We Work Articles: WeWork Accused of Mishandling Sexual Assault Reports Amid ‘Frat-Boy Culture’ (Oct. 12) -This article explains how the culture and tone for WeWork can and has fostered a dangerous workplace for individuals who are accusing the company of sexual harassment and assault complaints and what this means for the company. (Fortune) WeWork Investors Turned Off by 'Sloppy' IPO Filings (Oct. 7) -This article explains how the parent company of WeWork, We Co. misstated financials and omitted information about the company’s governance which was shown throughout their IPO filings which ultimately upset investors involved with WeWork. (Wall Street Journal) Chastened WeWork Weighs Pullback in China (Oct. 1) -This article examines challenges that WeWork is confronted with, especially their pressure and struggle to make money. Other challenges include lower-priced competition and the Chinese economy slowing down. (Wall Street Journal) WeWork Still Needs Cash After Pulling IPO (Sept. 30) -In effort to combat their cash burn out, WeWork will be selling extraneous buildings, laying off employees, and other luxuries the former CEO had previously purchased. This article examines how this could effect WeWork’s growth rate, which is expected to decrease after these changes. (Wall Street Journal) WeWork's Adam Neumann Steps Down as CEO (Sept. 24) -This article explains why Adam Neumann resigned and relinquished his control of WeWork after they lost backing from SoftBank which owns a third of their company. (Wall Street Journal) Scott Galloway: "We work is arguably the most overvalued company in the world"(May 15) -This article provides an educated opinion on WeWork’s valuation and why it is believed to be overvalued. (Business Insider) Videos: SoftBank to Boost Stake in WeWork in Deal That Cuts Most Ties With Neumann -This video goes into detail about the company’s “risky business model” after they failed to present an IPO to investors and why the CEO, Adam Neumann stepped down. (Wall Street Journal) Management expert weighs in on whether WeWork -This video is a discussion with Jeff Sonnenfield, a senior associate dean for leadership studies at the Yale School of Management who comments on SoftBank since they are urging to shelve WeWork initial IPO. (CNBC Television) Formaldehyde Debacle -This video explains the health issue that WeWork has been confronted with in their phone booth stations and what this means for the WeWork company. (CNBC Television) WeWork services store video -This video explains the new store that WeWork created to give their members more freedom. This store known as the “WeWork Services Store” is supposed to offer a business services for the more sophisticated user of WeWork. (WeWork) Long beach WeWork office tour -This video offers a tour and visualization of one of WeWork’s locations in Long Beach, California. (HeatherJustCreate) [STUDENT NAME] [Date] BUSINESS FOUNDATIONS (ENT101 Section [Letter]) BSAM Analysis Part II: The We Company List the ONE primary problem you are going to focus on solving and why you have chosen it. What research have you done around this problem? Include source & key takeaways. Explain Best Alternatives and How They Will Help “Solve” the Singular Primary Problem Above: Alternative #1: • What research supports this idea? (Must have at least one external resource.) • How much will it cost short & long-term? (Make educated assumptions about cost! AKA guesses based in fact) • What are the benefits (the positives) of this idea? 1 Updated 11/18/2019 [STUDENT NAME] [Date] BUSINESS FOUNDATIONS (ENT101 Section [Letter]) Alternative #2: • What research supports this idea? (Must have at least one external resource.) • How much will it cost short & long-term? (Make educated assumptions about cost! AKA guesses based in fact) • What are the benefits (the positives) of this idea? Alternative #3: • What research supports this idea? (Must have at least one external resource.) • How much will it cost short & long-term? (Make educated assumptions about cost! AKA guesses based in fact) • What are the benefits (the positives) of this idea? 2 Updated 11/18/2019 [STUDENT NAME] [Date] BUSINESS FOUNDATIONS (ENT101 Section [Letter]) SWOT Analysis: The We Company Strengths 1. 2. 3. 4. 5. Weaknesses 1. 2. 3. 4. 5. Opportunities 1. 2. 3. 4. 5. Threats 1. 2. 3. 4. 5. 1 Updated 11/18/2019 [STUDENT NAME] [Date] BUSINESS FOUNDATIONS (ENT101 Section [Letter]) BSAM OUTLINE: The We Company Where is the firm located? Who are the Stakeholders? (Group them into categories and list them all on the same line by category): • • • • • What Industry does firm compete in? What is the Target Market and Market Segments of the firm?: Who is the Competition? (Group them into categories and list them all on the same line by category): • • • • • 2 Updated 11/18/2019 [STUDENT NAME] [Date] BUSINESS FOUNDATIONS (ENT101 Section [Letter]) List ALL of the problems you can think of and their causes: PROBLEM CAUSE List the ONE primary problem you are going to focus on solving and why you have chosen it. 3 Updated 11/18/2019 Income Statement Annual USD Revenue Revenue growth, % Expenses: Location operating expenses Other operating expenses Pre-opening location expenses Sales and marketing expense R&D expense General and administrative expense Depreciation and amortization Operating expense total Loss from Operations EBIT margin, % Interest expense and other income expense Pre tax profit Income tax expense Net Income Net loss attributable to noncontrolling interests FY, 2017 436.1m 886.0m 1.8b 103% 106% Revenue Revenue growth, % 433.2m 814.8m 1.7m 131.3m 143.4m 109.7m 454.0m 162.9m 1.8b 1.5b 106.8m 357.8m 378.7m 477.3m 357.5m 313.5m 3.5b Other operating expenses Pre-opening location expenses Sales and marketing expense R&D expense General and administrative expense Depreciation and amortization Operating expense total (931.8m) -105% (7.4m) (939.2m) (5.7m) (933.5m) 49.5m (1.7b) -93% (237.3m) (1.9b) (850.0k) (1.9b) 316.6m 115.7m 43.4m 35.7m 115.3m 89.0m 832.4m (396.3m) -91% (33.4m) (429.7m) 16.0k (429.7m) FY, 2018 Quarterly USD FY, 2016 Loss from operations EBIT margin, % Interest expense and other income expense Pre tax profit Income tax expense Net Income Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018 Q2, 2018 Q3, 2018 Q4, 2018 Q1, 2019 Q2, 2019 163.0m 198.3m 241.1m 283.3m 342.2m 421.6m 482.3m 575.7m 728.3m 807.1m 65% 23.7m 19.5m 46.0m 38.0m 337.6m 41.2m 26.9m 52.7m 42.2m 404.9m 59.8m 46.1m 318.8m 51.5m 790.8m 62.8m 58.7m 78.2m 62.0m 638.3m 77.1m 115.4m 77.1m 75.4m 803.4m 109.6m 118.5m 90.7m 77.6m 930.6m 129.3m 184.7m 111.5m 98.5m 1.1b 151.0m 141.8m 218.5m 124.9m 1.4b 169.0m 227.9m 171.4m 131.1m 1.5b (139.2m) (163.7m) (507.5m) (296.1m) (381.7m) (448.3m) (564.8m) (639.7m) (729.7m) -70% -68% -179% -87% -91% -93% -98% -88% -90% (33.7m) (167.7m) (617.1m) (276.7m) (447.6m) (497.2m) (706.8m) (261.6m) (638.0m) (5.7m) (2.2m) 819.0k 97.0k 426.0k 5.0m 87.0k (33.7m) (167.7m) (611.4m) (274.5m) (448.4m) (497.3m) Balance Sheet Annual USD Assets Cash Accounts Receivable Current Assets PP&E Goodwill Total Assets FY, 2016 FY, 2017 FY, 2018 Quarterly USD 506.6m 18.0m 621.4m 1.5b 5.3m 2.2b 2.0b 35.6m 2.4b 2.3b 156.1m 5.4b 1.7b 99.5m 2.5b 4.4b 681.0m 