2- a new GE and he intends to take it forward. It's working. Growth has been good, partially because of growth in new businesses and partly because of appropriate pruning. Need for sophisticated managers to be entreprenuerial and to know how to harvest businesses. Q. Example of harvested business? A. I'm more comfortable staying with the consumer sector. One example was the portable phonograph business. This is a case where we were number one in this youth market. Still we couldn't make money. Why? Not because of high labor costs in Decatur, Illinois. It wasn't the Japanese problem. It was more of a distribution problem. Our distribution channels were not for this class of 'toy-oriented' merchandise. (Explanation of ditribution system.) So we harvested it. A different situation on audio components... a massive business. Far East sources very active..many Japanese suppliers really fighting...a cost battle with them. We were competing in a lower class category...a very rough market. We could have gone up one class but in terms of investment we would have had to go offshore...too much capital needed. So we harvested in 1974 and 1975 simultaneously with portable phonos. Q. You usually lose money in a harvest situation? A. Hard to say. It's possible to increase your return as you raise prices to lose share of the market. Generally you have to determine why you're getting out: no long-term return commensurate with corporate goals, or some political problem with a country. We also might invest money in a business recognizing responsibility to community and employees. We take that very seriously. Q. In this example what happened to the Decatur plant? A. It's available for sale. (Explanation of how businesses within GE are required to look at existing vacant space when expanding.) Tomorrow Entertainment was another one. Actually not a good example. We went into movie and television production to supply a broader plant, Command Performance. We went into total entertainment when we shouldn't have. It was clear in the early stages it wasn't going to be a viable business. If we don't miss some, however, it's because we're not hitting enough. Q. You must have had a loss. How much was it? A. I can't tell you that.