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1. Assignment
Topic:
Mission Statement Analysis
Introduction to Power Industry
For the assignment I have selected the Energy and Power Distribution industry in Pakistan. Reason
to select this industry is that the served area and number of customers are greater than any other
industry. In Pakistan Energy and Power sector is divided into two subsectors Power Generation
Companies and Power Distribution Companies. Power Generation Companies are further
categorized in Hydal Generation, Thermal Generation, Solar Generation, Atomic Generation and
Wind Generation Companies. This Generation Companies Generate Power (Electricity) by their
defined domain and all generated power is transferred to NTDC (National Transmission and
Dispatch Company) Circuit. NTDC Distribute this power to all over the Pakistan, however NTDC do
not electrify the customers directly. It is only distribution channel to Regional Power Distribution
Companies.
Power distribution Companies
NTDC distribute and electrify the power through 220KV or 500KV lines to all its Grid Stations.
Customers market of all Pakistan is divided into 10 power Distribution Companies named as
GEPCO, LESCO, FESCO, IESCO, QESCO, MEPCO, HESCO, PESCO, SEPCO and K-Electric. These Power
Distribution Companies receive the Power from NTDC through their own Distribution System in
2. 132KV and 66KV Grid Stations. Power from these Grid stations is distributed through 11KV Lines
(called 11KV Feeder) to different areas and then this power is converted to 220V through
Transformer. These 220V lines provide connections to general public as well as industrial users of
all categories.
Population of Study
Power Distribution Companies who distribute electricity to General and Industrial Users is
population of study. This population consists of 10 Companies who covered and electrified all areas
of Pakistan these Companies. Out of these 10 companies 9 companies are selected as sample are:
GEPCO Gujranwala Electric Power Company
LESCO Lahore Electric Supply Company
FESCO Faisalabad Electric Supply Company
MEPCO Multan Electric Supply Company
HESCO Hyderabad Electric Supply Company
QESCO Quetta Electric Supply Company
PESCO Peshawar Electric Supply Company
IESCO Islamabad Electric Supply Company
SEPCO Sukker Electric Supply Company
K-Electric Karachi Electric Company
Sample of Study
Out of these 10 companies 9 companies (GEPCO, LESCO, FESCO, IESCO, QESCO, MEPCO, HESCO,
PESCO, SEPCO and K-Electric) are selected as sample.
Data Collection and Methodology
Data is collected from annual reports of power distribution companies from their websites. One
company SEPCO (Sukker Electric Supply Company) has not mention his mission statement in
annual reports. David R. Fred’s model of evaluating Components of Mission Statement Analysis is
applied on collected data.
Analysis of Data
David R. Fred’s model is applied on overall industry and on individual companies. Table 1 and
graph 1 show analysis on industry wise, table 2 and graph 2 represents the analysis of individual
company.
3. Discussion of Results
Discussion is consist of two parts, First results of overall industry and secondly results of individual
Companies.
Industry Results
In this part components of mission statement analysis are made on overall Industry. These results
are explained on the basis of each component.
1. Customers: According to the survey, 8 companies out of 9 companies (88.88%) mentioned
about their customers in the mission statement. From the total number of companies Energy
Distribution Sector These results also showed that out of these 10 companies only one company
(PESCO Peshawar Electric Supply Company) not specified their customers: . As example, the
mission statement of GEPCO Provide Safe, Secure, Accessible and Reliable Electric
Power supply to our esteemed Customers.
2. Products or Services: Out of 9 Energy Distributor Companies all companies (100%)
mentioned about their products and services in the mission statement. As the leading
electricity distribution company, strive to provide un-interrupted electric supply
and quality service to all customers at the minimum possible cost.
3. Market: According to the analysis, 4 companies (44.44%) mentioned about their
market in their mission statement. These companies are FESCO, QESCO, K-Electric and
HESCO. For example, the mission statement of K-Electric, “Brightening lives by
building the capacity to deliver uninterrupted, safe and affordable power to
Karachiites.”
4. Technology: A total of 5 companies (55.55%) mentioned about technology in the mission
statement. Mention about technology was found in GEPCO, LESCO, QESCO, K-Electric and HESCO. As
example, the mission statement of GEPCO Provide Safe, Secure, Accessible and Reliable
Electric Power supply to our esteemed Customers in accordance with their
varying needs in a cost effective and efficient manner with special emphasis on
excellence and innovation.
5. Concern for survival, growth and profitability: A total of 9 Companies (100%)
mentioned about their concern for survival, growth and profitability in their mission statement. As
example, the mission statement of The GEPCO Provide Safe, Secure, Accessible and
Reliable Electric Power supply to our esteemed Customers in accordance with
4. their varying needs in a cost effective and efficient manner with special
emphasis on excellence and innovation.
6. Philosophy: According to the survey, all companies (100%) mentioned about their
Philosophy in their mission statement. Banks & Financial institutions (11 companies, 61.11%),
Insurance (1 company, 16.67%), Pharmaceuticals & chemical (5 companies, 50%), Textile (9
companies, 100%), Engineering (2 companies, 50%), Food & Allied (3 companies, 100%), and
Miscellaneous (4 companies, 100%), sectors mentioned anything about their Philosophy in the
mission statement. As example, the mission statement of LESCO “As the leading electricity
distribution company, strive to provide un-interrupted electric supply and
quality service to all customers at the minimum possible cost..”
