Measuring Success: Techniques and Tools for Evaluating Performance of Land Security Group Plc

This study focuses on the evaluation of the performance of Land Security Group Plc, a leading commercial property dealing organization in the UK. It covers different techniques and tools used to measure success, including triple bottom line, ratio analysis, KPIs, CSR pyramid, competitor analysis, balanced scorecard, and horizontal evaluation. The study provides insights into the financial and non-monetary aspects of the organization's performance, including its profitability, liquidity, efficiency, and gearing ratios. It also examines the organization's social responsibilities and its competition in the market.

MEASURING SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Triple Bottom Line......................................................................................................................1
Ratio analysis..............................................................................................................................2
KPIs.............................................................................................................................................4
CSR Pyramid...............................................................................................................................4
Competitor Analysis....................................................................................................................5
Balanced Scorecard.....................................................................................................................5
Horizontal analysis .....................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Measuring success is concerned with having the ability to evaluate the overall
performance of the company via using different tools and techniques so that reliable and relevant
information can be obtained. In the current era, it becomes highly important for the organization
to give emphasis on measuring the success so that fair evaluation of the performance of the
company can be exerted to gain information for makings strategic decision. The current study is
based on Land Security Group Plc. which is one of the leading commercial property dealing
organization in UK. The current study will measure success of firm by paying attention on
application of techniques like triple bottom line, ratio analysis, KPIs, CSR pyramid, competitors
analysis, balance scorecard and horizontal evaluation. This will aid in conducting & financial
and non monetary evaluations o that better understanding can be achieved.
MAIN BODY
Triple Bottom Line
It is the one of the significant concept that is helpful in measuring the social and environmental
impact via considering the financial performance of firm. This pay attention on profits, people
and planet. Land Security Group Plc. Has the below performance in this mentioned criteria:
Profits
The particular organization generates profitability for the stakeholders so that greater
ability to attract & retain can become possible (Hristov and Chirico, 2019). From the
assessment it can be mentioned in the part of profitability firm is performing poor which needs
to be improved as can have negative impact on its stakeholders.
People
This is considered to be second component which helps in understanding business's
societal impact on commitment to people (Birkel and Müller, 2021). Land Security Group Plc.
has significant stakeholders such as community, customers, partners, investors, etc. On the basis
of this information it can be interpreted that firm is taking relevant action for engaging with
stakeholders which is positively impacts organization.
Planet
In the triple bottom line it can be identified that making positive impact on the planet is
highly important. The firm operates in the real estate sector where it highly gives emphasis on
attaining the actions like reducing carbon footprint in turn better performance can be obtained.
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This positively influences planet and aids in meeting corporate social responsibilities to have
improved image in market.
On the basis of the evaluation of the triple bottom line of the company it can be
identified that firms financial performance is ineffective which require focusing on gaining
appropriate implementation of improvement action so that higher profitability can be received
(Alshehhi, Nobanee and Khare, 2018). This is indicating that there is application of lack of
sustainable practices that can favorably influence success of organization that is pertaining it to
have poor growth in sector.
Ratio analysis
Profitability ratio
Particulars Formula 2019 2020
Gross Profit -40 -690
Sales revenue 757 741
GP ratio Gross profit / sales * 100 -5% -93%
From the evaluation of the provided information it can be interpreted that
profitability is deriving in negative term. This is indicating losses that is showing inclining trend
as has increased as compared to the previous period.
Particulars Formula 2019 2020
Net profit -123 -837
Sales revenue 757 741
NP ratio Net profit / sales * 100 -16% -113%
On the basis of the above illustrated calculation it can be interpreted that there is higher
level of net loss which needs proper improvement action. The results derived for the two
continuous years are -16 and -113% which is reflecting upward trend in losses respectively. On
the basis of this, it can be interpreted that there is need of making improvements.
Liquidity ratios
Particulars Formula 2019 2020
Current assets 524 1859
Current liabilities 1225 1249
Current ratio Current assets / current liabilities 0.43 1.49
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From the assessment of the given computation it can be recognized that particular firm si
possessing lower performance than the ideal ratio in the year 2019. In the year 2020 the derived
result is1.49 which is reflecting that firm has higher current assets than short term liabilities
which shows good credibility to overcome such obligations.
Particulars Formula 2019 2020
Current assets 524 1859
Inventory 23 24
Current liabilities 1225 1249
Quick ratio
Current assets - (stock )/Current
liabilities 0.409 1.469
On the basis of quick ratios' performance for the year 2019 and 2020 it can be stated
that firm has improved its performance to overcome short term liabilities with cash & equivalent
assets.
Efficiency ratios
Particulars Formula 2019 2020
Account receivable 437 433
Sales revenue 757 741
Account receivable turnover Account receivable / sales *365 210.71 213.29
This is reflecting that particular organization takes 210.71 and 213.29 days respectively
to collect due payment from customers which is highly affecting its liquidity position and needs
improvements.
