Measuring Success: Performance Analysis of Land Securities Group Plc

This report analyses and evaluates the performance of Land Securities Group Plc with consideration of financial and non-financial data by applying a variety of performance management tools such as triple bottom line, CSR pyramid, ratio analysis, competitive analysis, KPIs and balance scorecard.

MEASURING
SUCCESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1 The Triple bottom Line of Land Securities Group Plc...........................................................3
2.Differentiate the financial statement based on the ratios calculated:.......................................4
3.Justify and detailed the KPIs of land securities group Plc......................................................6
5.Competitive analysis for Land Securities Group Plc...............................................................7
6. Explanation of Balance Scorecard of the Land Securities Group Plc.....................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Corporate Social Responsibility(CSR) is a business model that helps company in making
a concerned effort towards society and environment while operating their business operations. It
helps in maintaining good brand image of companies in society(Ahmadabadi and Heravi., 2019).
Firstly, a company need to be accountable to itself and its shareholders to become socially
responsible. This report analyse and evaluate the performance of Land Securities Group Plc with
consideration of financial and non-financial data by applying a variety of performance
management tools. The management tools discussed in the report are triple bottom line, CSR
pyramid, ratio analysis, competitive analysis, KPIs and balance scorecard for analysing the
performance of Land Securities Group Plc.
TASK
1 The Triple bottom Line of Land Securities Group Plc.
The Triple bottom Line s an accounting framework which focuses on corporate social
responsibility. It encourages organisations to consider social and environmental impacts along
with the passion for earning profits. A controversial isue highlighted by triple bottom line is
throw away of toxic waste. Companies have to make sure that their operation don't affect the
environment negatively and the surroundings are also clean. The theory based on the 3Ps which
makes business socially responsible which are -
• People – Companies are responsible for the well being of people and society. The triple
bottom line theory evaluate the extent to which an organisation socially responsible.
• Profits – Profit is an important goal for every business to fulfil responsibilities towards
lenders, operational auditors and employees.
• Planet - It is associated with the location, i.e. the area, city or state in which company is
located. Companies have to make sure that their operations don't affect the environment
negatively and the surroundings need to be clean.
There are three aspects of triple bottom line as well. They are :
• Social Sustainability – Social sustainability is an important aspect for corporate social
responsibility. In this, companies have to focus on society groups, social surroundings an
internal resources which is measured by the profits of company and the investments made
for worker's compensation .

• Environmental Sustainability – As an important aspect in triple bottom line, it considers
those business operations and tasks which causes minimum damage to the environment.
• Economic Sustainability – The economic aspect of company measures in terms of
business' contribution towards the overall growth of the industry and economy as well.
This helps in analysing the financial performance and profitability of the business.
2.Differentiate the financial statement based on the ratios calculated:
Liquidity Ratio : This is the financial ratio to measure the liquidity of firm in terms of paying off
its debts when they become due(Chatterjee, Kar and Gupta., 2018). This liquidity ratio affects
the credit rating and credibility of the company. If a company have liquidity ratio of 1 which
means they can pay off its current debts without selling its long term assets.
Current Ratio = Current Asset / Current Liabilities
In year 2019 = 524 / 1225
= 0.43: 1
In year 2020 = 1859 / 1249
= 1.49: 1
Quick Ratio = Quick Assets / Current Liabilities
In year 2019 = 501 / 1225
= 0.41: 1
In year 2020 = 1835 / 1249
= 1.44: 1
Interpretation: In year 2020, Landsec Securities Group Plc. company's current assets are more
than its current liabilities. According to the financial accounting, the ideal ratio of liquidity is 2:1
, but here in both years, company is not able to maintain the ideal ratio which shows the
company's inability to pay off their liabilities against assets.
Profitability Ratio : Profitability ratio is the financial ratio that helps in determining the financial
performance of business and evaluating the ability to generate profits as well at the end of an
accounting period(Gleeson.,2018). The ratio is calculated in consideration with total revenue,
assets, the profitability of rival companies, past performance of companies which indicates how
well the company is dealing with shortcomings and obligations within a specific time period.
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: After calculating the profitability ratios of Landsec Securities Group Plc. For the
year 2019 and 2020, it has been analysed that the gross profit are negative which reflects the
under performance of the firm in terms of optimization of fixed assets and resources, which is
actually plays an important role in the success of the business.
Solvency Ratio : Solvency ratio measures the ability of a firm to meet its long term obligations.
The ratio helps investors to track the ability of the firm to meet its long term liabilities and assist
them in decisions related to long term investment in the company(Jena., 2020).
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 : In the year 2019 and 2020, the company Landsec Securities Group Plc. Interest
coverage comes in negative which indicates the inability of the firm to pay interest in due time to

