How will zerobased budgeting impact Unilever Original blog

How will zero-based budgeting impact Unilever? Original blog posting (March 1, 2016) Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.

Unilever • Unilever is a multinational consumer goods company with 4 main divisions: • Foods, Refreshments, Home Care, and Personal Care • Has brands such as Dove, Hellman’s, Lipton, and Ben & Jerry’s • Recently implemented zero based budgeting, which is expected to save the company about $1. 09 billion per year by 2018 Source: Depositphotos. com image #80685478

Question 1 What is zero-based budgeting?

Question 2 What is operating margin?

Question 3 How would zero-based budgeting help Unilever increase its operating margin?

Question 4 How would zero-based budgeting impact Unilever’s cash flows?

Question 5 What benefits does zero-based budgeting potentially hold for Unilever? What disadvantages?

Question 6 Put yourself in the position of a brand manager for Unilever. Imagine that your brand has been performing well over the past three years. How would you feel about the zero-based budgeting initiative? How could this impact your work performance?

Question Recap 1. What is zero-based budgeting? 2. What is operating margin? 3. How would zero-based budgeting help Unilever increase its operating margin? 4. How would zero-based budgeting impact Unilever’s cash flows? 5. What benefits does zero-based budgeting potentially hold for Unilever? What disadvantages? 6. Put yourself in the position of a brand manager for Unilever. Imagine that your brand has been performing well over the past three years. How would you feel about the zero-based budgeting initiative? How could this impact your work performance?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http: //accountingintheheadlines. com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent. edu Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.