Economics of the Business Environment - Centrica Plc

16 Pages4090 Words242 Views

Added on 2020-02-03

Economics of the Business Environment - Centrica Plc

Added on 2020-02-03

BookmarkRelated Documents

Economics of the Business Environment

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Overview of Organization................................................................................................................3Analayzing the factors that affect the financial performance of Centrica Plc and SouthernEnergy Plc ...................................................................................................................................3CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................11

Economics of the Business Environment - Centrica Plc_2

INTRODUCTIONIn today's time there are many fluctuation in economic environment they may befavorable and unfavorable. Unfavorable condition in business will need some strategies for theirdevelopment and growth of economy. Therefore, firm need to understand all market situationwhich are rising externally through this, they can set up their business easily in competitivemarket situation and will reach out to their ultimate goals. To understand economics of businessenvironment is very difficult task because they have to consist of all factors which are impact ontheir working style. Centrica Plc main competitor is SSE plc therefore, their competition is veryhigh and they consist of different strategies for understanding market situation. In this report itconsist of performance of firm to its competitor from 2006 to 2016 through this, they cananalysis properly and can set market with macro context.OVERVIEW OF ORGANIZATIONAnalayzing the factors that affect the financial performance of Centrica Plc and SouthernEnergy Plc Centrica Plc is public limited company at United Kingdom and it main aim is to supplyelectricity and gas to businesses and consumer. Therefore, it consist of externals factors forsetting up different strategies within organization for maximizing in sale and generating moreenergy for UK service users and firms. Thus, organization is involving of new ideas and someinnovative techniques for attracting their customers (Oil and gas sector of UK, 2016). Theyconsist of small and large scale plants for producing enough electricity.Scottish Southern Energy Plc is public limited company and its headquarter is in Perth,United Kingdom. They are delivering products which consist of electricity, natural gas andbroadband to houses and business. It is one of the main constituent of FTSE 100 index. Thisbusiness organization is highly involved in the generation and supply of electricity gas. Hence,other energy related services include gas storage, exploration and production, contracting,connections and metering. Hence, it is one of the sixth largest firm which has dominated theenergy sector to the large extent. Thus, it is one main rival firms of Centrica Plc Financial performance of Centrica Plc from 2006 to 2016 are as follows:Year20062007200820092010201120122013201420152016

Economics of the Business Environment - Centrica Plc_3

Revenue1640316272208722196322423228242334226571294082797125900Gross profit 36414361288038445897420054855394323543634817Gross Margin%22.226.813.817.526.318.423.520.31115.618.6Net Income-1551505-13784419354211245950-1012-747-649Net margin -0.94%9.25%-0.66%3.84%8.63%1.84%5.33%3.58%-3.44%-2.67%-2.51%Earning pershare-0.151.28-0.130.661.490.320.950.73-0.81-0.59-0.56Return onEquity %-7.8161.33-3.5919.8538.667.3722.0917.09-25.53-38.18-22.33Return oninvestedcapital %-0.3132.45-1.6911.5922.375.1313.2810.12-7.64-6.12-3.97GP margin 200620072008200920102011201220132014201520160.00%5.00%10.00%15.00%20.00%25.00%30.00%

Economics of the Business Environment - Centrica Plc_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Internal and External Analysis of Centrica plc - Desklib

|16

|758

|499

Global Business Strategy: Analysis and Recommendations for Centrica plc

|23

|4597

|222

The Impact of Globalisation on Corporate Structures of Multinational Companies

|40

|9965

|27

British Petroleum Strategic Management and Sustainability Assessment 2

|15

|3061

|326

Financial Resources Management in Construction Industry: A Comparative Analysis of Balfour Beatty PLC and Polypipe Group PLC

|13

|3622

|62

Essay on Financial Management in Organization - Barratt Developments

|14

|3083

|128

Economics of the Business Environment - Centrica Plc