their shareholders which is important from the future aspect of the business in the competitive
market.
Efficiency Ratio : Efficiency ratio are used in evaluating the company's ability in effectively
utilisation of available resources such as capital, stock and assets to generate income(Weber.,
2019). The more efficiently a company optimizes and manages their resources, the more likely it
can generate the maximum profitability.
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 calculated ratios of 2019 and 2020, it can be concluded that the
company has a fall in its sales in 2020 by 1.48 times with comparison to 2019.
3.Justify and detailed the KPIs of land securities group Plc.
The KPIs function plays an important role in determining and motivating the company in
near future by improving their task's performance. The information collected about the company
with the help of this function take in consideration for research and development.
Social Belief: Landsec Securities Group Plc. Is heavily effected in year 2020 which has
provide the social belief for business. Here, KPIs of the company is in full control while
optimising resources.
Safety Measures: The company takes various safety measures while carrying out
operations to stay confidential in their work for better improvement of the business.
4.Describe the Corporate Social Responsibility Pyramid of Land Securities Group Plc.
Corporate Social Responsibility Pyramid consists of four major stages of the company
which are as follows: Economic, legal, ethical, philanthropic duty. The following duties are
explained below-
• Economic Duty : This duty is fulfil with the help of population for analysing the
situation of the society and level of discrimination prevailing in the workplace with the
help of measures(Keller and Brexendorf., 2019). But in the company Land Securities
Group, the economic stage of pyramid gives the less assurance in order to increase the

profit of the organisation. This happens due to a fall in employees and gains of the
company.
• Legal Duty – This the most important duty which should be fulfil by every business
organisation. A Firm should work according to the prescribed rules and regulations of the
country and business in which it deals. If the company doesn't follow the criteria and
taxation policies of the government, they have to suffer heavy losses in monetary or non-
monetary terms.
• Ethical Duty – Ethical duty in CSR pyramid refers to the expectations of society towards
the company while conducting and managing business operations in an ethical way.
Ethical duties are not available on papers but on expectations which includes the
particular standards and methods with consideration of society.
• Philanthropic Duty – Philanthropic responsibility assumes the operations and tasks of
business which are voluntary. The notion behind this duty is to create an impression in
society that the business wants to give something in return for the welfare of the
society(Kubli, Loock and Wüstenhagen., 2018). Different types of philanthropy are
adopted by businesses such as gifts, voluntary combinations to the society or groups of
shareholders, donations and voluntary work.
5.Competitive analysis for Land Securities Group Plc.
Land Securities Group Plc. Is a firm who deals in construction and real state in UK. The
company's work is to establish and manages the shopping centres, public parks, offices etc.
There are lot of competition in the market present an the competitors are The British land firm,
Capital shopping centres and Canary wharf group.
Capital shopping centres group Plc is a firm which has expertise in managing and
developing the regional shopping areas of a nation. It establishes the organisation which keeps
investments and occupies the administration in investments of a company portfolio. It is on the
same level of competition with other sectors which are dealing in real estate firm.
6. Explanation of Balance Scorecard of the Land Securities Group Plc.
This method is used by the organization for analysing the position and strategy of the
business. It also determines how small changes take place in the field of financial aim, consumer
need, department of operation, supply change resolution, etc(Sreedharan and Sunder., 2018).
Balanced scorecards are four types: financial customer, internal business, innovation and

learning perspective. These are all provided with an answer to the following questions: how the
company efforts to fulfil the customer needs, what type of changes shareholders and investors
are looking for in an organization, and how to take the high number of credit facilities.
Generally, all companies or an organization need a balanced scorecard and takes many
actions for maintaining it. It is because it determines the company activity and performance of
their day to day working for meeting the requirement of business management(Mavi and
Standing., 2018). The company is helpful in planning, organizing and maintaining the business
by analysing the different activities like easy and flexible management framework, good team
members, knowledgeable staff, and support of top management, if these functions are not
virtually taken place then its chance of failure in business. One more scorecard is present that is
known as monetary or money measures, it performs the activity by analysing the records. There
are the following ways of balanced scored cards which are beneficial for the firm.
 It provides the information and a good structural framework for planning and developing
the business.
 It gives a one–page picture which means it gives a strategy which is easily understood
both externally and internally.
 It aims to target its business projects and initiative to the other strategic objectives.
 It also plays a role in key performance indicators because of their different planning goals
 Business scores are useful in maintaining the report systematically and are also designed
in the dashboard. It is the method which continuous focus on activity issues and helps the
organization execute the strategies according to its needs.
The following points are indicating that the company is changing its innovation and technology
and trying to build a monopoly in the marketplace for increasing profit and sales(Morozova.,
Popkova and Litvinova., 2019). These types of changes are very expensive and time-consuming.
The impact on business due to these changes increment process may be the effect.
CONCLUSION
From analysing of the above report, it concluded that it is necessary to change the activity
and business operation according to the change in a climate so that the business earn more profit
and help increase the sale. In this report, businesses attract consumers more by fulfilling their
needs and wants towards the target. It provides various types of strategies for measuring the
performance of the business. The report of the organization gives the financial profits and gains

that are used for the investment and growth of the company. The company Land Securities
Group always try to maintain accurate business report and achieve benefits in the market with
the help of corporate social responsibility or CSR. The organization also perform duties such as
economic duty, legal duty, ethical duty and Philanthropic duty. The report contains tools of
performance management such as KPIs, CSR pyramid, competitive analysis and balanced score
to analyse the key areas of business. Running the company with the help of a balanced scorecard
means the company increase its profits and expands its business.

REFERENCES
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