, MNE3701
ASSIGNMENT 1 SEMESTER
2026
DUE 20 AUGUST 2026
QUESTION 1:
1. Facilitating Financial Success and Returns
A primary value-creating function of a business plan is to enhance the financial performance and
stability of the new venture. Theoretically, this is achieved through the structured process of
outlining cost estimates, profitability projections, and a clear strategic approach to pursuing an
opportunity (Becherer & Helms, 2009). This forces the entrepreneur to rigorously test the financial
viability of the idea before committing resources. The article provides empirical evidence from its
own study supporting this link. The findings indicated a significant relationship (p ≤ .08) between
having a business plan at start-up and achieving higher levels of "Financial Success" (measured by
five items, alpha = .86). Furthermore, the study found a marginally significant relationship (p = .07)
between using a business plan and the "Satisfactory Achievement of Financial Return Goals"
(Becherer & Helms, 2009). This suggests that the planning process helps founders make more
informed decisions that directly contribute to a venture's profitability and ability to meet its
financial objectives.
2. Creating a Sustainable and "Excellent" Organization
Beyond immediate financial metrics, a business plan serves a crucial function in building a strong,
sustainable organization with a long-term vision. This aligns with the theoretical perspective that
the plan is not just for securing funding but also for "actual planning within the business" (Becherer
& Helms, 2009, citing Hannon & Atherton, 1998). By requiring founders to think through logistics,
pitfalls, and possibilities, the business plan helps clarify goals and establish management practices.
The study's empirical findings strongly support this value-creation function. It found a significant
relationship (p = .03) between the use of a business plan and "Strong Company Success" (Becherer
& Helms, 2009). Most notably, there was a significant link (p = .08) between using a business plan
and achieving a high score on the "EXCELL" measure, an adaptation of Peters and Waterman's
attributes of excellent companies. The authors interpret this to mean that the business plan is an
"initial step toward building a strong sustainable organization with a dedicated employee base and
an employee centered corporate culture" (Becherer & Helms, 2009). This highlights the plan's
function in fostering a corporate culture and operational framework conducive to long-term
prosperity.
ASSIGNMENT 1 SEMESTER
2026
DUE 20 AUGUST 2026
QUESTION 1:
1. Facilitating Financial Success and Returns
A primary value-creating function of a business plan is to enhance the financial performance and
stability of the new venture. Theoretically, this is achieved through the structured process of
outlining cost estimates, profitability projections, and a clear strategic approach to pursuing an
opportunity (Becherer & Helms, 2009). This forces the entrepreneur to rigorously test the financial
viability of the idea before committing resources. The article provides empirical evidence from its
own study supporting this link. The findings indicated a significant relationship (p ≤ .08) between
having a business plan at start-up and achieving higher levels of "Financial Success" (measured by
five items, alpha = .86). Furthermore, the study found a marginally significant relationship (p = .07)
between using a business plan and the "Satisfactory Achievement of Financial Return Goals"
(Becherer & Helms, 2009). This suggests that the planning process helps founders make more
informed decisions that directly contribute to a venture's profitability and ability to meet its
financial objectives.
2. Creating a Sustainable and "Excellent" Organization
Beyond immediate financial metrics, a business plan serves a crucial function in building a strong,
sustainable organization with a long-term vision. This aligns with the theoretical perspective that
the plan is not just for securing funding but also for "actual planning within the business" (Becherer
& Helms, 2009, citing Hannon & Atherton, 1998). By requiring founders to think through logistics,
pitfalls, and possibilities, the business plan helps clarify goals and establish management practices.
The study's empirical findings strongly support this value-creation function. It found a significant
relationship (p = .03) between the use of a business plan and "Strong Company Success" (Becherer
& Helms, 2009). Most notably, there was a significant link (p = .08) between using a business plan
and achieving a high score on the "EXCELL" measure, an adaptation of Peters and Waterman's
attributes of excellent companies. The authors interpret this to mean that the business plan is an
"initial step toward building a strong sustainable organization with a dedicated employee base and
an employee centered corporate culture" (Becherer & Helms, 2009). This highlights the plan's
function in fostering a corporate culture and operational framework conducive to long-term
prosperity.
