The Lookers Plc

The Lookers Plc

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Ref No: 3153

Introduction:

The Lookers Plc is the renowned company of the United Kingdom and is currently working in many countries. The following report is aimed to direct the Director of the Acquisition Department of Pendragon, UK’S leading automotive online retailer on the suitability of acquiring Lookers.

The principal market activities of the Pendragon’s are done by retailing of the used and new vehicles including the service and repair for the vehicles (aftersales). The following report gives the annual report of the Lookers and it shows the strengths and constantly elevating profit of the company.

The gross profit of the Lookers for the year 2014 was 396.1 £m and in the year 2015 it was raised to 452.2£m which depicts the increased position of the Lookers Plc. The net profit for the year 2014 was 46.8£m and in 2015 it was raised to 50.8£m. The shareholders of the Lookers in year 2014 were 46.8 and raised to 50.8 in year 2015.

Net assets for the year 2014 of the Lookers were 256.9£m and in 2015 they manages to raise it to almost 297.8£m. all the above details make the Lookers Plc an eye catcher for the other high reputed retailer of the UK like Pendragon. The company’s current strategies mark this company as constantly growing company in the market.

The company has some basic strategies which it follows to get the current situation which is admired by all the retailors across the United Kingdom. The profit and the productivity of the company is admirable. The business and the customer strategies of the Lookers is inspiring and eye catching for the other retailers.

Context (external):

PEST Analysis:

Political:

The government has introduced franchise legislations for the autos sector in the June 2013. With an addition to the franchise rules and regulations mentioned above, changes to the transport policy of the government could negatively affect the profitability of the group if, in a result of which, the customers will choose to use the alternative mediums of transport.

Moreover if Brexit is likely to happens it will cost billions to the GDP and can result in the form of loss of jobs that can adversely affect the economical stature.

Economical:

The financial status according to the finance director is that they can continue the trade for approximately a period of a year. This forecast was made by agreeing with the board budgets and forecast by taking in considerence their recent trade results. However there is a risk of down side scenarios.

A major portion of the income of the company is coming from the receipt of the rebates from manufacturer’s side. The stock evaluation of business is very important for the value of the new in comparison to the newly manufactured cars keeping in view the absolute levels of stock and the effect of ageing. According to their management calculation their stock provisions are enough.

Social:

In the markets the number of competitors is few however the competitors are very well established and have an equal status to that of Lookers. They have approached the clients through internet sources and they are also offering private dealing for the individual customers.

Due to franchising of the business, small garages and body shops have grown. Due to this the market offers different vehicles of varying prices which is an attractive factor for the costumers. The differentiating point for all these competitors is the quality of customer service all they are offering which is even more important than the prices.

Technology:

One major strength associated with the company is that it keeps on improving its efficiency of operations and focuses on waste reducing techniques. They are reporting to CRO (carbon reduction commitment) as well as GHG (greenhouse gas reporting).

They are also affiliated with the ESOS (energy saving opportunity scheme) in accordance to which they are modifying their cars in such a way that they are more and more environmentally friendly and produce the least amount of waste…………….continued