Measuring Success: Analysis of Land Securities Group Plc

This report analyzes the success of Land Securities Group Plc through a ratios analysis, KPIs, CSR Pyramid, balance sheet scorecard, and competitor analyses. It also discusses the company's commitment to corporate social responsibility and sustainability.

MEASURING
SUCCESS

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Explain the Triple bottom line of Land Securities Group Plc.................................................3
2. Compare the financial statement based on ratios calculated...................................................4
3. Justify and detailed the KPIs of land securities group Plc.......................................................6
4. Describe the Corporate Social Responsibility Pyramid of Land Securities Group Plc...........6
5. Measure the contestant of Land Securities Group Plc.............................................................7
6. Explained the Balance Scorecard of the Land Securities Group Plc.. ....................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Corporate social responsibility is a kind of self-regulation which aims at improving the
environment, economy, and communities. These assure that the business is fulfilling the
commitment of the organization. The organization decides its CSR activities according to its
business activities and how these activities affect the environment and society (An, 2021). This
report includes information regarding the Land Securities Group PLC. This report includes a
ratios analysis of the organization, Key performing indicators which helps in determining the
area from where the firm earns the most. It also includes a CSR Pyramid, balance sheet
scorecard, and competitor analyses of the company.
MAIN BODY
1. Explain the Triple bottom line of Land Securities Group Plc.
The organization works on ethical principles and it creates a new and great experience for the
people. The organization is working on climate change and also working for the inequalities in
the community. The organization also works for an organization whose sustainability which is
explained below,
Creating jobs and opportunities: By creating more jobs increases the standard of living. It
helps in attracting great talent and workforce to the organization. It increases accountability and
authority by improving the image in society (Frynas and Yamahaki, 2019).
Efficient and effective use of natural resources: the company work on minimizing the
impact of its operations on the global environment but also it takes actions on improving the
environment so that it will improve the living on earth.
Innovation and sustainable design: By making the available space more convenient and efficient
for working and developing the areas in such a way that it benefits the environment and the
business areas which deliver more value to the customers.
The Business concern is also working on transitioning to net zero which means that the overall
carbon emissions to zero. The company has added Net-zero to its operational portfolio and it will
work with 100% renewable electricity and also increase the volume of renewable resources in
the organization. Reduce the carbon emission associated with construction activities. Offsetting
the use of carbon consumption by using renewable energy. The organization became the first

property company in the world who have initiated its target Science-based targets initiative
(Manasakis, 2018).
2. Compare the financial statement based on ratios calculated.
Liquidity Ratio: This ratio states the liquid position of a business, which includes the current
assets owned by the organization and the amount owed to the creditors of the firm.
Current Ratio = Current Asset / Current Liabilities
In year 2019 = 524 / 1225
= 0.43: 1
In year 2020 = 1859 / 1249
= 1.49: 1
Liquid Ratio = Liquid Assets / Current Liabilities
In year 2019 = 501 / 1225
= 0.41: 1
In year 2020 = 1835 / 1249
= 1.44: 1
Interpretation: From the above ratio it can be concluded that the Firm was not able to generate
sufficient current assets in the year 2019 but in the next financial year the current assets of the
organization have increased.
Profitability ratio: This ratio helps in determining the financial risk associated with the
organization. It also evaluates the capacity of a company in generating profits. This ratio
considers the balance sheet, statement of profit and loss, and shareholders’ equity to assess the
profitability of the organization (Pimentel Da Silva, 2021). It compares the company’s
performance with the previous performance of the company.
Gross Profit = Gross profit / Sales * 100
In year 2019 = (-40 / 757) * 100
= (-0.05284) * 100
= -5.28 %
In year 2020 = (-690 / 741) * 100
= (0.9311) * 100
= -93.11 %
Net Profit = Net Profit / Sales * 100

