Friday, September 22, 2006

Management Lesson 9/10

Several years ago, the founder of Wrigley Chewing Gum was on a flight from New York to his home in Chicago. The passenger in the next seat recognized the chewing gum tycoon and asked him a question. "Mr. Wrigley, I know your company enjoys over 90% of the chewing gum market. Yet, last week I read you are increasing your advertising budget by over 30%. With such a large share of the market, why do you continue to spend so much on advertising? Why not save that money or use it for something else?"
Mr. Wrigley replied, "How fast do you think this airplane is flying?" The man answered, "Oh, I guess about 600 miles per hour." Mr. Wrigley responded. "I think that's fast enough, don't you?" The man agreed that indeed, it was fast enough. "Well then," asked Mr. Wrigley, "why doesn't the pilot turn off the engines and save all that expensive jet fuel?"