Measuring Success: Techniques for Evaluating Performance of Land Security Group PLC

This report discusses the different techniques for measuring success of Land Security Group PLC, a leading commercial property dealing establishment in the UK. It covers triple bottom line method, ratio analysis, KPIs, CSR pyramid, competitive analysis, and balanced scorecard. The report highlights the need for the company to improve its financial performance, consumer relationships, and market survival.

MEASURING SUCCESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Triple Bottom Line Method........................................................................................................1
Ratio Analysis.............................................................................................................................2
KPI's............................................................................................................................................5
CSR Pyramid ..............................................................................................................................6
Competitive Analysis..................................................................................................................7
Balanced Scorecard.....................................................................................................................8
Horizontal Evaluation...............................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Measuring success is a topic which refers to having an ability to measure the complete
and detailed performance evaluation of any establishment with the help of utilizing diversified
tools and techniques in order to get appropriate and reliable results in return. This particular
concept is highly significant as it assists in giving emphasis over calculating the success in order
to get fair identification of the company performance that can be exerted in order to make
strategies accordingly (Aliyev, Jain and Agarwal, 2018). The report will highlight the aspects in
detailed manner by choosing Land Security Group PLC into consideration which is one of the
leading commercial property dealing establishment based in the UK.
The study will elaborate the aspects of measuring success of the firm by paying attention
towards the application of specific techniques for instance the triple bottom line, KPI's ratio
analysis of the firm, CSR pyramid, balance scorecard, competitive analysis along with
horizontal evaluation in detailed manner. Moreover, it will help in order to provide aid in
conducting, financing and evaluation of non-monetary things that provides better understanding
related to the topic into considerable ways.
MAIN BODY
Triple Bottom Line Method
This is among the most important concept that enables the firm in order to measure the
environmental and social impacts with the help of considering financial performances of the
firm within the external environment in front of their competitors. This help in order to pay
attention over profit margins, planet as well as people (Dodd, 2019). In order to identify the
public presentation in which evaluation matters, the Land Security PLC performances are
mentioned below:
 People: This is one of the component that exists within this method according to which it
helps in order to understand business entity societal commitments towards the people.
The Land Security PLC has certain important stakeholders which includes community,
investors, partners, consumers, etc. With the help of this specific information it has been
identified that company is taking relevant and appropriate actions in order to engage
themselves with their stakeholders which positively impacts the estbalishment in
considerable manner.
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 Profits: This component is considered to become the most important aspect for any
business entity. Companies generate profit margins for their stakeholders so that they
share great amount of accountability in order to attract and retain their consumers which
generates profitability. From the assessment, it has been evaluated that company is
performing poor ways and requires certain improvements as it impacts the stakeholders
in most drastic and negative manner.
 Planet: In this specific method, it has been identified that giving emphasis and
generating positive impacts over the planet is greatly significant for the firm. The
company operates into real estate business where it extremely able to give emphasis over
attaining the actions such as reduction in carbon footprints in order to obtain better
performance of employees (Wu and et.al., 2019). This influences the external
environment in optimistic manner and helps in meeting the corporate social
responsibilities which assist in improving the brand value of the establishment.
On the basis of complete analysis, it has been identified that the company financial
performance is ineffective and requires high amount of focus in order to gain appropriate
implementation of strategies that enables them to improve the actions so that higher amount of
profit margin can be achieved. This shows the lack of sustainable practices implemented within
the actions that help in order to influence the success rate of the firm that is pertaining towards
the poor expansion in particular sector.
Ratio Analysis
Profitability Ratio
Particulars Method 2019 2020
GP -40 -690
Sales revenue 757 741
Gross profit ratio GP/Sales*100 -5.00% -93.00%
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As per the given information it has been identified that profitability is derived in negative
terms. This particular thing indicates company losses that shown disposed trends enhances in
comparison to previous year i.e. 2019.
