What is zero-based budgeting

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Reference no: EM131640219

Consumers are increasingly distrusting “Big Food,” and Campbell Soup Company (CPB) is working to counter the effects of that trend by offering more healthy or natural alternatives. For example, Campbell’s recently introduced a new line of organic soups, Campbell’s® Organics, and acquired both Bolthouse Farms juices and Plum Organics baby food.

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?

Reference no: EM131640219

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