The Performance of UK Gambling - Essay Example

To evaluate the performance of the UK’s gambling industry, three leading gambling organizations; Ladbrokes PLC, Rank Group PLC, and Sportech PLC financial performance has been considered. The report presents rationales for the selection of the gambling industry and the selection of the three gambling firms to conduct the study (Chalabi, 2014). The researcher has briefly discussed the outlook of the UK gambling industry on the bases of statistical representation and interpretations of three major gambling firms in the UK.

The report will elaborate on the internal and external factors that have influenced the performance of the UK gambling industry. Therefore, PEST analysis has been conducted to illustrate Political, Economic, Social, and Technological factors to determine external environmental factors influencing the performance of the industry (Chalabi, 2014). Moreover, legislative and environmental concerns have also been discussed with respect to the recent amendments in laws and regulations of the government that has affected the profitability of the firms.

The second section of the report focuses on internal factors of the gambling industry. Thus, ratio analysis and SWOT analysis have been conducted to determine the financial and non-financial aspects of firms and industries (Scherer & Palazzo, 2014). The ratio analysis has been undertaken using five years of financial results of the company obtained from the annual reports and industrial ratios (Fridson & Alvarez, 2011). The ratio analysis has been used as a tool to compare the performance of each firm to provide insight into the financial concerns of the gambling industry.

The third section discusses the SWOT (strength, weakness, opportunities, and threats) of the selected firms and industry, as it allows an understanding of potential opportunities and threats of the UK’s gambling industry.

1.2 Importance of the research

The report would significantly contribute to evaluating and studying the performance of the gambling industry in the UK.