2 Liquidity crisis, etc. We realized that we couldn't live with the old planning methods and scope. Many people's concept of planning is still in the 1960's. Many try to deterministically predict and plot their course for the next ten years. We don't live that way. The techniques of the 60's don't work. This was perceived early by GE. We redefined it. Q. What was the re-definition? A. A very sharp focus on the use of increasingly scarce resources for competitive advantage in our volitile environment. Of course the definition and orientation of strategic planning is heavily influenced by GE. Not many people have 50 large-scale businesses. It certainly makes a difference ...in what you can do and need to do. It gives you more freedom. It gives you greater environmental sensitivity. It gives you a greater perspective on which industries are getting stronger. Here we come to the rather unique thing that made GE a leader. It raised investment priorities from the product-market level to the business-industry level. It developed attention on total industry attractiveness. In other words, it saw the wood for the trees. It did make a tremendous difference. Q. Who does it? A. The process involves all 43 SUB's developing strategic plans...then discussed with Corporate. At the same time, Corporate develops a plan. Process is a dialogue. It's a style of management. Managers spent a great deal of time in strategic planning. Involved in debate and analyses of which industries are becoming more attractive for profitable investment as the result of shifts in environment. Q. Some examples of divestment? A. Computer, but pre-dates the system. Integrated circuits, a very major decision, and one of the very early ones under the new strategic planning. General Learning. Tomorrow Entertainment, a venture that clearly didn't fit. The Christmas-Glo product line in lamps. Again plastics...generally a growth business... some harvesting in phenolic product lines. Sold magnetic materials business to Hitachi, again directly as a result of the strategic planning procedure. I could make you a list with the dates. A large category where we just divested. Exits, of course, are more visible. Other are harvesting. Receiving tubes not used any more, but there are lots of sockets still out there. So this is a declining business. Suffice it to say, in the harvesting category we may have in excess of $600 million in