Measuring Success: Analysis of Land Securities Group Plc

This report analyses the success of Land Securities Group Plc using financial and non-financial tools such as Triple Bottom Line, Ratio Analysis, Key Performance Indicators, CSR pyramid, competitor analysis and Balanced Scorecard. It includes a detailed analysis of the company's financial ratios, KPIs, and competitor analysis. The report also evaluates the company's CSR pyramid and provides recommendations for improving its financial performance.

Measuring Success

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Aims and Objectives....................................................................................................................3
Triple Bottom Line analysis.........................................................................................................4
Ratio analysis for Landsec...........................................................................................................5
Key performance indicators.........................................................................................................8
CSR Pyramid...............................................................................................................................8
Competitor analysis.....................................................................................................................9
Balance scorecard......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Measurement of the success of the business has been considered to be the utilization of
different metrics which can be used for the indication of the performance of the organization. For
this report the chosen organization is the Land securities group plc for which the success is going
to be measured. In this project the success of the organization will be measured from the eyes of
the organization with the application of different financial tools and non-financial tools. In order
to analyse the performance of the company the tools such as Triple Bottom Line, Ratio Analysis,
Key Performance Indicators, CSR pyramid, competitor analysis and also Balanced Scorecard are
going to be utilized.
MAIN BODY
Aims and Objectives
Aim :
The aim of this project is to evaluate the performance of Land Securities Group Plc with
the perspectives of its stakeholder through the application of different performance management
tools.
Objectives :
 To use the various management tools to measure organization performance.
 To examine the financial and non-financial information of Land Security Group Plc.
 To evaluate the success measurement of Land and securities group plc critically of their
financial areas.
 To provide recommendations about the ways in which the Land and securities group plc
needs to manage its financial performance.
Triple Bottom Line analysis
Triple bottom line is a business concept that is able to posits firms about their
commitment towards the measurement of their social and environmental impacts in addition to

their financial performance. This tool is going to be very effective in the analysation of the
financial performance through the following Ps,
Profit :
Profit is the metric which is able to measure the success of all enterprises as their main
objective has always been to main profit. Profit which is generated by this organization for its
shareholders is considered to be the factor that affects the viability of its requirements. It is the
factor that is very essential in the consideration for the organization and its determination
towards the strategic planning for the key towards the achieving the initiative of the key business
decisions (Braccini and Margherita, 2018). The maximization of the profits while its reduction of
the costs and mitigation of the risks is the factor that helps the Land security group plc to show
that it is majorly suffering losses in the period of the 2020 which was due to the impact caused
by the pandemic.
People :
The people which are involved with this company are its stakeholders that are
employees, shareholders and customers. The focus of this company has increased very
significantly towards the gaining the sustainability which is needed for the focusing the value's
creation towards the impacts of business decision-making. Having said that the management of
the organizational performance is directly related to the ways in which the business is able to
manage the people. Land and securities group plc is considered to be responsible for the
encouragement of the voluntarism in the workplace that can bring the external effect to the
change in a larger scale.
The Planet :
The planet this Land Security Group plc has been considered to be the engagement with
the planning and performance of the related to the sustainability impacts of the environment.
Landsec has been able to gain the sustainability reporting methodology going to be able to
provide the subject matter information (Fathollahi-Fard, Woodward and Akhrif, 2021). It has
been able to reduce the level of greenhouse gases that this organization emitted for the increasing
the direct affects of the environment. The energy consumption for this organization has been able
to develop the practices that has been more towards the sustainability of the nature. Its waste
materials which has been derived has been from the landfill and the percentage of the recycle
waste which also has increased over the few years by this company.

