BUSM60002: Analyzing Land Securities Group PLC Performance

This report critically analyzes Land Securities Group PLC's performance from a stakeholder perspective, utilizing performance management tools such as the Triple Bottom Line, ratio analysis, KPIs, CSR Pyramid, competitor analysis, and the Balanced Scorecard. Financial statements are differentiated based on calculated ratios including liquidity, profitability, solvency and turnover. The KPIs of Land Securities Group PLC are explained with respect to social values and safety. The Corporate Social Responsibility Pyramid of TESCO is defined with its economic, legal, ethical and philanthropic responsibilities. Competitors of TESCO are evaluated and the Balance Scorecard of TESCO is elaborated considering customer perspective, shareholder expectations, business activities and value increment.

MEASURING
SUCCESS

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Elaborate Triple Bottom line of Land Securities Group Plc....................................................3
2.Differentiate the financial statement based on the ratios calculated:........................................3
3. Explain and elaborate the KPIs of Land Securities Group Plc................................................6
4. Define the Corporate Social Responsibility Pyramid of TESCO............................................7
5. Evaluate the competitors of TESCO........................................................................................8
6. Elaborate the Balance Scorecard of the TESCO.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Corporate Social Obligation is a self-direction for climate, economic and online work.
These ensure that the enterprise fulfills the responsibilities of the association. The association
concludes its corporate social responsibility activities based on its business activities and what
those activities mean for the climate and society. This report contains data about Land Securities
Group PLC. The report contains a proportional examination of associations, and key
performance indicators help identify the regions where companies purchase the most. It also
contains the Corporate Social Responsibility Pyramid, Asset Reporting Scorecard and the
Organization's Competitor Exam (Areiqat and et.al., 2019).
MAIN BODY
1. Elaborate Triple Bottom line of Land Securities Group Plc.
The association weakens moral standards, it creates a new and incredible experience for
the individual. The association is reducing environmental change and making further efforts to
address local imbalances. The association also applies to associations whose supportability is
meaningful below,
Providing jobs opportunities- By providing more numbers of jobs develop the living standard. It
is useful in hiring more skilled and knowledgeable employees for the company or firm. Goodwill
of the company help the organization to increase the accountability and authority (Elliot and
Lindblom., 2018).
Effective utilisation of Natural Resources- It is important to utilize more number of
natural resources because it effect directly to its operations on the global environment. The firm
have to take strong decision making to better living on earth.
New Ideas and Innovation – To develop and innovate the available area more useful and
environment friendly which is helpful in the business environment to provide more value to the
customers.
2.Differentiate the financial statement based on the ratios calculated:
Liquidity Ratio = It shows the liquidity position of the company. It helps to shows the
capacity of the company to recover their short term obligations which include current assets of

the firm and current liabilities of the creditors. There are two types of liquidity ratio are as
follows: -
Current Ratio = It is ration between current assets and current liabilities (Brassell and
Boschmans., 2019).
Current Ratio = Current Assets / Current Liabilities
In year 2019 = 524 / 1225
= 0.43: 1
In year 2020 = 1859 / 1249
= 1.49: 1
Interpretation: In the above liquidity ratio two-year current ratio are showing, in 2019 the ratio is
0.43:1 and in 2020 the ratio is 1.49:1. Ideal ratio of current ratio is 2:1, it means that the ratio of
2020 is more effective than 2019.
Liquidity Ratio = Liquidity ratio is used to pay immediate current liabilities.
Liquid Ratio = Liquid Assets / Current Liabilities
In year 2019 = 501 / 1225
= 0.41: 1
In year 2020 = 1835 / 1249
= 1.44: 1
Interpretation: -
In the above calculation the liquidity ratio of two years is included in which the year 2019 ratio is
0.41:1 and 2020 ratio is 1.44:1. By analysing both year ratio 2020 ratio have more liquidity than
2019.
 Profitability Ratios - It is useful in measuring the capabilities of a company in making
sufficient profit. Following are the type of profitability ratio:
 Gross Profit Ratio – Gross profit ratio are calculated in order to represent the operating
profit of an organization.
Gross Profit = (Gross Profit/Net Sales) * 100
In year 2019 = (-40 / 757) * 100
= (-0.05284) * 100
= -5.28 %
In year 2020 = (-690 / 741) * 100

