1. How will zero-based budgeting impact Unilever?
Original blog posting (March 1, 2016)

2. 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 #

3. Question 1
What is zero-based budgeting?

4. Question 2
What is operating margin?

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

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

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

8. 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?

9. Question Recap What is zero-based budgeting? What is operating margin?
How would zero-based budgeting help Unilever increase its operating margin?
How would zero-based budgeting impact Unilever’s cash flows?
What benefits does zero-based budgeting potentially hold for Unilever? What disadvantages?
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?

10. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at