Ratio analysis for Landsec
Return on equity:
Return on equity is the ratio which has been considered to be the one that explains the
earning which the company is able to generated with the help of total shareholder's equity
(Hashemkhani Zolfani, Yazdani and Zavadskas, 2018). This organization has been able to
generate loss in its total net profit which has been seen with the help of the negative ratio that has
been calculated. The shareholders has been able to suffer the loss of 9.51% according to the
calculation o the Return on equity ratio.
Net profit ratio :
Net profit ratio is the ratio that indicates the total net profit percentage from the total
revenue which has been generated by the organization. It is also the indicator of the total
percentage of the income that the company generates from the sales in has been able to make. NP
ratio from the company is actually the loss of the company which it has suffered that has been
calculated to be more than -112 %.
Return on Assets :
The return on assets is considered to be yet another ratio that helps in the calculation of
the organizational efficiency through the measurement of the profit made by the company in
comparison to its Assets. It shows the operational efficiency of the company as it indicates how

the much money it can make from the help of investing in this company through the means of the
total assets and also being able to gain the return which is required.
Current Ratio :
The calculation of the current ratio has been able to analyse the efficiency of its
operations. This indicates the ways in which the company is going to be able to pay of its short
term obligations in order to be able to provide the ways in which it can influence the
organizational practices. From the calculation it can be seen that the current ratio of this
organization is decent in comparison to that of its profits. Which shows the reason why its was
able to survive during the poor financial performance.
Quick Ratio :
Quick ratio is the indicator of the company's short term liquidity position for the
measurement of the ability to pay of its short-term obligations only through current assets.
Surprisingly the idea quick ratio for a company has been calculated at 1.47 which is very high in
comparison to other ratio that shows that the company is financial not effective,
Debt-equity ratio :

Debt to equity ratio is that financial ratio which is the evaluation of the company's
financial leverage towards the calculation for its total liabilities with its shareholder's equity. It
can be said to be the key consideration of the debt-to-equity ratio that has been able to gain
higher and more effective performance for this company. The results of this ratio calculation
shows that this ratio stands at 1.29 which is not as idea as it should be as higher the debt-equity
to equity ratio better is the performance of the company.
Accounts receivable turnover :
The accounts receivable turnover is that ratio which is the indicator of the total number of
days which the business takes for recovering the debts. It is also the organization that helps in the
turnover in 88 days that shows the needs to be factored that enables the business towards the
management.
Inventory turnover ratio :
Inventory turnover ratio is the indicator of the rate that the inventory stock is sold or used
before being replaced or being calculated with the help of dividing the cost of goods which are
sold by the average inventory for the same period (Hatefi, 2019). It is also the ratios which tends
to improve the strong point of sales which is lower one to weak sales.

Key performance indicators
KPI are the set of quantifiable measurements which is used for the measurement of the
company's overall long term performance. It is also the key performance indicator for the land
security group plc as follows,
Revenue growth :
The revenue of this land security group plc has decreased from the year of 2019 to 2020.
It shows the poor performance of the organization in the generation of the sales (Mo, 2019.). It is
also considered to be the factor which is able to create an impact on the organization and suffer
loss.
Revenue per client :
The revenue which is generated by the organization with consideration of the number of
clients and the total sales which it has made. The average of sales this company makes from a
client shows efficiency of the company from per client revenue it generates. This KPI has also
decreased as the revenue of this organization has failed significantly.
Profit margin :
The profit margin of the company is considered to be one of the key indicators of the
organization that helps in the measurement of the success of the organization (Tuyen, 2021).
This in terms of making profit is also considered to be the factor that help in the generation of
sales. The reduction of the cost is also helpful for the profit margin for helping the show the
business the negative performance of the company.
Client retention rate :
As far as the client retention rate is considered this organization may have been able to
gain effectiveness of the company which is helpful for the higher customer retention that helps
the business in the creation of new strategies.
Customer satisfaction :
The customers satisfaction of this company are considered to be key towards the building
the effectiveness of the property deals of the company. The focus of this company is to satisfy
the services of the company which is considered to be the reason for its growth and reputations.
CSR Pyramid
The CSR pyramid is a framework that is able to explain the organizations needs that is
helpful for taking the responsibilities of the organization. From this pyramid the highs towards

