Company “E” is the leading sweet producer in Finland. It exports products all over the world and about 60% of the US$400 millions turnover comes from abroad. The assortment of company E has a wide scope, that is with the idea “products for everyone”. For instance, in 1991 the company mar- keted over 600 kinds of chocolates. As the range of products got wider, the complexity of production increased and managing the business became very difficult. In the early 1990s company E realized the need for a new strategy. The cornerstone of the new strategy is to improve the effectiveness of the sys- tem using the economies of scale. Nordic countries are the home market and demand a wide range of brands of products. To fulfil this strategy, it has been identified that ABC is required to determine the actual profitability of the products. It was also clear that before it could be introduced in the organization, all the managers