Measuring Success: Tools and Techniques for Evaluating Landsec's Performance

Measuring Success

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Triple Bottom Line......................................................................................................................3
Ratio analysis..............................................................................................................................4
Key Performance Indicators........................................................................................................6
CSR pyramid...............................................................................................................................7
Competitors analysis...................................................................................................................8
Balanced scorecard......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Measuring success is very essential to evaluate the working efficiency and capability of
the company. The reason underlying this fact is that when the company will not be successful
then it is not worth running. Hence, with help of the different performance evaluation tool,
company can measure its success and profitability. This will provide with the base to the
company that how they have to take decision in order to grow and develop. The present case
study is based on Landsec that is Land Securities Group which is the largest investment and
property development company found in 1944 and is headquartered in UK. The current study
will outline the use of different types of the tools like ratio analysis, KPI, Balanced scorecard and
others in order to evaluate the working and success rate of the company.
MAIN BODY
Triple Bottom Line
Triple bottom line refers that companies should be committed in focussing on social and
environmental concerns same way they emphasis on profits. The triple bottom line is being
defined as a framework which assist company in maintaining the social and environmental issues
relating to the company along with its profitability. This TBL is being used by Landsec in order
to manage the three important aspect of business that is planet, profit and people. For being
successful, company need to work on these three aspect in proper and effective manner. Landsec
complies with all these three things in the following manner-
Planet
The planet includes the steps which the company undertakes in order to keep the
environment safe and good. This is necessary because of the reason that the company operates in
external environment and it is necessary for business to work in better condition (Our
sustainability strategy, 2022). With respect to protection of environment, Landsec is that
company is focusing on minimising the negative impact of company over the environment.
Along with this, the company is also trying to improve the resilience and reduce other cost.
People
This involves the fact that how much active the company is present in order to socially
help the people. Along with this, it involves keeping all stakeholder of the business happy and
satisfied. Hence, for this Landsec implement different types of strategies for keeping the

stakeholders happy like gender equality, ensuring proper health and safety of employees and
others. Along with this, company provides for different job opportunities to people and it will
improve the working efficiency of company.
Profit
This is the most important and common aspect for which the business is working. Hence,
Landsec is continuously working in order to improve the profitability of the business. Any
company operates with the aim of earning profit only and this is important for continuous growth
and development (Guo, 2019). For this Landsec provides good services to consumer so that they
can earn profit and this will improve the working efficiency of the company.
Ratio analysis
Particulars Formula 2020 2019
Current ratio Current assets/current liabilities 1.49 0.43
Current Assets 1859 524
Current Liabilities 1249 1225
Quick Ratio Quick assets/current liabilities 1.47 0.41
Quick Assets 1835 501
Current Liabilities 1249 1225
Debt to Equity ratio Debt/equity 0.641 0.415
Total Debt 5610 4114
Total Equity 8750 9920
Interest Coverage Ratio
{(Earnings before interest and
taxes (EBIT))/(Interest
Expense)} 3.19 3.14
EBIT 345 358
Interest expense 108 114
Revenue 741 757
COGS 274 271
Operating Expenses 122 128