Lookers Plc: Business Strategy, SWOT Analysis, and Financial Analysis

Case A: Lookers plc
EXECUTIVE SUMMARY

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The contract for supplies to Lookers Plc is of utmost importance to the company for our future
prospects. If we are able to get our hands on this deal/ contract, then it will be great for the com-
pany. Lookers Plc based in the United Kingdom and Ireland is a car dealership chain. It’s based
in Altrincham and represents many motor brands, listed in London Stock Exchange. Over the
years, Lookers Plc has modified the ways of carrying on business in the consumer services.
Lookers also engages in agricultural and leasing businesses through the retail clientele. The com-
pany is a small sized cap stock with a market capitalization of £ 382m. To begin with, we shall
analyze the market position of the company and it’s financial and accounting data, to get a better
understanding of its prospects.
CASE A: LOOKERS PLC- TABLE OF CONTENTS

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1. Introduction...............................................................................3
1. Looker’s Business Strategy............................................................4
2. Looker’s SWOT Analysis...............................................................6
2. Looker’s Accounting and Financial Process.......................................8
3. Lookers vs. Caffyns Plc................................................................15
3. Conclusion.................................................................................17
1. INTRODUCTION
Lookers Plc. Founded in the year 1908, is a chain leadership dealing in cars and automobiles.
The company has its base in the United Kingdom and Ireland. The company, being listed on
the London Stock Exchange, represents on the multiple car brands. Having its core base in

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Manchester, it also deals with the sale of bicycles, car spare parts and the other accessories.
In order to develop more, the company had acquired numerous garages. The company being
listed on the London Stock Exchange started issuing shares on the stock exchange which was
the ultimate source for the additional funds in the company, thereby enabling it to expand
further. After meeting its expansion policy, the company had successfully acquired lot of
dealerships of the renowned brands to generate more funds in the business. (Referencefor-
business.com, 2019) The company, Lookers is one of the outstanding motor retail groups in
the United Kingdom, who also provides after sales services. The company’s wide range of
product offerings include British Leyland makes, adding Talbot, International Harvester,
Vauxhall, Peugeot, Fiat, and Mercedes Trucks. Etc. The brands that the organization includes
are Ferrari, Jaguar, Aston Martin, Audi, Bentley, Land Rover, Lexus, Toyota and many
more. Lookers boasts of growing its existing businesses through a combination of organic
growth, seeking profitable opportunities to increase their revenue and presence. (Hargreaves
Lansdown, 2019)
2. Lookers Business Strategy
Lookers Plc has the business pattern of considering the correct set of brands at the correct loca-
tions with the perfect solution to progress against the strategic business goals. The company,
Lookers Plc.is one of the outstanding automobile retail group of companies in the United King-
dom, who also provides after sales services. The company deals in new as well as second hand
cars and also the less heavy commercial vehicles , operating in around Ireland. This dealing in

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the sale of new and used cars, vans and its services beyond sales, forms the major source of gen-
erating revenue in the company. The group is dedicated to providing the services, support, and
other expert advice from the purchase till the relevant after sales care. Their strategy is focused
on and even more committed to provide the retail experience to their customers. Broadly their
strategies can be categorized into 3 factors:-
● People-They hire and nurture the best of talents and continuously empower them to de-
liver the best experience for their customers
● Marketing-Brand proposition development is their strategy to enhance customer experi-
ence and build reputation with prospective employees, suppliers and shareholders
● Technology-to ensure a seamless experience for its customers, Lookers is striving in an
Omni-channel retail environment. It focuses on best after sales service
The marketing business strategy is generally underpinned by choosing the best brands, the best
locations to establish the business and the utmost important is the smart execution of the strate-
gies. Lookers Plc aims to benefit from the positivity in the car market cycle. The company fo-
cuses on the best strategic quantum to generate revenues in the company. Lookers’ key high-
lights are jotted down as below:
● The company strives to continuously encourage sales for the new cars to speed up its
profit earning system.
● It aims to strengthen its portfolio of franchise relations and the dealerships for growing
further.

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● The company focuses on the digital strategy for the promotion of the business as it al-
lows the customers to deliberately view the company details at the ease of just a single
click.
Lookers also engages in agricultural and leasing businesses through the retail clientele. The
company’s wide range of product offerings include makes of the British Leyland , Interna-
tional Harvester, Vauxhall, Fiat, Peugeot, Fiat, and Mercedes Trucks. Etc. The brands that
the organization includes are Ferrari, Jaguar, Aston Martin, Audi, Bentley, Land Rover,
Lexus, Toyota and many more.
The company followed the strategically way of closely keep a track on its dealership execu-
tives which was the only way they could detect that there was an internal executive who was
indulged in the whistleblowing policy and used to leak out the company policies. It was a
crucial turnaround for the business. The executive involved was immediately fired as per the
policy and strategic norms. (Companieshouse.gov.uk, 2019)
As stated the company was forced to change its strategy from offline to online. The cus-
tomers were increasing each day and with the advent of latest technologies, they were keener
on scrolling through their screen instead of visiting the showrooms for the offline scanning of
the products. Moreover, only half of the consumers were willing to still visit the dealership
and ask for a test drive. Others were reluctant to do so and were happy enough in completing
the transaction online.
With this digital conversion of the business, the company was not being able to generate the
profits as was done in the offline dealership.