Professional Documents
Culture Documents
Mission Statement Analysis
Mission Statement Analysis
com
JUNE 2012
VOL 4, NO 2
Methodology
Publication of Sate Bank of Pakistan (SBP) (December, 2011) informs that 44 scheduled banks were operating
in Pakistan till the closing of December 2011, out of them 22 were domestic private Pakistani banks, that means
(50%) of the population.
A number of 21 domestic private Pakistani banks were used as a convenient sample to make analysis in this
study. Data needed to make comparative analysis of mission statement were collected from annual reports of
(2010 and 2011) and websites of these private banks.
Limitation
This study was limited to the local private banks operating in Pakistan. Thus, it may lack high Generalisability.
Researchers may expand the spectrum of study by investigating other types of banks operating in Pakistan.
Findings
Overall, the score card of mission statement of (scheduled) banking setups in Pakistan were found above the
average score card of mission statement. Banks were more focused on customers and concern for survival,
growth and profitability rather market, technology, employees and self concept .
Keywords: Mission statement, Scheduled Banks, Pakistan.
1. INTRODUCTION
Business can be defined as a social unit. Today, business is more publicly observable and society also curious to
get newss of the movement of business. But, new social structure presents business with complex problem
which were not in past (Hossain, 2004).
A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business
mission. Only a clear definition of mission and purpose of the organization makes possible clear and
realistic business objectives Peter Drucker (1973, & 1974, as cited in Ahmed, 2010; Biswas, Chowdhury, &
Das, 2007; Hossain, 2004; Meraj, Hossain, I., Shahezaman, Akter, & Hossain, S., 2011).
Mission articulates the business of the organization, for example, a production of products is manufacturers
mission. Similarly to deliver education at local level is an institutions mission (Hossain, 2004).
Desmidt and Prinzie (2009) narrate that most of the organizations in both public and non earning setups are in
believe that articulating a formal mission statement will give them edge in their position. Meraj et al. (2011)
believe that Mission of the firm should be articulated to the stake holders and it can be best done via mission
statement. Hossain (2004) defines mission statement as unique, clear and well written statement that articulate
the mission to different parties (stake holders and shareholders) connected to an organization.
COPY RIGHT 2012 Institute of Interdisciplinary Business Research
102
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
Mission statement is the rationale for its existence (Desmidt & Prinzie, 2009; Meraj et al., 2011).Thus it gives
idea of what does the firm want and whom it likely to facilitate (Meraj et al., 2011). Mission statement is an
instrument that articulates business; target the market of the firm, and acts as force or mixture that joins different
standards (Biswas et al., 2007).
A corporate mission is more than good intent and fine thoughts. It sets the standard for the whole business so
that organization can be flourished, Prosperous and achieve its outcomes (Hossain, 2004). Corporate mission
statements .... are the operational, ethical, and Financial guiding lights of companies. They are not simply
mottoes or slogans; they articulate the goals, dreams, behavior, culture, and strategies of companies (Jones and
Kahaner, 1996: ix as cited in Ahmed, 2010; Biswas et al., 2007; Meraj et al., 2011).
Ahmed (2010) writes mission statements can be observed all over the place in recent years. Biswas et al. (2007)
feel various organizations hold mission statement that can not be shared at large possible reason may be setting
the standard that are unrealistic and not a part of organizational traditions. Just articulating a mission does not
directly lead to significant financial betterment.
Mission statements are stated to articulate essential features as well as to get it. Thus, narrates the actual soul of
an organization and serves as knowledge composition. For them, many scholars of public management feel that
a significant and un-ambiguous mission is favorable for value (Desmidt & Prinzie, 2009).
In order for an organization to do and go well mission statement is vital (Ahmed, 2010; Biswas et al., 2007). It
can be expressed in different medium like internal reports, annual reports etc. (Hossain, 2004). But it can be
varied in terms of wording, arrangement and lengthwise measurement, from organization to organization.
Mission statement can lead to profits and raise shareholders value (Biswas et al., 2007; Hossain, 2004; Meraj et
al., 2011). Generally the main source of business disturbance and breakdown is lack of proper thoughts on
mission and purpose of business (Hossain, 2004).
Biswas et al. (2007) claim that mission statement helps and guides in finalizing lower level objectives. Mission
statement is amongst the most essential building block of organization. Large Corporations, small businesses
and non profit organizations can also get benefit by expressing mission statement. Small businesses can grasp
their vision through mission statement.
Desmidt and Prinzie (2009) narrates mission statement should disclose the strategic blue print of the setup and
serves as base for several management applications. And directs the bosses and ensures effectiveness of
resource management practices.
It has become a vital means, for communication visibly, to display organizations dedication and sincerity. Thus,
mission statement resultantly provides subsequent benefits such as:
Translates the path and rationale of firm: The stakeholders and shareholders get informed by the path of
organization, for smaller and longer tenure.
103
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
Sets the boundary line: Serves as boundary line while taking any decision like to pursue un-realistic
objectives.
Helps in decision making: It can be served as standard for decision making like in unforeseen situation to keep
the organization on right path.
