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

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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