7. Concern for public image: A total of 3 companies (33.33%) mentioned about their
concern for public image in their mission statement. These companies are GEPCO, IESCO and
QESCO. For example, QESCO.’s mission is to Quetta Electric Supply Company strives to
provide un interrupted electric supply and quality service to all customers at
the minimum possible.
8. Self-concept: Out of 9 companies, 8 companies (88.889%) mentioned about their self-
concept in their mission statement. Only one MEPCO not mentioned anything about this in
the mission statement. As for example, the mission statement of PESCO Our mission is to
bring the assurance of energy to our customers, with world class quality and
commitment for satisfaction as we continue in our quest for excellence.
9. Concern for employees: About 44.44% companies (4 in number) mentioned about their
concern for employees in their mission statement. These Companies are LESCO, IESCO, QESCO and
HESCO. For example, in HESCO mission statement “To provide safe and secure working
environment for its employees”.
Some other findings
All the companies properly explained 100% about their Product/Services, Concern for future
Survival and Philosophy. 2nd
rank 90% is given to Customer and Self Concept. In 3rd
Category 60%
score is allotted to Technology, while Market and Employees are in rank of 4 with 44.44% scoring
and in last and 5th
ranking 33.33% is allotted to Concern for Public Image.
Individual Company Results
In this part components of mission statement analysis are made on individual company and results
are explained on the basis of each component.
1. QESCO
5. QESCO’s mission statement has been showing excellent score as it properly addresses all the
components of mission statement. We can call it a best and comprehensive mission statement.
2. HESCO
HESCO’s mission statement is also good and comprehensive because it addresses maximum
components of mission statement. It communicates about 88.89%. it only skip concern for public
image.
3. GEPCO
GEPCO’s mission statement has been showing that it communicates about 77.78% components. We
can say it good statement because It ignore only two components. It do not mention about its
market and Employees.
4. LESCO
LESCO’s mission statement is similar in percentage as to GEPCO. But It include its customer in
mission statement but do not mention about Image for Public Concern.
5. K-Electric
K-Electric’s mission statement is also similar in percentage as to GEPCO and LESCO. It includes its
Market but not mention about its employees and Image for Public Concern.
6. IESCO
IESCO’s mission statement is also resembled to GEPCO and LESCO but it skips Market and
Technology in its mission statement.
7. FESCO
FESCO’s mission statement is communicating 66.67% percent components. It is a 2nd
large power
distribution company in Pakistan, But it skip three elements in its mission statement. Missing
elements are Technology, Concern for Public Image and Employees.
8. MEPCO
MEPCO is the largest power distribution company on the base of operational areas but its mission
statement just communicating 44.45% percent components. It describes on about Customer,
Product/Services, Future Survival and Philosophy. It nothing mention about remaining five
components.
9. PESCO
6. Mission statement of PESCO is similar in percentage as to MEPCO. It explain in its mission
statement about Product/Services, Future Survival, Philosophy and Self concept
Other Findings
In individual company analysis it is observed that QESCO which is smallest company
in Pakistan, but it prepare its mission statement by considering all the components
of mission statement analysis defined by Davir. R.Fred.
Concluding Remarks and Scope of Future Research
Mission statement is the key component to communicate with all stakeholders. It should be
addressed all of them. Because it is important as organizations adopt change and embark on new
opportunities of doing business. Perhaps Drucker (1992:205) said it best:
“It [the mission] focuses the organization on action. It defines the specific strategies needed to
attain the crucial goals. It creates a disciplined organization. It alone can prevent the most
common degenerative disease of organizations, especially large ones; splintering their always
limited resources on things that are ‘interesting’ or look ‘profitable’ rather than concentrating
them on a very small number of productive efforts.”
A mission statement is a tool to make the annual report attractive to the users without giving a
guideline for strategic management (Hossain, 2004). In future study can be done in this area by
associating the quality of mission statement with the performance of the company. The result can
be verified with the bold statement made by Drucker (1974: 78), “That business mission is so
rarely given adequate thought is perhaps the most important single cause of business
frustration.” Besides, study can also be undertaken in case of non-profit organizations as well to
find out its relationship with the performance of the entity.
Appendixes
Table 1
S.No Company
Custo
mers
Product/
Services
Mark
ets
Technol
ogy
Conce
rn for
Survi
val
Philoso
phy
Self-
Conce
pt
Conce
rn for
Publi
c
Image
Employ
ees
1 GEPCO Yes Yes Not Yes Yes Yes Yes Yes No
2 LESCO Yes Yes No Yes Yes YEs Yes No Yes
3 FESCO Yes Yes Yes No Yes Yes Yes No No
4 IESCO Yes Yes No No Yes Yes Yes Yes Yes
5 QESCO Yes Yes Yes Yes Yes Yes Yes Yes Yes
6 MEPCO Yes Yes No No Yes Yes No No No
7 HESCO Yes Yes Yes Yes Yes Yes Yes No Yes
7. 8 PESCO No Yes No No Yes Yes Yes No No
9
K-
Electric Yes Yes Yes Yes Yes Yes Yes No No
Total 8 9 4 5 9 9 8 3 4
Percentage
0.9 1 0.4 0.6 1 1 0.9 0.3 0.4
Graph 1
Table 2
Company Total Components Percentage
GEPCO 7 0.7778
LESCO 7 0.7778
FESCO 6 0.6667
IESCO 7 0.7778
QESCO 9 1.0000
MEPCO 4 0.4444
HESCO 8 0.8889
PESCO 4 0.4444
K-Electric 7 0.7778