Five companies from same industry and their vision

& mission statement Analysis

Vision Statement:
A vision statement describes what a company desires to achieve in the long-run, generally in a
time frame of five to ten years, or sometimes even longer. It depicts a vision of what the company
will look like in the future and sets a defined direction for the planning and execution of corporate-
level strategies.
A vision statement of a company is to provide their target in the future. The vision statement helps
to develop a comprehensive mission statement. The statement actually summaries the goal of the
company. A vision statement is not just a statement to explain the company’s goal it also an
element of motivation to customer and employees. A successful vision statement is focused on
customer. A vision statement should reveal the type of business the firm engages.

Mission Statement:
A mission statement is used by a company to explain, in simple and concise terms, its purpose(s)
for being. The statement is generally short, either a single sentence or a short paragraph. These
statements serve a dual purpose by helping employees remain focused on the tasks at hand, as well
as encouraging them to find innovative ways of moving toward an increasingly productive
achievement of company goals.

A mission statement is used by a company to explain, in simple and concise terms, its
purpose(s) for being.
The mission statement is usually one sentence or a short paragraph, explaining its culture,
values, and ethics.
Mission statements serve several purposes including motivating employees and reassuring
investors of the company's future.

Benefits of Mission Statement:

Mission statements are provided the following important benefits:

They communicate a sense of the firm’s direction and purpose:

By reading a firm’s mission statement, employees, stockholder, and customers should understand
the direction of the firm, both short term and long term.
 They serve as a control mechanism to keep the firm on track:

Mission statements help keep a firm from a wandering into unrelated businesses and pursuing
unrelated objectives. They serve as boundary lines for making decisions.

They help in making a wide range of day-to-day decisions:

When new or nonroutine decisions need to be made, mission statements can be used as decisions
criteria, steering employees in the right direction.

They inspire and motivate employees:

Mission statements help workers realize the broader purpose of their efforts and encourage them
to place that purpose ahead of their own self-interests.

Components of Mission Statement:

Mission statement gives basic concepts about the organization. According to the Vern McGinnis
a mission statement should have the following characteristics –

Define what the organization is and what the organization aspires to be;
Limited enough to exclude some ventures and broad enough to allow for creative growth;
Distinguish a given organization from all others;
Serve as a framework for evaluation, both current and prospective activities; and
Be stated in terms sufficiently to be widely understood throughout the organization.

On the other hand, Fred R. David feels that an effective mission statement exhibits nine
characteristics or components:

Customer: Who are the firm’s customers?

Products or Services: What are the firm’s major products or services?
Markets: Geographically, where does the firm compete?
Technology: Is the firm technologically current?
Concern for survival, growth, and profitability: Is the firm committed to growth and
financial soundness?
Philosophy: What are the basic beliefs, aspirations, and ethical priorities of the firm?
Self-concept: What is the firm’s distinctive competence or major competitive advantage?
Concern for public image: Is the firm responsive to social, community, and environmental
concern?
Concern for employees: Are employees a valuable asset of the firm?
For better analysis the mission statement of the selected company we will use the David’s
characterizes of good mission statement. And the process of the analysis is given in the
methodology part

Analysis of the Vision & Mission Statement:

For my assignment here I choose Banking Sector. Here I choose these five banks for my analysis:-
1. BRAC Bank Limited
2. Islami Bank Bangladesh Limited
3. Premier Bank Limited
4. Shahjalal Islmai Bank Limited
5. Southeast Bank Limited

The analysis of the mission statements of the selected banks are given as follows –

1. BRAC Bank Limited:

BRAC Bank will be a unique organization in Bangladesh. It will be a knowledge based

organization where the BRAC Bank professionals will learn continuously from their customers
and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate
and break barriers to serve customers and create customer loyalty through a value chain of
responsive and professional service delivery.

Vision Statement:

Building a profitable and socially responsible financial institution focused on market and business
with growth potential, thereby assisting BRAC and its stakeholders to build a just, enlightened,
healthy democratic and poverty free Bangladesh.

Mission statement:

• Sustained growth in Small and Medium sector.

• Continuous low cost deposit growth with control growth in retail assets.
• Corporate assets to be funded through self-liability mobilization. Growth in assets through
syndication and investment in faster growing sector.
• Continuous endeavor to increase non-funded income.
• Keep our debt charge at 2% to maintain a steady profitable growth.
• Achieve efficient synergies between the bank’s branches, SME unit offices and BRAC
field offices for delivery of remittance and other products and services.
 • Manage various lines of business in a full control environment with no compromise on
service quality.
• Keep a diverse, far flung full motivated and driven towards materializing the bank’s vision
into reality.

Score of BRAC Bank limited:

This bank score 6 points out of 9 points in the scale. It complies with nearly all the points except
technology, self-concept and social responsibility.

Components of Mission Statement Score

Customer 1
Products and Services 1
Markets 1
Technology 0
Survival, Growth and Profitability 1
Philosophy 1
Self Concepts / Competitive Advantage 0
Corporate Social Responsibility 0
Employees 1
Total score 6

2. Islami Bank Bangladesh Limited:

Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding having
largest branch network ( total 367 Branches, 123 Sub-Branches and 1729 Agent Outlets) among
the private sector Banks in Bangladesh. It was established on the 13th March 1983 as the first
Islamic Bank in the South East Asia. It is listed with Dhaka Stock Exchange Ltd. and Chittagong
Stock Exchange Ltd. Authorized Capital of the Bank is Tk. 20,000.00 million and Paid-up Capital
is Tk. 16,099.91 million having 33,686 shareholders as on 31st December 2019.

Vision Statement:

The vision is to always strive to achieve superior financial performance, be considered a leading
Islami Bank by reputation and performance.