Particulars Method 2019 2020
NP margin -123 -837
Sales revenue 757 741
Net profit ratio NP/Sales*100 -16.00% -113.00%
Over the basis of above represented calculation, it has been interpreted that the high level
of net losses has been generated which requires huge amount of improvement into company
strategies and actions. It has been derived from the two consecutive years that -16% and -113%
shows upward trend in loss conditions. On the basis of this, it has been determined that the
requirement of improvements takes place by considering this specific condition.
Liquidity Ratio
Particulars Method 2019 2020
Current assets 524 1859
Current liabilities 1225 1249
Current ratio CA/CL 0.43 1.49
From the given computation, it has been analysed that Land Security PLC posses lower
performance level than ideal ratio in year 2019. In year 2020 the derived result is 1.49 which
reflects that company share high amount of current assets and short term liabilities which
expresses good amount of credibility ratio to overcome from specific obstacles.
Quick Ratio
Particulars Method 2019 2020
CA 524 1859
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Stock CL 23 24
Quick ratio CA-(inventory)/ CL 0.41 1.47
On the basis of above presented quick ratio, it has been stated that the company improve
their performance level to overcome from short term liabilities with the help of equivalent assets
and cash.
Efficiency Ratio
Particulars Method 2019 2020
Account receivables 437 433
Sales revenue 757 741
AR turnover AR/sales*365 210.71 213.29
The above calculation reflects that Land Security PLC took 210.71 and 213.29 days
respectively in order to gather due payments which greatly affects the liquidity position and
require improvements.
Account payable turnover
Particulars Method 2019 2020
Account payable 273 270
Cost of goods sold 271 274
APT Account
payable/COGS*365
367.69 359.67
The above outcome shows inefficient performance level in overcome from due
payments. These shows lower efficiency and take higher duration which shows declining
credibility position in this real estate sector.
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Gearing Ratio
Particular Method 2019 2020
Total debt 4114 5610
Shareholders equity 9920 8750
Debt equity ratio Long term
debt/shareholders
equity
0.42 0.64
This enables the company to evaluate the risk that is being associated with the overall
performance level of the firm that is continuously increasing as compared to previous years.
KPI's
Key performance indicators assist in order to provide assistance in order to measure
performances of the establishment both in financial and non financial terms. Basically, there are
diversified types of key performance indicators presented which includes profit margin, client
retention rate, revenue expansion, consumer satisfaction, etc. so that appropriate insights will be
available in order to provide proper justice (Henry, Buyl and Jansen, 2019).
In order to examine the fiscal performance of the firm i.e. Land Security PLC pays
complete attention over the financial factors which include profitability and revenue margin of
the firm. On the basis of conducted assessment it has been identified that due to lack of
performance while generating profitability shows great amount of low efficiency and reflect
requirements to make necessary changes. The profit margins also gets reduced because of
decrease in the amount of revenue which affects the firm in drastic manner along with over their
financial conditions of the establishment. This is helpful in order to understand financial
performance measures of that specific firm as it constantly faces declining trends in turn to
achieve best understanding that is being relevant to make appropriate medication for the firm.
In order to identify non-monetary aspects of the firm which involves consumers,
conversion rate, employee retention, brand image, etc. there are diversified range of objectives
that allows the firm to retain better performance level in order to generate higher profitability
and sustainability. The management of the firm is unable to retain their consumers and thus
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resulting into lowering down the performance due to declined revenue. Moreover, the employees
are also having lower performance level, and conversion rate which also hampers the overall
functioning of the establishment in the market space (Song and et.al., 2018). After evaluating
their corporate reputation, it has been evaluated that in order to get leading position in real estate
sector the company needs to create or build good image by adopting appropriate strategies for
the same. Over the basis of this, it can be mentioned that these are the few and major indicators
for the firm which shows that in order to get good brand image in the competitive world,
company should adopt certain changes because current conditions possesses lack of profitability
and fiscal conditions that highly hamper their expansion and overall development.
CSR Pyramid
This particular pyramid is highly helpful in order to analyse detailed accountability at
four different levels which are based upon the legal, ethical, economic and philanthropic pillars.
