Business Report Assignment for Hammerson Plc.

Business Report for Hammerson Plc.
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Introduction
An organization is supposed to have proper strategies in the aim of achieving set long term goals of long term goals in the market. Market analysis is essential for the organization to develop strategies that will guide the company to acquire a competitive edge. The strategies implemented aims at providing commodities that are widely accepted by the targeted consumers. The management is required to have adequate knowledge of the competitors and consumers in the market so as to improve the performance of the company (Hood & Birkinshaw, 2016). The production of products and services should be cost effective to make it possible to implement a competitive price in the market. According to Spieth, Schneckenberg and Ricart (2014) implementation of innovation and technology in production creates a strong brand for the company which in return improves the competitive edge in the market. This business research focuses on Hammerson Plc. which is one of the leading companies in the British property development industry. It is essential to perform market and financial analysis to develop effective suggestions that will provide a sustainable competitive edge.
Background
Hammerson Plc. was founded in 1942 by Lewis Hammerson which mainly dealt with residential properties in UK. The company expanded its operations and entered the commercial property development in 1948 to ensure that they acquire an increased market share in the property development industry (Nikbakht, Shahrokhi & Spieler, 2016). It is essential for a company to use innovation and technology in developing properties that will be widely accepted in the market. Hammerson Plc. Become a public company in 1954 in the aim of acquiring increased capital that will improve the number of properties developed by the company. The company aimed at ensuring that they turn houses into apartments that are widely accepted by the targeted market. Hammerson Plc. Has acquired a competitive edge in the real estate industry constructing 23 major shopping centers, 18 retail parts, 19 premium outlets and having a portfolio value of £ 10 billion. Hammerson Plc. implements effective strategies that ensure a continuous development of operation by the company.
Market analysis
Market analysis requires the management to analyze the external business environment so as to develop an effective strategy. PESTLE analysis makes it possible for the company to access the risks in the external business environment. The external environment is highly dynamic thus keeps on changing causing an impact to the performance of the company. The factors analyzed are political, economic, social, technological, legal and ecological factors (Khan, Alam & Alam, 2015). This increases the business operations of the company due to implementation of strategies considering the external environment affecting the organization. PESTLE analysis is essential for Hammerson Plc. in acquiring a sustainable competitive advantage in the property development market.
Political
These are the impacts of the governing bodies on the performance of Hammerson Plc. which require being evaluated so as to acquire set objectives. The regulation implemented in Europe where Hammerson Plc. operates provides opportunities and challenges to Hammerson Plc. when developing properties in the region. According Miller (2016) Britain exit from EU affected the performance of Hammerson Plc. where the labor rules and trade agreements were changed making it hard for the company to acquire an increased share in all parts of Europe. British exist from the European Union made it hard for Hammerson Plc. to operate in a free market in the region. According to Meyer and Peng (2016) on the other hand the UK has a stable political environment which improves investment in the region.
Economic
Economic performance of a country greatly affects the performance of an organization where an organization seeks to invest in an economically stable nation. Hammerson Plc. focuses in engaging in an improving economy where the consumers are available due to the increased income. According to Financial Times (2016) the UK has been registering an increase of GDP from 2009 after the global financial crisis which had negatively affected the economy. The economy of a nation considers the individuals and businesses involved in increasing the performance of the nation. The UK registered a 1.8% increase in the economy in 2016 compared to 2015 due to involvement of proper development projects (Gov.UK, 2017).Hammerson Plc. operates in Europe putting into practice the set tax and duties which are supposed to be paid in property development industry.
Social
This is where Hammerson Plc. considers the community to make it possible to acquire a large market share in the targeted market. The properties developed by Hammerson Plc. are required to consider traditional and cultural beliefs of the targeted market so as to have an increased competitive edge in Europe. According to Hajli (2014) the company develops strategies considering social goals of the community to make it possible for an increased social and political progress from business operation of the company. Hammerson Plc. serves and invests to add value of the communities in the region for a sustainable society.
Technological
Hammerson Plc. mission is creating sustainable structures that will positively affect the social, economic and environmental performance. The company uses advanced technology making it possible to develop apartments that will be widely accepted by people across Europe. According to Hammerson (2017) this has made the company to acquire passing rent of £ 392.5 million from engagement in retail parks, shopping centers and designer outlets. Technology analysis makes it possible to forecast the advancement expected in the future so as to develop products that will meet the future needs of the consumers (Crane & Matten, 2016). The advancement of technology across Europe requires the Hammerson Plc. to develop strategies that are technology and innovation oriented for quality development of properties. Hammerson Plc. is able to identify effective marketing and supply channels that will reach potential consumers.
Legal
It is essential for a company to follow set legislature regulation where it operates for a smooth flow of operations. Hammerson Plc. is a company which operates across Europe developing quality properties to the consumers. The exit of Britain from the European Union negatively impacted the company as there was an increased rules and regulation governing trade in the region (Moschieri, Ragozzino & Campa, 2014). An increase of trade rules and regulation negatively impact the performance of an organization as there are many procedures followed before investing in the nation. The legal factors affect importation, exportation, regulatory obligations, safety rules and health rules to be followed by an organization in production.
Ecological factors
Environmental factors are supposed to be considered by organizations to make them widely accepted in the targeted region. Okpara and Idowu (2013) states that corporate social responsibilities focus on improving the performance of a company by engaging in activities that benefits the society. Hammerson Plc. engages in corporate social responsibility to ensure that there is environmental sustainability in the market. There are managers who are focused in ensuring a sustainable performance considering the environment through proper disposal of waste products and conservation of the environment. Hammerson Plc. reputation is increased through the activities of conserving the environment when developing properties across Europe.
Financial information and analysis