it comes to networking on co-working facilities like WeWork,
where thousands of companies pay for something and depend on the facility's services, which
include internet connection, the implications are greater.

The first feature mentioned on WeWork's website is "super-fast internet," yet security is not
addressed elsewhere. Even worse, WeWork's extensive network's Wi-Fi passwords is used
across many sites inside the company (Ng, 2021).

3.0 Improve the Resource management in WeWork

3.1. Sustainability in the leadership practices

Reducing expenses and raising potential revenue are two ways that responsible development
improves organizational effectiveness. As according Gerard et al. (2017), leaders effectively
continuously scan their surroundings to keep an eye on market developments and build long-
lasting relationships with both internal and external stakeholders. Internally, sustainability
leaders must create long-term visions, prioritize environmental efforts, identify sustainability
challenges, implement green management techniques, and promote both incremental and
revolutionary innovations (Avery & Bergsteiner, 2011).

When it concern on the Wework, building last long relationship with the identified resources
is critical. The influence of the business loss and short term focus to achieve short term
profits. On the other hand, different users are having the no believe over the leaders of the
business. Spreitzer (1995) defined psychological empowerment as a collection of mental
conditions that center on how people view their work, gain more experience, and level of
commitment to their organizations. Spreitzer (1995) claims that psychological empowerment
is a second-order concept having four dimensions, including self-determination, competency,
significance, and effect. The establishment of the sustainable business practices with the
WeWork is essential to develop the profitability business.

The capacity of social sustainability to draw talent with a mission is yet another significant
factor contributing to its rising popularity. It does not matter where in the globe; there is still
a dearth of talented individuals. People frequently select organizations that match their goals,
such as DEI and sustainability management and establishment of the relationship with the
sustainable leadership, since they have a wide range of options. According to a
Webwork survey, seven out of ten employees consider job opportunities considering a
company's commitment to environmental responsibility and sustainability. The younger
generation, who are even more concerned about ESG problems, is one group where this is
particularly true.

On the other hand, the business workforce is panic, and the visionary leadership is essential
to develop the employee trust. The business is experiencing the higher level of the work lay
off. The leadership needs to extend their support to reduce the phycological distraction and
redundancies which is related to the use of the sustainable leadership. On the other hand,
Companies are discovering that environmental strategies enhance financial value even as they
witness the short and long-term effects of climate human resource change. According to a
case study published in the Harvard Business Review, sustainability enhances financial
performance and boosts profitability throughout the value chain. Living sustainably enhances
the employee quality of life, safeguards the environment, and preserves the environment for
future generations. In the business sector, sustainable is linked to a firm's all-encompassing
strategy that considers it all from customer support to manufacturing and logistics. The
research finding of Iqbal, Ahmad and Halim, (2020) identified that the business leadership is
having the direct impact over the business performance. The recent statistics show that the
WeWork is having the business performance and the related impact because of the issues
with the leadership. The business leadership at WeWork is just concern on the short-term
profitability and the relationship that required to achive short term relationship with the
employees. The financial restriction in the Wework is creating pressure to reduce employees.

Hence, to avoid the business objectives within the business, it is known that the there is a
higher requirement to establish the sustainability in the employee relationships. Only,
sustainability leadership can establish such relationship with the employees. On the other
hand, the business leadership is required to have in the perspective of employee centered
rather than the less focus on the business operations and the profitability. It is identified that
the employees are the only resource within the business which is having the ability of think
and act at the same time. Hence, any business should concern on the development of the
sustainability leadership approach. From the perspective of WeWork, the business is having
the considerable number of business issues and their business operation.

The next concern on WeWork is frequent changes in both internal and the external
environment. There are different internal changes are happening. Due to the liability and the
business loss, the change in the leadership is exist and the human resource is frequently
having the issues such as lay-off and the job security. Schein (2015) identified that the
sustainability leadership will establish the higher employee, motivation and employee trust.
Most sustainability challenges are intricate and transnational in character. The term
"boundaries" can refer to a variety of things in this application, including different specialties,
industrial sectors, governmental levels, organizational units, cultures, geographical regions,
political domains, and demography.

Considering all the above, it is highly recombined to adopt the business sustainable
leadership to WeWork.

3.2. Process improvements

WeWork pays one fee to lease a facility from a landowner before paying more to lease it to
customers. Real estate acquisition costs differ depending on the sites WeWork utilizes; in
Baltimore or Nashville, for instance, they are lower than that in New York City. These
pricing differences assist in preventing WeWork's costs from rising too much. There are
different process improvements can be carried out within the WeWork.

Financial performance is one aspect that is required the business growth. WeWork, offers
flexible workspace and was once valued at $47 billion, has reported second profitable quarter
despite increased revenues and more interest. For the first quarter of 2021, the US group
reported a net loss of $504 million. The monthly revenues increased 28% year over year and
beyond the upper end of projections at $765 million, which is an increase over the $803
million lost during the preceding three months (Financial Times, 2022). The financial
performance is remained at the lower level. One of the main shareholders of WeWork is
thought to be Soft Bank. In 2022, it was made public that SoftBank's $100 billion.