8.6b Cash Accounts Receivable Current Assets PP&E Goodwill Total Assets 2.5b 181.0m 3.0b 6.7b 862.9m 27.0b Liabilities Accounts Payable Current Liabilities 190.3m 295.2m 314.3m 612.4m 826.4m 1.6b Accounts Payable Current Liabilities 1.3b 2.6b Short-term debt Long-term debt Total Debt Total Liabilities 52.1m 52.1m 1.3b 27.7m 50.8m 78.5m 2.4b 2.0m 799.6m 801.6m 6.3b Short-term debt Long-term debt Total Debt Total Liabilities 535.9m 19.3b 19.8b 24.6b Equity Common Stock Preferred Stock Additional Paid-in Capital Retained Earnings Total Equity 159.0k 1.7b 86.8m (816.5m) 956.7m 162.0k 3.4b 407.8m (1.7b) 3.0b 165.0k 3.5b 798.0m (3.3b) 1.0b Common Stock 170.0k Preferred Stock 3.6b Additional Paid-in Capital 1.4b Retained Earnings (4.0b) Total Equity 1.3b Debt to Equity Ratio Debt to Assets Ratio Financial Leverage 0.1 x 0x 2.3 x 0x 0x 1.8 x 0.8 x 0.1 x 8.3 x Debt to Equity Ratio Debt to Assets Ratio Financial Leverage Q2, 2019 15.3 x 0.7 x 20.9 x Cash Flow Statement Annual USD FY, 2016 FY, 2017 FY, 2018 Net Income Interest expense and other income expense Depreciation and Amortization Accounts Receivable Accounts Payable Cash From Operating Activities (429.7m) 33.4m 89.0m (13.9m) 12.9m 176.9m (933.5m) 7.4m 162.9m (22.1m) 96.4m 244.0m Purchases of PP&E Cash From Investing Activities Quarterly USD Q2, 2019 (1.9b) 237.3m 313.5m (69.4m) 147.6m (176.7m) Net Income (904.7m) Depreciation and Amortization Accounts Receivable Accounts Payable Cash From Operating Activities 255.9m (83.3m) 112.5m (198.7m) (776.1m) (1.0b) (818.5m) (1.4b) (2.1b) (2.5b) Purchases of PP&E Cash From Investing Activities (1.3b) (2.4b) Short-term Borrowings Long-term Borrowings Cash From Financing Activities (1.1m) (1.3m) 727.9m (1.3m) (3.6m) 2.7b (1.9m) (23.2m) 2.7b Short-term Borrowings Long-term Borrowings Cash From Financing Activities (1.6m) (1.3m) 3.4b Effects of Exchange Rate Changes Net Change in Cash (2.3m) 84.0m 1.6b (7.2m) Net Change in Cash 884.7m Operating Mechanics WeWork's Backlog was reported to be $3.3b in Q2, 2019. FY, 2010 FY, 2012 Members Locations Countries Active Cities Annual Run Rate Average Annual Revenue per Subscriber Backlog Desks For Rent Office and Retail Space, square feet Total Workstations FY, 2014 FY, 2015 FY, 2016 40 k 52 87 k 111 450 2 4k 7 15 m 23 1 3 8 34 600 m May, 2017 Jul, 2017 Sep, 2017 Dec, 2017 175 k 140 14 44 155 15 50 164 17 7.17 k $100 m 107 k FY, 2017 Feb, 2018 Mar, 2018 Apr, 2018 Q2, 2018 FY, 2018 Mar, 2019 Q1, 2019 Q2, 2019 186 k 200 k 200 401 k 425 27 100 220 k 230 21 71 234 1.10 b 268 k 287 401 k 425 1.80 b 100 2.40 b 466 k 527 k 528 111 3.30 b 6.34k $500 m $2.60 b 251 k 14 m 214 k 301 k 466 k $3.30 b FINANCIALS OF WEWORK Retrieved from: Craft.co/wework FUNDING ROUNDS + VALUATION Retrieved from: Craft.co/wework Retrieved from: Craft.co/wework FUNDING ROUNDS Retrieved from: Craft.co/wework ANNUAL REVENUE Retrieved from: Craft.co/wework QUARTERLY REVENUE Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 Q1, 2018 Q2, 2018 Q3, 2018 Q4, 2018 Q1, 2019 Q2, 2019 Retrieved from: Craft.co/wework $163 m $198.34 m $241.13 m $283.32 m $342.16 m $421.61 m $482.29 m $575.69 m $728.34 m $807.08 m GROWTH RATE 105.61% 103.17% Retrieved from: Craft.co/wework REVENUE BREAKDOWN (2016) Retrieved from: Craft.co/wework REVENUE BREAKDOWN (2017) Retrieved from: Craft.co/wework REVENUE BREAKDOWN (2018) Retrieved from: Craft.co/wework Quarterly Sales + Net Losses Retrieved from: Craft.co/wework WEWORK RATIOS Retrieved from: Craft.co/wework OPERATING MECHANICS Retrieved from: Craft.co/wework RATINGS Retrieved from: Craft.co/wework END 
Purchase answer to see full attachment