Encourages and induce workers: It helps the workers to make sure that organizations commitment is upfront
in each case (Ahmed, 2010; Biswas et al., 2007).
ii.
Products or Services: This part carries information regarding products and services.
iii.
Markets: Area, locations, and boundaries where the firm wants to flourish.
iv.
v.
Concern for survival, growth, and profitability: Is the organization committed in terms of financial
success and future existence?
vi.
Philosophy: Describes the primary views, desires, and virtuous urgencies of the company.
vii.
Self-concept: What are the organizations unique proficiencies or key competitive edges?
viii.
ix.
Desmidt and Prinzie (2009) believe essence of mission statement may be not worthy because of its visualization
in different styles. Thus individual ambiguity needs to be minimized by negotiating and collective approach to
enhance and its understanding, right meanings at wider level.
1.2 MISSION STATEMENTS OF LOCAL/DOMESTIC PRIVATE BANKS OF PAKISTAN
Allied Bank Limited
In Annual Report (2011) of Allied Bank Limited, Mission Statement suggests to:
Form ongoing significance through development, proficiency and multiplicity for the stakeholders.
Deliver a stimulating Work setting and return, devoted group partners on the basis of their skills,
efficiency and productivity.
This Bank gets an Individual Score of 5 points (see table 01) out of scale of nine points.
104
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
Legitimacy
Origination
Appreciative our customers needs
Assuring the Excellency, quicker and reliable solutions. We consider intellectuals as an asset.
This Bank gets an Individual Score of 7 points (see table 06) out of scale of nine points.
105
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
106
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
This Bank gets an Individual Score of 5 points (see table 16) out of scale of nine points.
107
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
This Bank gets an Individual Score of 5 points (see table 21) out of scale of nine points.
United Bank Limited
In Annual Report (2011) of United Bank Limited, Mission Statement suggests to:
This Bank gets an Individual Score of 6 (see table 20) out of scale of nine points.
108
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1.3 COMPONENT WISE MISSION STATEMENT OF LOCAL / DOMESTIC BANKS OF PAKISTAN
S. No.
Customers
Products
or Services
Markets
Technology
Philosophy
Selfconcept
Al Baraka Bank
(Pakistan) Limited
Bank Al-FalahLimited
BankIslami Pakistan
Limited
10
11
JS Bank Limited
12
13
14
15
16
17
Silkbank Limited
18
19
20
21
Concern for
Employees
Concern for
Public image
Shows Banks have particular characteristic in their mission statement. [Blank columns/rows] Shows Banks do not have or missing particular characteristic in their mission statement.
COPY RIGHT 2012 Institute of Interdisciplinary Business Research
109
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
2. FINDINGS OF INVESTIGATION
S c ore is out of 9
6
5
S ilkbank L imited
MC B B ank L imited
K A S B B ank L imited
J S B ank L imited
5
0
S c ore
After a critical analysis of mission statement of 21 banks using Fred R. David model as benchmark, it was found
that out of nine points scale, maximum points gained by any bank were 7, that were achieved by two banks i.e.
[Askari Bank Limited, and Bank Islami Pakistan Limited], minimum points achieved by any bank were 2 i.e. [
KASB Bank Limited].
Two banks gained 6 points (66.66%=6/9*100) out of nine i.e. [Bank Al-falah limited, and United Bank
Limited]. Nine banks gained 5 points (55.55%=5/9*100) out of nine i.e. [Allied Bank Limited, Albaraka Bank
Limited, Muslim Commercial Bank Limited, Meezan Bank Limited, NIB bank Limited, Samba Bank Limited,
Silk Bank Limited, Soneri Bank Limited, Summit Bank Limited]. Three banks gained 4 points (44.44=4/9*100)
out of nine i.e. [Bank Al habib limited, Dubai Islamic Bank Limited, Standard Chartered Bank of Pakistan
Limited]. Four banks gained 3 points (33.33=3/9*100) out of nine points i.e. [Burj Bank Limited, Faysal Bank
Limited, Habib Bank Limited, JS Bank Limited].
If we take average of 9 points scale it would become 4.5. Hence out of total 21 banks, 13 Banks gained the
scores upper than average and 8 banks gained score below than average. Our study also discloses that greater
numbers of (scheduled) banks in pakistan are interested to incorporate their concern for customers, and for
survival, growth and profitability in the mission statement.
110
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
3. CONCLUSION
Rating
1=
3
6=
6=
1=
5
6=
4
6=
It may be summarized that broadly (Scheduled) banking systems mission statement score in Pakistan is well
above the average score card of mission statement. And Majority of the banking setups are keen to incorporate
their concerns for customers, for survival, growth and profitability, as well as concerns for product or services in
mission statement but less focus are given to Market, Technology , Employees and on self concept.