the key responsibilities of this organization towards the society and environment can be
measured.
Economic responsibility :
The responsibility of this organization is to suggest this company about the different
types of services it can produce to provide the society about the requirements. It is also the profit
that is helpful for the business to understand the customers and their stakeholders of this
organization. Making more profit is also helpful for the society for means of the company to give
the taxes that the government can use for helping the society.
Legal Responsibilities :
The responsibilities of this company is about the compliance of the minimum rules in the
organization to manage the growth of the business. Some rules of business needs to be
consistently maintained in order to ensure that organization (Abadi and Widyarto, 2018). This is
to comply with the corporate governance of the organization.
Ethical responsibility :
As an organization it is the ethical responsibility of this organization to ensure that it is
providing the business the key requirements that are essential to manage the performance of the
company. Ethically the business is able to manage the factors which are responsible for the
development of the strategies of the business. Treating everyone with equality is the most
essential factor of the ethical responsibility which is needed to be managed by this organization
to maintain diversity in its operations. Landsec has been seen to maintain the diversity in its
organization.
Philanthropic responsibilities :
These are the responsibilities which are at the top of the pyramid that shows that the
business is helping the society just out of good faith. It is the responsibility which does not have
a driver related to it is the willingness of the organization. Land group securities plc is the factor
that brings the growth that is essential for this business.
Competitor analysis
For the analysation of the competition for Land group securities plc the porters five
forces are to be used,
Threat of new entrant :

The threat of new entrant is altered by this company in the ways in which it can help the
real estate bring innovation about the doing things that increase the competitive pressure in the
organization. It is considered to be the factor which helps in challenging the effectiveness of the
barriers for safeguarding the competitive edge (Singgih and Sulistyono, 2020). The threat of new
entrant for this organization is very low and can be developed by the business for increasing the
high building capacities and capital requirements.
Bargaining power of suppliers :
The suppliers in this market have high power of bargaining as the company is forced to
buy from them to maintain the quality and also the switching cost which the business has to pay
is generally higher if it switches the supplier. In order to maintain the good relations the
company refrains from switching suppliers.
Bargaining power of customers :
Customers in general are considered to be very demanding as it is the reason due to
which the best of customers can be used. It also puts the company in a very high pressure
towards its profitability in the long run. The bargaining power of the customers have affects in
the ability for the company to seek profit margins.
Threat of substitute services :
Threat of substitute in this sector is always high as the business model of this
organization is that of a service provider that is easy to imitate the organization has been able to
plan strategies for increasing the switching for the customers.
Existing competition :
The existing competition of the market of Landsec is known to be highly competitive.
The industry is very competitive in nature and as there are many small organization which
provide the similar services it helps them to increase the competition affects of the profitability.
Balance scorecard
This is the tool that helps in the integration of the aligning strategy and operations. The
strategic management of the performance metrics helps in the identification of improving the
internal operations of helping other external sources of outcomes (Abadi and Widyarto, 2018).
Financial perspective
Financial perceptive metrics that can identify by the ratios, KPI and also referring to its
performance.

 NP ratio : Loss
 Current ratio : This ratio is 1.4, the liquidity.
 Inventory turnover ratio : 11 days
Customers Perspectives :
The customers perspective metrics helps in measurement of company performance,
 It has market share of 13.6 million.
 Existing customers business development is low.
 It also provide timely delivering of services of the customers.
Internal business perspectives :
For Landsec the internal perspective of the company is to measure its performance as,
 Sales increase in 2021 is higher than in comparison to 2020.
 The break-even point of this organization is met in 2020 for the reason of suffering loss
(Bismark and et.al., 2018).
Human resources :
It is the approach to balance score card which explains employee retention abilities of this
company,
 This company focuses on employee satisfaction.
 To add value to employee.
 To retain employee of the company with relation to its brand name.
CONCLUSION
From the above project it has been concluded that the Land securities group that was
considered to be performing very poorly in 2020. For the different metrics for its analysation of
this organization performance triple bottom line metrics is used. This project also explains how
the CSR pyramid can be used for enhancing the organization and its practices towards
sustainability. The ratio analysis explain how the business is performing financially. The KPI of
this organization also helped in measuring the poor performance of this company. With the help
of competitor analysis this organization has been able to understand the key factors affecting its
competition through porters five forces model.

REFERENCES
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Online
Carroll’s CSR pyramid, 2022[Online]. Available through:
<https://www.toolshero.com/strategy/carroll-csr-pyramid/>