In year 2019 = (-123 / 757) * 100)
= (-0.1624) * 100
= -16.24 %
In year 2020 = (-119 / 741) * 100)
= (-0.1605) * 100
= -16.05 %
Interpretation: From the above-calculated ratios it can be seen that the company is incurring
losses, which have further increased in the next year. The Net profit of the organization shows
that the firm has suffered further losses as the operating cost is pretty high that have caused the
firm to suffer losses.
Solvency Ratio: This ratio is the key component of financial risk that helps in determining the
cash position of a firm. It determines the ability to pay off its current outstanding’s (Zhao,
Zhang, and Kwon, J., 2018).
Debt equity Ratio = Debt / Equity
In year 2019 = 2889 / 9920
= 0.29 Times
In year 2020 = 4361 / 8750
= 0.50 Times
Interest Coverage Ratio = Earnings before interest and tax / Interest on long term debt
In year 2019 = 40 / (10)
= -4
In year 2020 = 690 / (165)
= -4.18
Interpretation: From the above calculations it can be analyzed that the organization uses more
equity as compared to the debt it can be seen that the ratio has increased by 0.21 times which
means that the company is increasing the use of debt as compared to equity for financing the
business operations.
Efficiency Ratio: This ratio determines how efficiently an organization uses its resources to
generate sales. These ratios are used by the organization to know how efficiently assets are
utilized to generate sales(Zhao, Zhang and Kwon, 2018).
Stock turnover ratio = Cost of Goods Sold / Average Inventory

In year 2019 = 271 / 23
= 11.78 Times
In year 2020 = 274 / 24
= 10.29 Times
Interpretation: From the above, it can be seen that the firm is involved in the property business
which means the stock of the company is the property available to the organization. In the
following case, the company is having 11.78 times stock turnover which has reduced to 10.29
times.
3. Justify and detailed the KPIs of land securities group Plc.
Field which are ascertained and well-advised for the function of betterment in which business
needs to perform in future. These are affected by the research and development in order to
understand the field where company is already working or necessary to perform in
future(Frynas and Yamahaki, 2019).
Social belief: In the year of 2020 this was the very first year where the land securities
group's authority has passed the social belief of the enterprise. The firm has successful procedure
to power the task based upon the assistance and control the KPIs of the business. The third party
data suppliers assist in implicit the assumptions and procurator values which are also connected
with the beliefs of the organization. This area is relatively very broad thus the firm can believe
other more betterments and increase value to this area.
Safety: Company deploy the safety determinant to the other parties it's take precaution for
the online agreement of the business.. company necessary to believe its internal attribute to
assemble the personal details of the organization in order to understand the field where the firm
need to perform the work.
4. Describe the Corporate Social Responsibility Pyramid of Land Securities Group Plc..
Firm social duty is basically explain the four stages of corporate social responsibility which
involves; Economic, legal, valuable and financial aid duty(Rashid, 2021). These obligations are
describe below in very detailed:
Economic duty: It is very lower belief of pyramid which describe about the profitable
situation of the company. It involves task which are profitable for the company or it necessary to
make them gainful. In the deficiency of this stages the firm will not capable to render gains and
employees(Frynas and Yamahaki, 2019).

Legal duty: In the second instance of duty in which a company necessary to follow the
command to decently endeavour the company activities properly. It is main responsibility of the
organization to follow all the rules and regulations of the government and apply it on time. They
necessary to precede various kinds of laws it involves; company law and tax regulations. Firm
need to correspond these laws and check the responsibility for the act of the organization.
Valuable duty: This third stage of pyramid describe the levels of pyramid which define
about the valuable action and ethical code of conduct which necessary to precede by the
company. This also describe the psychological state of the organization and its tasks towards its
employees and generic persons. In the following case study business is running with the labours
intensive plan of action in order to give jobs to the people who actively looking for employment
(Han, Zhuangxiong and Jie, 2018).
Financial aid duty: This is one of the shortest part of the pyramid at the top- level,
companies necessary to perform work activity upon their carbon discharge because firms are
widely dependent on the machinery. Therefore, In the following illustration the business is
working with the labour intensive technology which helps in reducing the carbon emergence
from the company procedure.
5. Measure the contestant of Land Securities Group Plc..
Land Securities Group Plc. Is a very big real state and construction organization in UK
which develop and managed the offices, customer shopping centres and public parks. Basically
there are three main rivals are present in the market such as: Capital shopping centres group,
canary wharf group and The British land firm.
Capital shopping centres group plc is dealing in property sector it establish the
investment keeping organizations which occupy the administration in investments of a company
portfolio. Basically this firm is expertise in developing and managing the regional shopping areas
of a nation. It gives an equal competition to the other sectors which also deals in a real state
business.
Canary wharf group is a very large organization and develop the biggest urban
regeneration project in nation. It is a commercial residential estate organization who is self
owner, manager and developer is answerable for the reconstruction. Basically it also a largest

