Zero-Based Budgeting

: Von der Strategie zur operativen Planung

Abstract

This bachelor thesis explores zero-based budgeting (ZBB) as an alternative method to traditional budgeting and financial planning tools. Due to the fact of growing market uncertainty, increasing pressure for efficiency and transparency and the need for strategic resource allocation, zero-based budgeting (ZBB) is gaining relevance, both in theory and in practice, as shown by the example of FACC AG. In contrast to conventional budgeting methods, which simply rely on the updating of historical budget values, zero-based budgeting (ZBB) requires a complete revaluation of all expenses from scratch in each planning period. The main goal is to identify unnecessary costs, improve the effectiveness of business activities and aligning budgeting more closely with the company’s current goals. The scientific method of literature research is used to develop the results. The focus is on a systematic analysis that concentrates on the theoretical foundations and practical effects of zero-based budgeting (ZBB) regarding cost efficiency, competitiveness and sustainability. Therefore, internal databases such as PRIMO and WISO as well as external platforms such as Google Scholar, SpringerLink, and Wiley Online Library are used. In addition, company reports, industry analyses and studies from leading consulting firms are included. The empirical part of the thesis consists of a data analysis based on internal and publicly available documents from FACC AG. This analysis aims to evaluate the practical feasibility and potential effects of ZBB in a specific case. Firstly, the paper provides an overview of key terms to ensure a general understanding of the topic. This is followed by a detailed description of zero-based budgeting (ZBB). Afterwards, traditional budgeting approaches as well as the challenges and success factors in the implementation of zero-based budgeting (ZBB) are highlighted. The empirical part investigates how zero-based budgeting (ZBB) could help to improve cost structures and support the sustainability goals of FACC AG. Finally, the findings are critically reviewed, practical recommendations are provided and an outlook on future developments is given.

Date of Award	2025
Original language	German (Austria)
Supervisor	Peter Hofer (Supervisor)