Financial Performance and Strategic Decisions of Scottish Power

Economic and financial
management

INTRODUCTION
Finance and economy are inextricably interwoven. Financial management is concerned with
financial management in order to attain organizational objectives. Economics is concerned with
the production, distribution, and consumption of things. Humans and control of resources are the
subject of modern economics. Economics and financial management is a discipline of study that
concerns with resource shortages and its better utilization. Financial management is concerned
with managing an organization's money in a very manner that it results in greater efficiency and
income. One such report offers information on the Scottish firm, which is based in Glasgow,
Scotland. This firm specializes on providing fresh clean renewable power. It aims to create
energy in a sustainable form that may be produced many generations organically and lessens the
influence of toxic substances on the ecosystem. In this report consist of financial performance of
company after the analysis of financial ratios and analysis trends of company. Along with
explain three key strategic decisions and carry out financial analysis.
MAIN BODY
Evaluate the financial performance and position of company
Scottish Power is the nation's biggest energy corporation, with its headquarters in
Glasgow. It specialises in energy, sustainable sources, power, generating, maritime, offshore,
wind, electric car recharging, and hydrogen. It is a public corporation that invests heavily in the
renewable energy industry on a routine basis. With implementing numerous new energy
generating methods, a company is capable of meeting the changing demands of its customers
while also focusing on durability by increasing the air quality index of certain places. Its goals
for the future years are to increase customer service while remaining a leadership in the
renewable energy industry.

Figure 1Revenue of Scottish power, 2022
In 2021, Scottish Power UK Plc recorded annual profit of 5.35 billion British pounds, the
largest amount since 2015. This was a 3.6 percent increase in interest rates year. Scottish Power's
net income that year was 78 million British pounds. Scottish Power is one of the UK's main
energy providers.
Economy impact on Scottish power: Scottish Power Renewable (SPR) was able to illustrate the
broader advantages of expansion to a broad range of stakeholders thanks to a systematic and
impartial analysis of economic effect of wind energy. SPR had achieved the milestone of
installing more than 2GW of electricity generation capacity. SPR realized the need of investment
in onshore wind energy for the economic advantage of Scotland and the remaining of the UK.
SPR requested us to examine the UK, Scotland, and regional (south west Scotland) financial
gains generated by eight wind turbines completed in 2016 and 2017. The research was done in
collaboration with Steve Westbrook, an analyst who specialized in determining the financial
consequences of construction projects.
Raising the country's proportion of offshore wind is predicted to offer economic
advantages. In this research, diverse supply model - based techniques – Input-Output (IO) and
Equilibrium Model Balance (CGE) – have been used to calculate the theoretical economic
effects on Scottish from both the design and maintenance of the scheduled increment in wind