= (0.9311) * 100
= -93.11 %
Interpretation -
According to the above situation of the gross profit ratio the company is continuously suffering
from losses and further increased the losses in next year 2020.
 Net profit Ratio – It is used to identify the overall profitability of an organisation after
deduction of cash and non-cash expenses (Shankar, Punia and Ilavarasan., 2021).
Net Profit Ratio = (Net profit/Net sales) *100
In year 2019 = (-123 / 757) * 100)
= (-0.1624) * 100
= -16.24 %
In year 2020 = (-119 / 741) * 100)
= (-0.1605) * 100
= -16.05 %
Interpretation: -
In the above firm calculation shows that the organization net profit ratio is adverse and also
increasing in the next financial year. It indicates that the operating cost of the firm is high which
effect the firm to suffer losses
 Solvency Ratios – It help the company to ascertain whether a company is solvent and
well capable of paying off its debts obligation or not. There are two types of solvency
ratio are as follows -
 Debt Equity Ratio – It is used to calculate the leverage of an organization. It is
identifying the ratio between total debts and shareholders fund (Borgogno and
Colangelo., 2020).
Debt-Equity ratio = Total debts / Shareholders Fund
In year 2019 = 2889 / 9920
= 0.29 Times
In year 2020 = 4361 / 8750
= 0.50 Times
 Interest coverage Ratio – It helps to determine the how easily a company can pay the
interest on its outstanding debts. It is a debt and profitability ratio.

Interest Coverage ratio = Earnings before Interest and taxes / Interest expense
In year 2019 = 40 / (10)
= -4
In year 2020 = 690 / (165)
= -4.18
Interpretation: -
In the above solvency ratio defines that the firm uses more equity than debt which shows that the
ratio of debt equity ratio in 2020 is increased by 0.21 times (Bollaert, Lopez-de-Silanes,and
Schwienbacher., 2021).
 Turnover ratio – This ratio used to identify how efficiently the financial assets and
liabilities have been used for the purpose of making Revenues. It includes inventory
turnover ratio that are as follows
 Inventory Turnover Ratio – It is used to determine how much time period the company
used to convert its inventories into sales.
Inventory Turnover Ratio = Cost of goods Sold / Average Inventories
In year 2019 = 271 / 23
= 11.78 Times
In year 2020 = 274 / 24
= 10.29 Times
Interpretation: -
According to the above calculation, it shows that the firm is involved in the business of property
which determine that the property available is the stock of the organization. In 2019 the
inventory turnover ratio is 11.78 times and in 2020 turnover ratio is 10.29 times, it indicates that
the inventory turnover ratio of the organization is decreases in 1.49 times.
3. Explain and elaborate the KPIs of Land Securities Group Plc.
Areas which are observed and considered for the purpose of improvement which are to be
worked upon in future. These are studied by the research and development department in order to
know the areas where organisation is already working or needs to work in the future.
Social Values: The year 2020 is the first year where the Land Securities Group’s assurance
has passed the social values of the firm. The organisation has made process to control the

activities related to support and control the KPIs of the company. The third party data providers
help in underlying the assumptions and proxy values which are associated with the values of the
firm. This field is comparatively very vast thus the organisation can consider further more
improvements and value addition to this field.
Safety: Organisation outsource the safety determent to the other parties which take care of
the online compliance system of the organisation. Organisation needs to considers reviewing its
internal quality to gather the personal information regarding the company in order to know the
areas where the organisation needs to work (Elkhal., 2019).
4. Define the Corporate Social Responsibility Pyramid of TESCO.
Corporate Social Responsibility is mainly comprising of Four levels of CSR which
includes Economic, legal, Ethical and Philanthropic Responsibility. These responsibilities are
explained below,
Economic Responsibility: It is the lowest level of pyramid which explains about the
profitability of the business. It includes activities which are profitable or the organisation needs
to make them profitable. In the absence of this level the organisation will not able to generate
profits and employees will lose their job in order to maintain the jobs of the employees. A
company being in profit.
Legal Responsibilities: It the second tier of responsibility which an organisation needs to
comply with in order to properly run their business operation properly. Organisation needs to
follow various laws, company law, competition law, tax regulations. Company needs to adhere
these laws and adhere and legally responsible for the actions of the company.
Ethical Responsibilities: This pyramid is described at the third level of pyramid which explains
about the ethically behaviour and ethical code of conduct which needs to be followed by the
organisation. This also explains the morale of the company and its activities towards its
employees and general people. In the following case the company is working with the traditional
labours intensive policy in order to provide jobs to the jobseeker.
Philanthropic Responsibility: At the top level the smallest section of the pyramid, businesses
needs to work upon their carbon emission because businesses are largely dependent on the
machinery. Thus in the following example the company is working with the labour intensive
technology which reduces the carbon emission from the business process (Friedrich., 2021).

