The rise and fall of WeWork and its founder, Adam Neumann, is a story that resembles a modern-day parable. Neumann’s larger-than-life persona and grand ambitions led the company to great heights, only to come crashing down in a spectacular fashion. WeWork’s concept of providing flexible workspaces was not entirely new, but it struck a chord in the aftermath of the financial crisis, when commercial premises were abundant, and mobile technology enabled remote work.
Neumann’s charismatic leadership and unconventional approach, including offering free beer and creating a work environment that blurred the lines between professional and personal life, attracted a young and dynamic workforce. With substantial investments from prominent backers, WeWork rapidly expanded globally, but its financial losses were substantial, and questions arose about its valuation as a technology company. The company’s attempt to go public in 2019 revealed deeper financial issues, leading to a significant decline in its value and Neumann’s resignation as CEO.
Despite WeWork’s downfall, Neumann managed to disentangle his personal finances from the company, walking away with a substantial sum. He has since moved on to invest in other ventures and secured backing from a major venture capital firm. The cautionary tale of WeWork and Neumann serves as a reminder of the perils of unchecked ambition and the dangers of overvaluing a company based on speculative potential rather than sound financial fundamentals.
In the end, WeWork’s rapid rise and fall exemplify the risks of chasing unsustainable growth and overreliance on investor enthusiasm. The company’s story underscores the importance of prudent financial management and a realistic assessment of a business’s value, rather than succumbing to the allure of rapid expansion and inflated valuations. Neumann’s journey serves as a cautionary tale for entrepreneurs and investors alike, highlighting the need for a balanced approach to business growth and financial sustainability.
Original news source: How WeWork’s founder flew too close to the Sun (BBC)
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Group or Classroom Activities
Warm-up Activities:
– Headline Creation
Instructions: Divide students into small groups and ask each group to create a compelling newspaper headline that could accompany the article about WeWork and Adam Neumann. Encourage them to capture the essence of the story in a short and catchy way. Afterward, each group presents their headline, and the class votes on which one they think is the most effective.
– Speed Summarizing
Instructions: Pair students and challenge them to summarize the article in just 60 seconds to their partner. After one student has finished, the other student takes a turn. This will help them focus on the main points of the story and practice concise speaking.
– Opinion Spectrum
Instructions: Create a line in the classroom that represents a spectrum of opinions from “strongly agree” to “strongly disagree.” Read out statements related to themes in the article, such as “Rapid growth in business is always a positive sign” or “Charismatic leadership is more important than sound financial management.” Have students place themselves along the spectrum according to their opinion and discuss their reasoning with the nearest classmate.
– Synonym Challenge
Instructions: Write down several key terms from the article (e.g., ambitious, downfall, valuation, sustainable, speculative). Students work in pairs or small groups to come up with as many synonyms as possible for each word within a set time limit. This helps to expand their vocabulary and understand the nuances of language.
– Future Predictions
Instructions: Ask students to imagine they are financial analysts or venture capitalists five years in the future. Based on the events in the article, have them write a short prediction about the coworking industry, Adam Neumann, or WeWork. Students can share their predictions with the class, and discuss the likelihood and potential impact of these predictions coming true.
Comprehension Questions:
1. What was the core concept behind WeWork’s business model?
2. How did Adam Neumann’s leadership style contribute to WeWork’s initial success?
3. What attracted young and dynamic workers to join WeWork?
4. Why did questions arise about WeWork’s valuation as a technology company?
5. What were the consequences of WeWork’s attempt to go public in 2019?
6. How did Adam Neumann manage his personal finances in relation to WeWork’s downfall?
7. What has Adam Neumann been doing since his resignation from WeWork?
8. What does the story of WeWork and Adam Neumann highlight about the importance of financial management in business?
Go to answers ⇩
Listen and Fill in the Gaps:
The rise and fall of WeWork and its founder, Adam Neumann, is a story that resembles a modern-day parable. Neumann’s larger-than-life persona and grand ambitions led the company to great heights, only to come crashing down in a spectacular fashion. WeWork’s (1)______ of (2)______ flexible workspaces was not entirely new, but it (3)______ a chord in the aftermath of the financial crisis, when commercial premises were abundant, and mobile technology (4)______ remote work.