This specific method is highly beneficial in order to calculate the effectual ways through which
the firm will meet their social responsibilities with the help of conducting their operational
practices within real estate industry (Wannes and Ghannouchi, 2019). Land Security PLC
concentrated over gaining the appropriate approach in order to meet all the responsibilities by
taking diversified actions. This model is a process through which the company will able to take
complete responsibility at all four levels according to which each step states that:
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 Economic: As per this stage, companies have to fulfil the accountability of economic
nature as they have responsibility in order to produce effective services and goods that
society want and sell them in most profitable ways. Here, the primary purpose of the firm
is to produce and sell goods for profit generation.
 Legal responsibilities: It has been expected from the firms that they should fulfil all the
legal requirements of the society (Pope and et.al., 2018). It is expected from them that
their policies are highly complied with all the rules and regulations and fulfil all security
standards in context of their offered services.
 Ethical accountability: This step indicates the expected behaviour of companies. It is
significant as society is not at all ready to tolerate unethical behaviour of companies and
hence the decisions of the firm always taken after considering the consequences of their
actions.
 Philanthropic responsibility: this shows discretionary actions taken by the companies
against fulfilment of social expectations. This will involve certain benefits to their
employees as well as society people which includes extension of employees, employee
training, charitable contribution, etc.
Competitive Analysis
In order to evaluate the competitors of the Land Security PLC, the concept will be
explained with the help of porters five force:
 Threat of new entrants: The threat of new entrants for real estate business is considered
to become the advanced way of doing things which have the capability to put pressure
over the UK commercial property trust. This factor assist in lower down the price
strategy and also provide advanced value proposition to their consumers. This enables
the firm to manage all their challenges and create effective barrier to safeguard towards
competitive edge.
 Bargaining power of suppliers: The real estate industry is stated as a raw material for
suppliers as it assist in decreasing the margins for UK commercial property trust. The
significant suppliers within this sector make company vulnerable in order to negotiate
power and extract high prices.
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 Bargaining power of buyers: The buyers have a lot more demand in this sector, but
they want to spend less while demanding best offerings (Pelikánová and Hála, 2021).
This makes the profitability of the firm highly competent for creating consumer base.
Thus, it is higher in nature.
 Threat of substitute products and services: There is always a threat to the firm
regarding substitute products available within the market space (Malagueño, Lopez-
Valeiras and Gomez-Conde, 2018). The services provided by similar kind of companies
can generate threat to the firm as there are various online facilities available that provides
similar kind of services to them.
 Existing competition: In this particular sector, company have to face a lot of
competition and this is the major reason of reduced prices that are being offer to the
consumers. This is the basic strategy for business entities in order to generate long term
profits.
Balanced Scorecard
It is a type of tool or technique which enables an enterprise to measure the performance
level of the company into the commercial property dealing industry.
Financial Perspective Consumer Perception
Goals Measures Goals Measures
Expand Being able to enhance
the market share of the
firm with taking
assistance in increased
return on equity.
Consumer relationship Being able to create
better relationships
with consumers help
the firm to enhance
consumer
relationships.
Win Sales expansion will
become the measure
through which success
of the firm measured
as it generates
Responsible supply The quality of the
offered services
required to be
effective.
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operating income
(Grimstad, Glavee-
Geo and Fjørtoft,
2020).
Market survival Cash flow will help
the firm to measure
their survival in the
market area through
which the inflow and
outflow of cash will be
measured that shows
growing impact of the
business.
New and advanced
services.
The company required
to focus towards
providing new
services to their
consumers related to
privately governed
businesses. It also
includes other
property related
operations as well.
Internal business perception Innovation and learning perception
Goals Measures Goals Measures
Innovative services This is required by
establishments in
order to enter into the
personal property
dealings so that the
business requirements
are getting influenced.
Time to market the
product and offered
services.
The market area in
which the company
operates needs to be
considered and
become a factor that
highly influences the
overall management
and administration of
the enterprise that
affects the expansion
and growth.
