Company Report of Barratt Developments PLC Essay

Company Report of Barratt Developments PLC - Essay ExampleIn the comparison of the follows recent performance to that of its closest competitor, Taylor Wimpey Plc it is noted that thou it generates more revenue than this competitor it affix lower profits due to huge expenditure arising from a huge debt repayment. Under the third sectionalization of the report, the strategies of market penetration and development are presented as the levelheaded strategies for the future economical success of the company. 1.0 portal The historical background of the modern housing sphere of influence in the United Kingdom indicate that initially the sector was dominated by the government and private companies, which constructed houses for their workers but there was very little federation of private specialized construction companies. However, this changed with the increased pressure to adopt the neo-liberalization economic practices that encouraged privatization of most overt corporations and led to the emergence of specialized construction companies, which revolutionized the housing sector and resulted in the development of unique, well-designed, and constructed houses and business expound (Lowe, 2011). This report focuses on the Barratt Development PLC, which is among the largest residential property development companies in the United Kingdom. It has been in feat since 1958 and is generally acclaimed with the development of the UK residential property sector (Lowe, 2011). This study will commence by flavor into the economic environment in which the Barratt Development PLC operates. Secondly, it will critically appraise the companys financial performance in the recent years whilst comparing it to its closest competitor. Lastly, the study will incorporate an economic model and provide related information as appropriate in order to devise reasoned strategies for the future economic success Barratt Development Plc. 2.0 Economic environment in which Barratt Developme nts PLC operates Among the crucial economic factors that fanny indicate the health of the UK economic environment in which Barratt Developments PLC operates in include pertain rates and the prevail income levels (Myers, 2013). This discussion will also incorporate an analysis of the impact of government policies on the housing sector and their impact on the operations of Barratt Developments Plc. 2.1 Interest rates In the studies conducted by Myers (2013), he stated that the interest rate levels within a country largely determine the accessibility of credit and in this case the accessibility of mortgage. The rate of interest at which borrowers are going to repay back their mortgage largely determines the booms and busts on the UKs house prices. If the rate of interest charged on mortgage finance is easily high, first time homebuyers will be discouraged and this will lead to a bust in the housing prices due to the low demand. If the level of interest rate is perceived to be at an cheap rate then first time homebu