5. Evaluate the competitors of TESCO.
TESCO is a very large grocery retail shop which is indulged in providing ready to use
product to its customers. The main competitor of the company is ASFA, Morrison’s and
Sainsbury.
ASDA is an organisation which was a subsidiary of Walmart which was purchased by
Mohsin Issa and Zuber and TDR capital in the year 2020. The organisation is working on more
than 635 retail shops and 584 supermarkets. It also captures significant amount of market in the
UK marketplace. It basically deals at the low prices of the product which makes it more
competitive in the market. The organization is also further developing its store formats and
online transaction channels to reflect growing customer preferences. ASDA is also working to
bring health benefits to private label programs (Hui, Manaf and Shakri., 2019).
Sainsbury is the among the first supermarkets of the UK which captures most of the market
of UK. It is located in 1418 locations and it works on online and offline stores. It mainly works
on its high quality products which have made its space in the market. To sustain in the market,
the company has used different ways of expanding and merchandise different categories and
promoting its services.
Morrisons operates more than 50 convenience stores and 492 supermarkets. Morrison
works in 18 food processing offices, 8 grant habitats, and connects with ranchers to source
poultry, meat and produce. Morrison is trying to drive efficiency upgrades alongside its
upwardly integrated structure while reducing common costs. Adopting a more adjusted approach
to the limited time assessment is also an important part of the basic cost investigation. Adopting
a more adjusted approach to ad hoc assessments is also an important part of basic cost
investigations. Morrison has embraced a strict capex plan, with most of the new store openings
featuring a humbler accommodation design.
6. Elaborate the Balance Scorecard of the TESCO.
Balanced Score card allows manager to considers Four aspects of the business. These
scorecard includes answers of four question namely, how to customer sees company, what
shareholders looks in the company, at which activity business is excel at and how to increase the
value of credit and improve its activities (Kuhn., 2020).
Some organizations have proactively adopted decent scorecards. Their initial contact with
the scorecard indicated that it met some management requirements. First, the Scorecard

combines, in a single management report, a number of distinctly different components of an
organization's brutality program: being customer orientation, reducing reaction time, committing
to quality, emphasizing collaboration, reducing new project initiation time, and Supervise for as
long as possible. A sound scorecard contains monetary measures that account for the
consequences of previous actions. Furthermore, it complements monetary measures with
functional measures of consumer loyalty, inward circularity, and the development and
improvement of associations to exercise functional measures, which are the drivers of future
monetary execution. While noting and working with many organizations, we observed that
senior executives did not rely on one set of measures to reject another. They understand that no
single metric can give a clear presentation goal or focus on fundamental areas of the business.
Regulators need a fair presentation of currency and functional measures.
For example, organizations can reduce presentation time in two completely different ways: by
managing new project presentations or by only offering projects that are incrementally different
from existing projects. Scheduling expenditures can be reduced by reducing the scheduling time
or increasing the size of the bundle. Additionally, creation results and first pass rates may rise,
but the increment may be due to a mix of projects changing to more prescriptive, easy-to-deliver,
but lower-edge projects (Yaksick., 2019).
CONCLUSION
From the above report it is concluded that it is very important for the business organisation
to take care of the cli8matic conditions in order to conduct various activities so that they are able
to attract customers. There are various ways in which the success of the enterprise can be
measures. The financial statement of the company which is been calculated depicts that the
company has profits which can be used for the further investment in order to have growth and
development of the company. The Tesco need to adopts various strategies such as corporate
social responsibility in order to gain competitive advantage and increase market share. There are
various responsibilities of the company towards the environment such as legal responsibility,
ethical responsibility and economic responsibility. There are various measures which can be used
by the by the company in order perform the activities in an effective manner and increase
productivity. The balance scorecard can help the company in measuring the performance and
improve accordingly.

REFERENCES
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