Technological
capabilities
The company required
to adopt advanced
technologies in order
Technology leadership
along with focusing
This is considered to
be the factor which
assist the business
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to provide appropriate
goods and services to
their customers.
over the product. entity to take time in
order to achieve
maturity level within
deals (Rafiq and et.al.,
2020). Moreover, the
percentage of goods
and services are
considered to become
equal for sales by
more than 80%.
Horizontal Evaluation
This is a type of analysis which shows and represents by reviewing company financial
statements over multiple period in order to gain expansion and growth that is being highly
required by the establishment (Yin and et.al., 2022). This also enable the firm to identify their
financial growth which is easily spotted and identified as it shows the latest trend related to
business and growth patterns. For business entities, it is going to be highly significant to study
the performance level of the firm in sequential order for the better growth and expansion of the
business entity.
CONCLUSION
From the above report, it has been concluded that financial concepts of business
enterprise enable to measure the success rate of the Land Security PLC. In the above mentioned
and explained study, the Triple bottom line had been considered to become the major factor
which have the capability to influence the key success measures which is highly appropriate
with regard to financial and non-financial data of the establishment. The ratio evaluation of the
firm can be considered to become the significant factor which illustrate the performance level of
the enterprise with the help of their financial interpretation.
The key performance indicator of Land Security PLC highlight the sales performance
which impacts the growth level through indicating company operations. CSR pyramid helps to
elaborate the concept of factor which explains the key practices that the business requirements
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needs to focus over better decision-making. The last one was the balance score card approach
which successfully explains the essential requirements that are highly required to be met for the
betterment of the business.
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REFERENCES
Books and Journals
Aliyev, A., Jain, R. and Agarwal, V., 2018. Digital business KPIs: Defining and measuring
success.
Dodd, J., 2019. Competency or capacity: Measuring librarians’ potential for success. Journal of
Library Administration, 59(6), pp.684-692.
Grimstad, S.M.F., Glavee-Geo, R. and Fjørtoft, B.E., 2020. SMEs motivations for CSR: an
exploratory study. European Business Review.
Henry, L.A., Buyl, T. and Jansen, R.J., 2019. Leading corporate sustainability: T he role of top
management team composition for triple bottom line performance. Business Strategy
and the Environment, 28(1), pp.173-184.
Malagueño, R., Lopez-Valeiras, E. and Gomez-Conde, J., 2018. Balanced scorecard in SMEs:
effects on innovation and financial performance. Small Business Economics, 51(1),
pp.221-244.
Pelikánová, R.M. and Hála, M., 2021. CSR Unconscious Consumption by Generation Z in the
COVID-19 Era—Responsible Heretics Not Paying CSR Bonus?. Journal of Risk and
Financial Management, 14(8), p.390.
Pope, S. and et.al., 2018. The pyramid of nonprofit responsibility: The institutionalization of
organizational responsibility across sectors. VOLUNTAS: International Journal of
Voluntary and Nonprofit Organizations, 29(6), pp.1300-1314.
Rafiq, M. and et.al., 2020. Impact of a balanced scorecard as a strategic management system tool
to improve sustainable development: measuring the mediation of organizational
performance through PLS-smart. Sustainability, 12(4), p.1365.
Song, G. and et.al., 2018. KPI/KQI-driven coordinated multipoint in 5G: Measurements, field
trials, and technical solutions. IEEE Wireless Communications, 25(5), pp.23-29.
Wannes, A. and Ghannouchi, S.A., 2019. KPI-Based Approach for Business Process
Improvement. Procedia Computer Science, 164, pp.265-270.
Wu, K.J. and et.al., 2019. Building sustainable tourism hierarchical framework: coordinated
triple bottom line approach in linguistic preferences. Journal of Cleaner
Production, 229, pp.157-168.
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Yin, F. and et.al., 2022. Comprehensive evaluation of gas production efficiency and reservoir
stability of horizontal well with different depressurization methods in low permeability
hydrate reservoir. Energy, 239, p.122422.
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