Neumann’s charismatic leadership and unconventional approach, including (5)______ free beer and creating a work environment that blurred the lines between professional and personal life, attracted a young and dynamic workforce. With substantial investments from prominent backers, WeWork rapidly (6)______ globally, but its financial losses were substantial, and questions arose about its valuation as a (7)______ company. The company’s attempt to go public in 2019 (8)______ deeper financial issues, leading to a significant decline in its value and Neumann’s resignation as CEO.
Despite WeWork’s downfall, Neumann managed to disentangle his personal finances from the company, walking away with a substantial sum. He has since moved on to (9)______ in other ventures and secured backing from a major venture capital firm. The cautionary tale of WeWork and Neumann serves as a reminder of the perils of unchecked (10)______ and the dangers of overvaluing a company based on (11)______ potential rather than sound financial (12)______.
In the end, WeWork’s rapid rise and fall exemplify the risks of chasing unsustainable growth and overreliance on (13)______ enthusiasm. The company’s story underscores the importance of prudent (14)______ management and a realistic assessment of a (15)______’s (16)______, rather than succumbing to the allure of rapid expansion and inflated valuations. Neumann’s journey serves as a cautionary tale for entrepreneurs and investors alike, highlighting the need for a balanced approach to business growth and financial sustainability.
Go to answers ⇩
Discussion Questions:
Students can ask a partner these questions, or discuss them as a group.
1. What is your definition of a “modern-day parable” and do you think the story of WeWork fits this description? Why or why not?
2. How would you feel if you worked for a company that provided perks like free beer and a blurred line between professional and personal life?
3. Do you like the idea of flexible workspaces? Why or why not?
4. Do you think charismatic leadership is more important than sound financial management in a company’s success? Why or why not?
5. What is your opinion on the role of investor enthusiasm in a startup’s growth? Is it always beneficial?
6. Have you ever worked in a startup environment similar to WeWork’s? If so, what was your experience like?
7. How do you think a company should balance rapid expansion with financial sustainability?
8. Do you think it’s ethical for a CEO to disentangle their personal finances from their company and walk away with a substantial sum after the company’s downfall? Why or why not?
9. What is your opinion on the importance of a realistic business valuation?
10. Do you think the concept of “overvalued” companies is a problem in today’s business world? Why or why not?
11. Have you ever been attracted to work for a company because of its culture or perks? What drew you to it?
12. How do you feel about the trend of companies promoting a blend of personal and professional life within the workplace?
13. Do you think there’s a risk in businesses branding themselves as technology companies for better valuations, even when their core service is not tech-based?
14. What qualities do you think are essential for an entrepreneur to have in order to avoid the pitfalls that Adam Neumann faced with WeWork?
15. Do you think the story of WeWork will have a lasting impact on how future startups are funded and managed? Why or why not?
Individual Activities
Vocabulary Meanings:
Match each word to its meaning.
Words:
1. WeWork
2. Neumann
3. downfall
4. expansion
5. cautionary
6. financial
7. unsustainable
8. entrepreneur
Meanings:
(a) A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so
(b) Not able to be maintained or continued
(c) A person who starts a business and is willing to risk loss in order to make money
(d) Serving as a warning to others
(e) Relating to money, especially in relation to income, expenses, or investments
(f) The action of becoming larger or more extensive
(g) The state of being unable to continue at the same rate or level
(h) The act of declining or falling from a previous position
Go to answers ⇩
Multiple Choice Questions:
1. What was one of the factors that contributed to WeWork’s initial success?
(a) Providing flexible workspaces in the aftermath of the financial crisis
(b) Offering traditional office spaces
(c) Focusing on a mature and established workforce
(d) Restricting its operations to a single country
2. What was one of Adam Neumann’s unconventional approaches as CEO of WeWork?
(a) Creating a work environment that blurred the lines between professional and personal life
