Land Securities Property Group Essay Example | Topics and Well Written Essays - 2000 words

Land Securities Property Group - Essay Example Investors often went for choosing commercial properties in place of bonds as investments because it offered very good return. Soon after 2007, this lucrative area of investment really became a nightmare zone for investors. The real estate industry faced setbacks due to globalisation, change in the economic scenario, recession, and sub-prime mortgage crisis. The property prices fell up to 50 percent. The commercial property industry revived by 2009 but the revival was not constant. There no stability in this industry anymore. The profits and losses in the real estate industry have become unpredictable. Moreover, the risk involved in investing in commercial property also pulled back the investors from such investments (Pickup & Derbyshire, 2010, p. 259-263). The economic downturn affected all the countries round the world. The intensity may be different but the dropping sales figures and decreasing revenue has been the scenario for most of the countries. The shops remained empty and th is further affected the property owners dealing in commercial property business. Many banks and companies declared themselves insolvent and filed for bankruptcy. In the backdrop of such economic scenario, we will analyse the position of the Commercial real-estate industry. Land Securities Group is one of the major players in the commercial property Industry in United Kingdom. Though the balance sheet of the company is showing positive results, but the market is not. The company is big and the capital base of the company is strong. The retail industry is facing huge losses And Retail giants such as Game, HMV or other super markets are have empty shops. In the study the analysis of the company Land Securities Group, is done keeping in mind the objectives behind the analysis: To study the competitive advantages and Strategies of Land Securities To analyse the complete external and internal environmental condition of the company. To see the status of its competitors To make projections regarding the future prospects of the commercial property Industry. Company Profile Land Securities Group is one of the largest commercial property companies in United Kingdom. It came into existence in the year 1944. Their main area of business is to develop shopping centres, retail shops and warehouses, offices and other commercial buildings. They are into maintenance, development, repairing of the property in both public and private sectors. Land Securities group is also into development of the urban community. For this purpose it has planned a multi-billion development program. Land Securities has a total of ? 4.9 billion of retail portfolio value. It owns more than 24 shopping centres and 19 retail parks. About ? 20.6 million sq. ft. of retail accommodation is developed by land securities group. The company is listed in London stock exchange. It has an operating income of ? 1244.1 million in 2011. Land Securities group also provides employment to more than 700 people. The compa ny has received several awards. It has received the Landlord of the year award, BCSC Gold Awards for retail Town Scheme and also National Property Company of the year award in 2011 (Landsecurities, 2012). Environmental Analysis PEST ANALYSIS PEST Analysis is mainly done to study the external environment for the company. Land Securities group is a company mainly situated in UK, which is going through its longest

Consequences of a Fall in the Global Price of Oil Coursework

Consequences of a Fall in the Global Price of Oil - Coursework Example Most economists believe that since oil is associated with so many products any change in its price have a trickle-down effect or a chain reaction affecting the prices of many commodities and/or affecting the rate of inflation in the economy or the general price level. If we suppose that there has been a fall in the global price of oil there will be a fall in the quantity supplied of oil because the producers will now be left with a lower profit margin and some of them may also go out of business if they would find it difficult to cover their average variable costs. There will be an increase in the quantity demanded of oil and buyers who were not able to afford oil at previous prices and opted for substitutes may now turn towards oil, current buyers may also buy more. If we take the example of British Petroleum, BP will reduce its quantity of oil supplied to the market because they will now experience a lower return on oil, its current customers may want to buy more since the product is now available at lower prices and some customers may now be interested in purchasing oil rather than purchasing its substitutes such as coal, gas etc. The fall in oil prices may cause some producers who were already finding it difficult to cover their costs to go out of business or shift to the production of other commodities, this means that BP will now have a lower number of competitors in the market and will face a lower competition than in the past. Si nce the affect on the quantity supplied is due to price there will not be a shift in the supply curve of BP, it will operate on its previous supply curve but at a lower point because of the contraction in supply. Similar is the case for quantity demanded, BP will not experience a change in its demand curve because of a change in price, it will operate on the same demand curve but at a higher point due to the extension in demand.