111
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
REFERENCES
Ahmed, A. (2010). Analysis of the Mission Statement of the Commercial Banks
Bangladesh. Retrieved May 2, 2012, [online] available SSRN: http://ssrn.com/abstract=1633225
http://dx.doi.org/10.2139/ssrn.1633225
Annual Report 2011, Allied Bank Limited, Retrieved May 2, 2012, [online]
http://www.abl.com/thebank/pdf/annual_report_2011/ABL%20Annual%20Report%202011.pdf
of
or
available
Annual Report 2011, Askari Bank Limited, Retrieved May 2, 2012, [online] available
http://www.askaribank.com.pk/Reports/Askari%20AR%202011%20ALL.pdf
2,
2012,
[online]
available
Annual Report 2011, Bank Islami Pakistan Limited, Retrieved May 2, 2012, [online] available
http://www.bankislami.com.pk/investor_relation/pdf/Bank%20Islami%20A%20R%202011.pdf
Annual Report 2011, Burj Bank Limited, Retrieved May 2, 2012, [online] available
http://www.burjbankltd.com/media/financial/Burj_Bank_Annual_Report_2011.pdf
Annual Report 2010, Faysal Bank Limited, Retrieved May 2, 2012, [online] available
http://www.faysalbank.com/docs/Faysalbank.pdf
Annual Report 2011, JS Bank Limited, Retrieved May 2, 2012, [online] available
http://www.js.com/uploads/JSBankAnnualReport201110412.pdf
Annual Report 2011, KASB Bank Limited, Retrieved May 2, 2012, [online] available
http://www.kasb.com/sitedata/downloads/Bank/20120411060149447_BankAnn2011.pdf
Annual Report 2010, Meezan Bank Limited,
http://meezanbank.com/docs/AnnualReport2010.pdf
Retrieved
May
2,
2012,
[online]
available
[online]
available
Annual Report 2011, Soneri Bank Limited, Retrieved May 2, 2012, [online] available
http://www.soneribank.com/document/url/83/Soneri_AR_2011.pdf
May
2,
2012,
112
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
Annual Report 2011, United Bank Limited, Retrieved May 2, 2012, [online] available
https://www.ubldirect.com/corporate/resources/ubl/aboutus/financial_report/report_2011/Annual_Reports/UBL
%20Annual%20Report%202011.pdf
Annual Report 2011, MCB Bank Limited, Retrieved May 2, 2012, [online] available
http://www.mcb.com.pk/uploads/FCG/docs/MCB%20Annual%20Report%202011.pdf
Biswas, P. K., chowdhury, S. P., & Das, S. (2007). Mission Statements of Selected Bangladeshi Companies: An
Analysis from a Strategic Management Viewpoint. The Cost and Management,35 (3), 46-60. [Available]
http://ssrn.com/abstract=1020003
May
2,
2012,
[online]
available
Hossain, D. M. (2004). An Analysis of the Mission Statements of Selected Bangladeshi Companies. Journal of
Business
Administration,
6.
Retrieved
May
2,
2012,
http://www.bdresearch.org/home/attachments/article/339/An%20Analysis%20of%20the%20Mission%20Statem
ents%20of%20Selected%20Bangladeshi%20Companies.pdf
Desmidt, S., & Prinzie, A. (2009). Does your mission statement have any value? An
explorative analysis of the effectiveness of mission statements from a communication perspective. Working
Paper 2009/568, Retrieved May 2, 2012,
http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_09_568.pdf
Meraj, I. H., Hossain, I., Shahezaman, Z., Akter, L., & Hossain, S. (2011). Analysis of the Mission Statement of
the Commercial Banks of Bangladesh [online] available Available at SSRN: http://ssrn.com/abstract=1792692
or http://dx.doi.org/10.2139/ssrn.1792692
State Bank of Pakistan (SBP) publication title Statistics on Scheduled Banks in Pakistan - December - 2011,
Retrieved
May
2,
2012,
[online]
available
http://www.sbp.org.pk/publications/schedule_banks/Dec_11/ReviewTitle.pdf
113
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
Annexure
Table-01: Allied Bank Limited Score
1
0
0
1
1
0
0
1
1
5
1
1
1
0
1
0
0
0
1
5
1
0
1
1
1
1
0
1
1
7
114
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1
1
0
0
1
0
1
1
1
6
0
1
1
0
1
0
0
1
0
4
1
1
0
1
1
1
1
0
1
7
115
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1
1
0
0
1
0
0
0
0
3
0
1
0
0
1
1
0
0
1
4
0
1
1
0
0
0
1
0
0
3
116
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1
0
0
0
1
0
0
0
1
3
1
1
0
0
0
1
0
0
0
3
Customer
Product & Services
Markets
Technology
Survival, Growth and profitability
Philosophy
Self concepts
Corporate social responsibility
Employees
Total Score
1
0
0
0
1
0
0
0
0
2
117
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1
1
0
0
1
1
0
0
1
5
1
1
0
0
1
1
0
0
1
5
1
0
0
0
1
1
0
1
1
5
118
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
1
1
0
0
1
0
0
1
1
5
1
1
0
0
1
0
0
1
1
5
1
1
0
1
1
0
0
1
0
5
119
ijcrb.webs.com
JUNE 2012
VOL 4, NO 2
0
1
1
0
0
0
1
0
1
4
1
1
0
0
1
1
0
1
1
6
1
1
0
1
0
0
1
0
1
5
120