competitor for the other real estate sectors. The main objective of this organization is to modify
urban places into extraordinary surroundings.(Li and et.al., 2022).
The British land organization was discovered in 1856 it also deals in a property
business and it was a largest biggest organization with a high quality portfolio of commercial
property and it self-owned, developing and finances the commercial estate. It real estate profile
construct and develop the public parks, super markets, customer shopping centres and
departmental stores. British land firm involves direct owned real estate also the property which
are held through join ventures and investment funds. This company is very big threat from other
sectors which were also deals in real estate.
6. Explained the Balance Scorecard of the Land Securities Group Plc..
This concept of balance score card permits superior to accept four four characteristics of the
company. These scorecard involves solutions of four questions viz, how to consumer watch
company, what shareholders and stakeholders see into a firm, at which task company is surpass
at and how to create the high value of credit and better its projected task(Manasakis, 2018).
Some companies have actively accepted the decent scorecards. Their initial connection
with the scorecard shows that it met some various management necessity. Firstly, the scorecard
merged, in a individual management document, a number of clearly different element of a
company's brutality function: being a consumer positioning, declining responsive time,
committing to choice, emphasizing cooperation, declining new project induction time and
monitor for as long as achievable. A sound scorecard include monetary measures that report for
the consequences of past actions. On the other hand it also formulate monetary measures with
functional measures of customer honesty, inner circularity, and the development of betterment
and companion to exercise functional measures, which are the mechanism of future monetary
execution. While noting and performing with many firms, it determined that senior executives
did not believe on one set of measure to pass judgement on another. They know that no
individual metric can show a distinct presentation on the objectives or focus on fundamental
fields of the organization. Controller wants a clear presentation of currency and functional
measures(Ngai and et.al., 2018).
For example: Company can decline demonstration time in two completely different structure: by
succeeding new projected demonstration or by only contributing projects that are increasingly

different from present task. Programming expenses can be decreased by declining the
programme time or exploding the size of the package. In addition, beginning programs and first
pass rates may arise but the increment may be due to combine of activities fluctuating to high
prescriptive, easier- to- supply, but lesser-edge projected tasks(Pimentel Da Silva, 2021).
CONCLUSION
As it is concluded from the above report that it is very crucial for the company to take
precaution of the climatic situation in order to create various kinds of tasks so that they are
capable to attract consumer towards the product. There are various method to measure the
achievement of the business. The financial report of the organization which is been formulated
picture that the firm has profits which can help to use for the other more investment in order to
create growth and expansion of the enterprise. The Land Securities Group Plc. necessary to
accept various plans it includes corporate social duty in order to achieve competitive benefit and
increase market share. There are kinds of responsibilities perform by the organization towards
the external environment such as legal duty, ethical duty and economic duty. There are various
calculation which can be utilize by the business in order to perform the tasks in a very productive
manner and increase efficiency. The balance scorecard can assist the firm in formulating the
results and better accordingly.

REFERENCES
Books and Journals
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Benlemlih, M. and Bitar, M., 2018. Corporate social responsibility and investment
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social responsibility and firm risk. Journal of Economics and Business. 101. pp.58-72.
Chen, T., Dong, H. and Lin, C., 2020. Institutional shareholders and corporate social
responsibility. Journal of Financial Economics. 135(2). pp.483-504.
Cho, K and et.al., 2021. The valuation effects of corporate social responsibility on mergers and
acquisitions: Evidence from US target firms. Corporate Social Responsibility and
Environmental Management. 28(1). pp.378-388.
Frynas, J.G. and Yamahaki, C., 2019. Corporate social responsibility: an outline of key concepts,
trends, and theories. In Practising CSR in the Middle East (pp. 11-37). Palgrave
Macmillan, Cham.
Han, W., Zhuangxiong, Y. and Jie, L., 2018. Corporate social responsibility, product market
competition, and product market performance. International Review of Economics &
Finance. 56. pp.75-91.
Li, B and et.al., 2022. Mixed-ownership reform and private firms’ corporate social responsibility
practices: evidence from China. Business & Society. 61(2). pp.389-418.
Manasakis, C., 2018. Business ethics and corporate social responsibility. Managerial and
Decision Economics, 39(4), pp.486-497.
Ngai, E.W.T and et.al., 2018. Business sustainability and corporate social responsibility: case
studies of three gas operators in China. International Journal of Production
Research. 56(1-2).pp.660-676.
Pimentel Da Silva, G.D., 2021. Powering corporate citizenship: assessing corporate social
responsibility of hydroelectric companies in Canada. Impact Assessment and Project
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Rashid, A., 2021. Board independence and corporate social responsibility reporting: mediating
role of stakeholder power. Management Research Review.
Zhao, H., Zhang, F. and Kwon, J., 2018. Corporate social responsibility research in international
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pp.389-400.