(b) Strictly separating professional and personal life in the workplace
(c) Offering no perks or incentives to employees
(d) Avoiding any form of employee engagement
3. What led to WeWork’s attempt to go public in 2019?
(a) A significant decline in its value
(b) The company’s substantial financial losses
(c) Neumann’s resignation as CEO
(d) Substantial investments from prominent backers
4. What did Adam Neumann manage to do despite WeWork’s downfall?
(a) Secure a major venture capital firm’s backing
(b) Invest in other ventures
(c) Disentangle his personal finances from the company and walk away with a substantial sum
(d) All of the above
5. What does the cautionary tale of WeWork and Neumann serve as a reminder of?
(a) The importance of prudent financial management
(b) The perils of unchecked ambition and the dangers of overvaluing a company
(c) The need for a realistic assessment of a business’s value
(d) All of the above
6. What does WeWork’s rapid rise and fall exemplify?
(a) The importance of a balanced approach to business growth and financial sustainability
(b) The dangers of overvaluing a company based on speculative potential
(c) The risks of chasing unsustainable growth and overreliance on investor enthusiasm
(d) All of the above
7. What is the main lesson highlighted by Neumann’s journey?
(a) The perils of unchecked ambition and the dangers of overvaluing a company
(b) The need for a balanced approach to business growth and financial sustainability
(c) The importance of prudent financial management
(d) The need for a realistic assessment of a business’s value
8. What is the article’s main message for entrepreneurs and investors?
(a) Emphasizing the perils of unchecked ambition and the dangers of overvaluing a company
(b) Stressing the importance of prudent financial management
(c) All of the above
(d) Highlighting the need for a balanced approach to business growth and financial sustainability
Go to answers ⇩
True or False Questions:
1. WeWork’s attempt to go public in 2019 revealed deeper financial issues, resulting in a significant decline in its value and Neumann’s resignation as CEO.
2. Adam Neumann’s unconventional approach to leadership, including offering free beer and blurring professional and personal life, did not attract a young and dynamic workforce.
3. Despite WeWork’s downfall, Adam Neumann managed to disentangle his personal finances from the company and walked away with a substantial sum.
4. WeWork’s concept of providing flexible workspaces did not gain popularity after the financial crisis and the rise of mobile technology.
5. The cautionary tale of WeWork and Neumann does not serve as a reminder of the perils of unchecked ambition and the dangers of overvaluing a company based on speculative potential rather than sound financial fundamentals.
6. WeWork, under the leadership of Adam Neumann, experienced a significant rise followed by a dramatic fall.
7. WeWork rapidly expanded globally with substantial investments, but its financial losses were substantial, leading to questions about its valuation as a technology company.
8. Neumann has not moved on to invest in other ventures and has not secured backing from a major venture capital firm after WeWork’s collapse.
Go to answers ⇩
Write a Summary:
Write a summary of this news article in two sentences.
Writing Questions:
Answer the following questions. Write as much as you can for each answer.
1. How did Adam Neumann’s personality and leadership style contribute to WeWork’s initial success?
2. What role did the financial crisis play in creating an environment conducive to WeWork’s business model?
3. In what ways did WeWork’s business practices raise questions about its classification as a technology company?
4. What were the consequences of WeWork’s failed attempt to go public in 2019?
5. What lessons can entrepreneurs and investors learn from the WeWork saga regarding business growth and financial sustainability?
Answers
Comprehension Question Answers:
1. What was the core concept behind WeWork’s business model?
The core concept behind WeWork’s business model was providing flexible workspaces, which became particularly appealing in the aftermath of the financial crisis, as commercial premises were plentiful and the advent of mobile technology facilitated remote work.
2. How did Adam Neumann’s leadership style contribute to WeWork’s initial success?
Adam Neumann’s charismatic leadership and unconventional approach, such as offering free beer and creating a work environment that blended professional and personal life, contributed to WeWork’s initial success by attracting a young and dynamic workforce.
3. What attracted young and dynamic workers to join WeWork?
The unconventional work environment that included perks like free beer and a blurred line between professional and personal life attracted young and dynamic workers to join WeWork.
4. Why did questions arise about WeWork’s valuation as a technology company?
Questions arose about WeWork’s valuation as a technology company due to its rapid global expansion coupled with substantial financial losses, leading to skepticism about its classification as a tech company and the justification for its high valuation.
5. What were the consequences of WeWork’s attempt to go public in 2019?
The consequences of WeWork’s attempt to go public in 2019 were the revelation of deeper financial issues, a significant decline in the company’s value, and Adam Neumann’s resignation as CEO.