Particulars Formula 2019 2020
Account payable 273 270
COGS 271 274
Account payable turnover Account payable / COGS *365 367.69 359.67
The above outcome is presenting ineffective performance in overcoming due payments.
There is lower efficiency as takes higher duration which is declining its credibility position in
real estate sector.
Gearing ratios
Particulars Formula 2019 2020
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Total debt 4114 5610
Shareholder's equity 9920 8750
Debt-equity ratio
Long-term debt / shareholders
equity 0.415 0.641
This helps in analysing the risk associated with performance of firm that is increasing
as compared to previous period.
KPIs
Key performance indicators provides assistance in measuring performance of
organization in both financial and non monetary aspects. There are different kinds of KPIs such
a revenue growth, profit margin, client retention rate, customer satisfaction, etc so that accurate
insights to make proper judgment.
For evaluating the financial performance paying attention on the financial factors such
as profitability, revenue, etc can be given. On the basis of the conducted assessment it can be
recognized that there is lack of performance in order to generate profitability which is indicating
lower efficiency and reflecting requirement to make changes. There is as well reducing of the
profitability due to decreasing of revenue which is hampering negatively on financial condition
of the organization. This is helpful in understanding that financial performance of the particular
firm is lower as continuously facing the declining trend in turn achieving better understanding to
make relevant medication.
Non monetary aspects such as customer, employee retention, conversion rate, brand
reputation, etc. There are different kinds of objectives which can help the firm to retain better
performance so that higher profitability & sustainability can be achieved. There is lack of
customer retention in the firm which is resulting into lower performance due to declination of
revenue. In addition to this, there is lack of employees performance and conversion rate that is
hampering the performance of particular business which is need to be highlighted as out coming
negatively in turn better outcome offering can be provided. Corporate reputation from the
assessment can be stated that having position of leading firm in the real estate sector which is
predicting company is having good image in the market. On the basis of this, it can be
mentioned that these the few crucial indicator which is showing that firm is having good image
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in market but possessing lack of profitability & financial condition that is highly hampering its
growth & development.
CSR Pyramid
Carroll's pyramid is helpful in analyzing the full responsibilities at four levels such as
economic, legal, ethical and philanthropic. The particular method is helpful in evaluate that how
effectively the firm is meeting its social responsibilities via conducting its operational practice
in the industry. Specified organization is concentrating on gaining the relevant approach to meet
it all responsibilities via taking different kinds of actions. This pyramid is the process in which it
is able to suggest the organization with full responsibility at all the four levels. This pyramid
explains the following stages,
Environmental :
This organization beliefs that the business needs to aim at organization towards behaving
in an environmentally friendly way. This is considered to be the most common form of corporate
social responsibility which this organization needs to consider. Land Security Group Plc will be
able to embrace its environmental responsibility through the following ways,
 Reduction of the pollution, greenhouse gas emission is considered to be helpful for the
business to support the fight against pollution (Yang and et.al., 2022).
 This is helpful for increasing the reliability of the renewable energy for sustainable
resources and recycling the partial recycling of materials.
 The operations of the business should not impact the plantation of trees funds and
research and donate the related causes of the business.
Economic :
It is considered to be the practice of the form for backing all the financial decisions of the
organization. This is considered to be the commitment to the areas which is listed in the
business. This is the reason why the goal of the organization needs to be on building positivity
into the environment, people and society. Better performance of the organization can positively
affect the business (He, Zheng and He, 2022).
Ethical :
The ethical responsibility of the organization needs to be regarding the operation of the
fair and ethical manner. This is considered to be the factor which influences ethical
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responsibilities for achieving the fair treatment of the stakeholders, leaderships, investors,
suppliers and also he customers. It is important for the organization to achieve its responsibility.
Philanthropic :
The focus of the business needs to be on the management such that the business can
ethically and environmentally be friendly as possible. Having philanthropic decision can be the
factor which is helpful for the dedication of the portion of their earnings (Ma and Guo, 2021).
This is organization will be able to more successful if it is able to be environmentally friendly
and also very social in nature. This is helpful for directly relating to the business.
Competitor Analysis
For the analysation of the competitions of the organization porters five forces can be
utilized.
Threat of new entrants :
The threat of new entrants for this business is considered to be the new way of doing
things which puts pressure on UK commercial property trust. This is the factor which helps in
lowering the price strategy, reducing costs and also providing new value proposition to the
customers. This means this organization is able to manage all the challenges and build effective
barrier to safeguarding eh competitive edge.
Bargaining power of suppliers :
The Real estate industry is considered to be the raw material for a numerous supplier as it
helps in decreasing the margins for UK commercial property trust. The powerful suppliers in
this sector make this organization vulnerable to the negotiation of power and extraction of high
prices. Overall impacts of the high supply is the factor which lowers the business profit.
Bargaining power of buyers :
The buyers are in this industry have a lot of demand. They want to pay the least while
demanding the best offerings. This is the reason why the profitability of the organization is
powerful for the customer base in UK commercial property trust. The bargaining power of the
customers is to achieve higher with optimum discount (Montequín and et.al., 2020).