• The goal is to establish and maintain modern banking techniques, to ensure soundness and
development of the financial system based on Islamic Principles and to become a strong
and eficlient organization with highly motivated professionals, working for the benefit of
 people, based on accountability, transparency and integrity to ensure stability of the -
financial systems.
• They will try to encourage savings in the form of direct investment.
• They will also try to encourage investment particularly in projects, which are more likely
to lead to higher employment.

Mission statement:

• To conduct interest-free banking. To establish participatory banking instead of banking on

debtor-creditor relationship.
• To invest on profit and risk sharing basis. To accept deposits on Mudaraba & Al-Wadeah
basis.
• To establish a welfare-oriented banking system.
• To extend co-operation to the poor, the helpless and the low-income group for their
economic upliftment.
• To play a vital role in human development and employment generation.
• To contribute towards balanced growth and development of the country through investment
operations particularly in the less developed areas.
• To contribute in achieving the ultimate goal of Islamic economic system.

Score of Islami Bank Bangladesh Limited:

This bank score 7 points out of 9 points in the scale. This statement does not comply with
technology and growth clause

Components of Mission Statement Score

Customer 1
Products and Services 1
Markets 1
Technology 0
Survival, Growth and Profitability 0
Philosophy 1
Self Concepts / Competitive Advantage 1
Corporate Social Responsibility 1
Employees 1
Total score 7
 3. Premier Bank Limited:

The Premier Bank Limited was incorporated in Bangladesh as banking company on June 10, 1999
under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh, issued banking
license on June 17, 1999 under Banking Companies Act.1991. The Head Office of The Premier
Bank Limited is located at Banani, one of the main commercial and business areas of Dhaka city.

Vision Statement:

The Bank has clear vision towards its ultimate destiny – To be the best amongst the top financial
institutions.

Mission statement:

• To be the most caring and customer friendly provider of financial services, creating
opportunities for more people in more places.
• To ensure stability and sound growth whilst enhancing the value of shareholders
investments.
• To aggressively adopt technology at all levels of operations to improve efficiency and
reduce cost per transaction.
• To ensure a high level of transparency and ethical standards in all business transacted by
the Bank.
• To provide congenial atmosphere which will attract competent work force who will be
proud and eager to work for the Bank.
• To be socially responsible and strive to uplift the quality of life by making effective
contribution to national development.

Score of Premier Bank Limited:

This bank score 7 points out of 9 points in the scale

Components of Mission Statement Score

Customer 1
Products and Services 1
Markets 0
Technology 1
Survival, Growth and Profitability 1
Philosophy 1
Self Concepts / Competitive Advantage 0
Corporate Social Responsibility 1
Employees 1
Total score 7
 4. Shahjalal Islmai Bank Limited:

Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991.
During these years SJIBL has diversified its service coverage by opening new branches at different
strategically important locations across the country offering various service products both
investment & deposit.

Vision Statement:

To be the unique modern Islami Bank in Bangladesh and to make significant contribution to the
national economy and enhance customers' trust & wealth, quality investment, employees' value
and rapid growth in shareholders' equity.

Mission statement:

• To provide quality services to customers.

• To set high standards of integrity.
• To make quality investment.
• To ensure sustainable growth in business.
• To ensure maximization of Shareholders' wealth.
• To extend our customers innovative services acquiring state-of-the-art technology blended
with Islamic principles.
• To ensure human resource development to meet the challenges of future.

Score of Shahjalal Islmai Bank Limited:

This bank score 6 points out of 9 points in the scale.

Components of Mission Statement Score

Customer 0
Products and Services 1
Markets 0
Technology 1
Survival, Growth and Profitability 1
Philosophy 1
Self Concepts / Competitive Advantage 0
Corporate Social Responsibility 1
Employees 1
Total score 6
 5. Southeast Bank Limited:

Southeast Bank Limited was established in 1995 with a dream and a vision to become a pioneer
banking institution of the country and contribute significantly to the growth of the national
economy. The Bank was established by leading business personalities and eminent industrialists
of the country with stakes in various segments of the national economy. The incumbent Chairman
of the Bank is Mr. Alamgir Kabir, FCA, a professional Chartered Accountant.

Vision Statement:

To be a premier banking institution in Bangladesh and contribute significantly to the national

economy.

Mission statement:

• High quality financial services with state of the art technology.

• Fast customer service Sustainable growth strategy.
• Follow ethical standards in business.
• Steady return on shareholders’ equity.
• Innovative banking at a competitive price.
• Attract and retain quality human resource.
• Commitment to Corporate Social Responsibility.

Score of Southeast Bank Limited:

This bank score 7 points out of 9 points in the scale.

Components of Mission Statement Score

Customer 1
Products and Services 1
Markets 0
Technology 1
Survival, Growth and Profitability 1
Philosophy 1
Self Concepts / Competitive Advantage 0
Corporate Social Responsibility 1
Employees 1
Total score 7
The comparison of five companies vision and mission statements

Companies Meaningful Relatable to their Need to change or not

performance
BRAC Bank limited Both the statement are Relatable. Their business operation is
meaningful. fully ok as per their
statements.
Islami Bank Both the statement are Relatable. Their business operation is
Bangladesh Limited meaningful. fully ok as
per their statements.
Premier Bank Limited Their vision statement Relatable. Their vision statement
is not clear. should be changed.
Shahjalal Islmai Bank Both statement is Not relatable. Both statements need to
Limited not helpful and not change.
understandable.
Southeast Bank Both the statement are Not fully Their vision statement
Limited meaningful. Relatable. should be changed.

The benefits of vision and mission statements to effective strategic management is well
documented in the literature, although research results are mixed.