6. How did Adam Neumann manage his personal finances in relation to WeWork’s downfall?
Adam Neumann managed to disentangle his personal finances from the company’s downfall, walking away with a substantial sum despite WeWork’s financial troubles.
7. What has Adam Neumann been doing since his resignation from WeWork?
Since his resignation from WeWork, Adam Neumann has moved on to invest in other ventures and has secured backing from a major venture capital firm.
8. What does the story of WeWork and Adam Neumann highlight about the importance of financial management in business?
The story of WeWork and Adam Neumann highlights the importance of prudent financial management and a realistic assessment of a business’s value, rather than chasing unsustainable growth and inflated valuations. It serves as a cautionary tale for the perils of unchecked ambition and the importance of financial sustainability in business.
Go back to questions ⇧
Listen and Fill in the Gaps Answers:
(1) concept
(2) providing
(3) struck
(4) enabled
(5) offering
(6) expanded
(7) technology
(8) revealed
(9) invest
(10) ambition
(11) speculative
(12) fundamentals
(13) investor
(14) financial
(15) business
(16) value
Go back to questions ⇧
Vocabulary Meanings Answers:
1. WeWork
Answer: (h) The act of declining or falling from a previous position
2. Neumann
Answer: (c) A person who starts a business and is willing to risk loss in order to make money
3. downfall
Answer: (e) Relating to money, especially in relation to income, expenses, or investments
4. expansion
Answer: (g) The state of being unable to continue at the same rate or level
5. cautionary
Answer: (a) A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so
6. financial
Answer: (f) The action of becoming larger or more extensive
7. unsustainable
Answer: (d) Serving as a warning to others
8. entrepreneur
Answer: (b) Not able to be maintained or continued
Go back to questions ⇧
Multiple Choice Answers:
1. What was one of the factors that contributed to WeWork’s initial success?
Answer: (a) Providing flexible workspaces in the aftermath of the financial crisis
2. What was one of Adam Neumann’s unconventional approaches as CEO of WeWork?
Answer: (a) Creating a work environment that blurred the lines between professional and personal life
3. What led to WeWork’s attempt to go public in 2019?
Answer: (d) Substantial investments from prominent backers
4. What did Adam Neumann manage to do despite WeWork’s downfall?
Answer: (c) Disentangle his personal finances from the company and walk away with a substantial sum
5. What does the cautionary tale of WeWork and Neumann serve as a reminder of?
Answer: (b) The perils of unchecked ambition and the dangers of overvaluing a company
6. What does WeWork’s rapid rise and fall exemplify?
Answer: (c) The risks of chasing unsustainable growth and overreliance on investor enthusiasm
7. What is the main lesson highlighted by Neumann’s journey?
Answer: (b) The need for a balanced approach to business growth and financial sustainability
8. What is the article’s main message for entrepreneurs and investors?
Answer: (d) Highlighting the need for a balanced approach to business growth and financial sustainability
Go back to questions ⇧
True or False Answers:
1. WeWork’s attempt to go public in 2019 revealed deeper financial issues, resulting in a significant decline in its value and Neumann’s resignation as CEO. (Answer: True)
2. Adam Neumann’s unconventional approach to leadership, including offering free beer and blurring professional and personal life, did not attract a young and dynamic workforce. (Answer: False)
3. Despite WeWork’s downfall, Adam Neumann managed to disentangle his personal finances from the company and walked away with a substantial sum. (Answer: True)
4. WeWork’s concept of providing flexible workspaces did not gain popularity after the financial crisis and the rise of mobile technology. (Answer: False)
5. The cautionary tale of WeWork and Neumann does not serve as a reminder of the perils of unchecked ambition and the dangers of overvaluing a company based on speculative potential rather than sound financial fundamentals. (Answer: False)
6. WeWork, under the leadership of Adam Neumann, experienced a significant rise followed by a dramatic fall. (Answer: True)
7. WeWork rapidly expanded globally with substantial investments, but its financial losses were substantial, leading to questions about its valuation as a technology company. (Answer: True)
8. Neumann has not moved on to invest in other ventures and has not secured backing from a major venture capital firm after WeWork’s collapse. (Answer: False)
Go back to questions ⇧
