2 - Q. What divestiture in your particular area? A. I was involved in computers. Incidentally, that could have gone either way. (Explanation of why, but why the decision was to sell.) Q. But that was some time ago. What more recently? A. In my side of the business, the ones we've gotten out of are foreign affiliates. I say grace on the engines business and aerospace. There's nothing to get out of there. Then in Special Systems and Products, transit cars are phasing down. We'll probably get out of transit cars...not locomotives. Q. But why? A. It's very difficult to see what the continuing demand will be. Q. With all this talk of energy? Mass transit is not a viable field? A. We take a look at where the orders are coming from and have to conclude that finding and obtaining business is very difficult. Talk to Tom Vanderslice on this. This is one of those things where you can't maintain a readiness to serve without business in the shop. Q. It's not a growing field? A. No. Locomotives are. Q. Now, I understand overall strategy. But to understand it and the new GE, I need a framework. A. The framework of corporate strategy has to be to make sure we live within our means. Each group has to develop plans to move itself. But someone has to oversee it. Must oversee priorities. Maybe we could do the whole thing. But we must look at our resources. Corporate strategy today is the sum of individual SBU's... 43 to 45 of them. (Explanation of SBU's.) We've been doing some of this for a long time out of necessity. In working with the government on aerospace we have to set up specific milestones for everything going on ahead if we're going to stay on schedule and on costs. We also have to reckon what are the effects if the government runs short of funds, if the program is stretched, etc. You have all these alternatives. It does furnish a very important factor for this reason: If you have intelligent, well-thought-out strategic plans, you have to know as much about your competition as