In addition to expanding its healthier and more natural product lines, Campbell’s has also announced it will be implementing zero-based budgeting. It expects to save $200 million off its expected annual costs of close to $7 billion.
- What is “zero-based budgeting”?
- How does Campbell’s expect that it will save $200 million by using zero-based budgeting?
- What are some potential drawbacks to Campbell’s from its use of zero-based budgeting?
For the final thoughts on budgeting, it might be helpful to rethink about how we create budgets, who creates them and what motivation the person might have for the budget figures. This video discusses the difference between participating and traditional budgeting.