Threat of substitute products or services :
There is always the threat to the organization regarding the substitutes to be the similar to
what the customers needs are in the industry. The substitute of the services of this organization
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can be threat to the organization as there are many online websites which offer these services
and can be a threat to the organization.
Existing competition :
In this industry the organization does face lots of competition in the existing market. This
is considered to be the reason due to which there is decrease in the prices. This decrease in the
prices reduces the profitability of the organization. This is the competition which helps the
business in taking toll on the overall long term profitability.
Balanced Scorecard
The balance score card is the tool which is used for measuring the performance of the
organization in the commercial property dealing industry (The Balanced Scorecard—Measures
that Drive Performance, 2021).
Financial Perspective Customer Perspective
Goals Measures Goals Measures
 Survive in the
market
 Succeed
 Prosper
This can be measured
with the help of the
cash flow of the
organization which
will represent the
inflow and outflow of
the cash which
impacts the growth of
the business.
The sales growth will
be the measurement of
the success for this
business as it will
increase the operating
income.
Being able to increase
the market share of the
 New Services
 Responsive
supply
 Customer
relationship
This business needs to
focus on providing the
customers with new
services related to
privately owned
businesses and other
property related
operations.
The quality of services
provided by the
business needs to be
very effective for the
responsiveness.
Being able to have
better relations with
the customers can help
the organization to
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organization with the
help of increased
Return on equity.
increase the relations
with the customers.
Internal Business Perspective Innovation and Learning perspective
Goals Measures Goals Measures
 Technological
capability
 New Services
This organization
needs to use
technologies for
providing the
customers with better
services to the
customers
(Ardiansyah, 2019).
This organization
needs to enter into
personal property
dealing such that the
business needs are
influenced.
 Technology
leaderships
 Product focus
 Time to market
This is considered to
be the factor which
helps the business to
process the time for
maturity.
The percent opf
products which is
considered to be the
equal for sales be
more than 80%.
The market of this
organization needs to
focus on the areas
which are considered
to be the factor that
influences the
management of the
organization that
impacts their growth
(Anuforo and et.al.,
2019.).
Horizontal Analysis
This is the analysis which is going to help the organization to review the company's
financial statement over the multiple periods for gaining the growth which they require. This
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also explains the analysation of the financial growth which is easy to be spotted as the trend of
the business and growth patterns. For the business it is going to be very important to study the
performance of the organization in the order of sequence for better growth in the organization.
CONCLUSION
From the above conclusion it can be found that the financial aspects of the business
measures the success of the Land Security Group Plc. In this project the Triple Bottom Line is
considered to be the factor which influences the key success factors that is effective with regard
to the financial and non-financial data of the company. The ratio analysis of the organization can
be considered to be the factor which explains the performance of the organization through its
financial interpretation. The KPI of this organization shows the sales performance of this
organization which impacts the growth level through indication of the organizational operations.
CSR Pyramid is a factor which explains the key practices that the business needs to focus on for
better decision-making. The balance score card approach explains the essential requirements that
are needed to be met for the business.
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REFERENCES
Books and Journals
Alshehhi, A., Nobanee, H. and Khare, N., 2018. The impact of sustainability practices on
corporate financial performance: Literature trends and future research
potential. Sustainability. 10(2). p.494.
Anuforo, P.U., and et.al., 2019. The Implementation of Balance Scorecard and Its Impact on
Performance: Case of Universiti Utara Malaysia. International Journal of Accounting &
Finance Review. 4(1). pp.1-16.
Ardiansyah, R., 2019, November. Penggunaan Metode Balance Scorecard Untuk Mengukur
Kinerja Pekerjaan Pada PT. Bangun Cipta Karya Pamungkas (PT. BCKP). In Prosiding
Seminar Nasional Darmajaya (Vol. 1, pp. 78-87).
Birkel, H. and Müller, J.M., 2021. Potentials of industry 4.0 for supply chain management within
the triple bottom line of sustainability–A systematic literature review. Journal of Cleaner
Production. 289. p.125612.
He, Z., Zheng, L. and He, S., 2022. A novel approach for product competitive analysis based on
online reviews. Electronic Commerce Research, pp.1-32.
Hristov, I. and Chirico, A., 2019. The role of sustainability key performance indicators (KPIs) in
implementing sustainable strategies. Sustainability. 11(20). p.5742.
Ma, R. and Guo, S., 2021. Applying “Peeling Onion” approach for competitive analysis in
online scheduling with rejection. European Journal of Operational Research. 290(1).
pp.57-67.
Montequín, V.R., and et.al., 2020. A Bradley-Terry model-based approach to prioritize the
balance scorecard driving factors: The case study of a financial software factory.
Applications of Operational Research and Mathematical Models in Management, p.107.
Yang, J., and et.al., 2022. Social media data analytics for business decision making system to
competitive analysis. Information Processing & Management. 59(1). p.102751.
Online
The Balanced Scorecard—Measures that Drive Performance, 2021[Online]. Available through:
<https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2>
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