Fund requirement had changed course from its initial plan to invest $16 billion in WeWork.
The transaction's aftermath was accompanied by a decline in tech stocks and increased
economic ambiguity. WeWork now has two directorships after receiving a $4.4 billion
investment from SoftBank in addition to its sizeable Vision Fund in 2017. After investing $2
billion in the company in 2019, SoftBank has invested over $10 billion in it. In this respect, it
is discovered that the Soft Bank's general interests contradict with the business's success.
Business is increasingly responded to the changes in the financial position. The liability level
of business is increasing, and this make the business lower level of the financial performance.
The proper finance analysis process is essential for the business.

Sandeep Mathrani, the company's chief executive who took over in 2019 after co-founder
Adam Neumann left, has trimmed expenses and predicted that the business will turn a profit
in 2022. This is a development that is advantageous to business. However, the firm's layoffs
of personnel lead to resentment and can have a negative impact on how well the business
performs. Therefore, the financial resources of the company organization should be
considered together with the business profitability. On the other hand, the human resource
should be concern as the most valuable business resource within the business.

In term of the project management, the business is having the considerable number of
scenarios, which causes business loss (Zeitlin, 2019). The first business failure of the
WeWork is consider as the failed IPO. The failed case of IPO leads the business to increase
the liabilities within the business and the Softbank to taken over the business. Since at least
2015, the business model of the firm had a reputation for being pricey and having a slender
road to profit. Nevertheless, Neumann's odd behavior had been a component of the
presentation from the outset. The addendum of accusation self-dealing and self-enrichment
by Neumann to the core model of lease agreement commercial properties, converting them in
to the "shared" office spaces, and then relying on a rotating cast of remote workers, venture-
funded startups, and some bigger companies to charge rents that could include short as a
month at a time just seems to start making this year's WeWork tales unique, and more
causing damage by changing the total business ownership. Business paid less attention to
cover the project appraisal. It is recommended to follow the agile method of project appraisal
rather than following the waterfall method. On the other hand, it is seeming that the business
is following less concentration on the business project based on the future cashflow. Some of
the wrong decision made by the Adam Neumann specially with regards to determine the
operating the business cost of the business is highly influential to have the business losses in
the long run. The implementation of scrum method and the agile project management is
highly recommended for the WeWork.

On the other hand, the project management methodologies within the business. The business
is highly dependent on the working from home environment. The company is one with the
client facing and the customers are reluctant make the purchasing decision, where they are
not even seen the employees of the business. Hence, the management of the human resources
of the company is needed to follow the hybrid type of work rather than the based on the
working from home settings.

3.3. Product Improvement

The product is traditional and the less innovative in the WeWork. The main cause of change
that is reflected in the business is the management of the WeWork is reluctant to move into
the newer and the product improvement methodologies.

Some of the possible movement in the final product of the WeWork is implementation of the
product that is highly concern on the automation. The AI based real estate product delivery,
or the use of the automotive methodologies to provide the solutions would be the possible
product innovation options available for the WeWork.

4.0 Conclusion

In conclusion, this report is concern on the development of the analysis of the business case
of the WeWork. WeWork is known as the US based company, which is provide the flexible
shared space and technology startups. Their business ability to connect the supply of office
buildings to their fundamental operating foundations of communities, style, and appropriate
examination of locations and individuals is responsible for their performance. There are
several business failures are identified in relation to the WeWork.

In the first part of the analysis, it is concern on the possible challengers that the business is
facing due to the changes in the business process of WeWork. The possible challengers in
respect to the WeWork is analysis based on the leadership perspective, the business ability to
safeguard the stakeholder interest and the resource management challengers.

The possible solution for the improvement of the business performance is identified in this
report. It is found that the business should have the proper view of development of the
sustainability leadership and the process improvement. The possibility of the product
development is another approach that can be developed to improve the resource utilization of
the business.

5.0 Recommendation
Based on the above analysis, there are key failures, and the challengers are identified in
respect to the business operation of WeWork. This paper examines how sustainable
leadership efforts may affect company performance, resource management, and increase
business efficiency. It also critically assesses the elements that WeWork's business faces in
terms of obstacles. Finally, this project focuses on the creation of both short- and long-term
recommendations to improve corporate productivity.

Based on these objectives, it is possible to make following recommendation.

Recommendation 01

The establishment of the sustainable business leadership, which concern on the proper
balance in the operational and the human resource management perspective of the business.
Current business leadership is concern only on the process improvement and the profitability
and this will be possible to cause the demotivation of the employees within the business. for
any organization, human resource management is considered as the heart of the business and
even with the service organization this is same.

Recommendation 02

The next recommendation can be done with respect to the process improvement with the
project appraisal. Business is currently depending on the waterfall method of project
management and due to this reason business is facing the number of issues. It is highly
recommended to follow the agile method of project management and the frequent project
appraisal.
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