Question

1. One of the biggest problems faced by many entrepreneurs, according to your textbook, is the tendency to “chase too many rabbits.” In your own words, please explain what this means. (Hint: this phrase does NOT mean taking on too many tasks at once.)
2. Give an example of a company – big or small – that chases too many right now in your opinion. Why do you feel this way?
3. How will you avoid chasing too many rabbits in your business?

*Please explain in detail so I can understand the concept well*

Answer 1

Too many rabbits mean multiple important tasks or goals being handled at the same time. Just like catching too many rabbits at the same time is challenging, firm must focus on one goal at a time and try to accomplish it. In my opinion, Colgate is a company which is focusing on too many rabbits right now. They are launching new products in toothpaste category to meet the diversified consumer needs. The new products include Herbal segment, Naturals segment etc. At the same time, they are diversifying the product portfolio by coming up with new Personal care and Home care products like Soap Bar, Deodorants etc. Due to this, company is spending money in multiple direction and not able to concentrate on one goal at a time.