3 - yourself. In effect, you develop what you would do if you were the competition, etc. We've done this. What this provides is a matrix to know our various resources. Tie specific dates to this, etc. This is top-down look at the corporate level. (More explanation of strategic planning.) Q. When did formalized planning start? A. I guess we formalized it in 1969 or 1970. In the first two years we made more progress than I thought we would. It's been a gradual honing down process ever since. We've got it in pretty good shape. It's nothing revolutionary. A way simply of disciplining our operations. Q. Was this adopted because in the past some moves didn't work out? A. It's a great hockey-stick effect we have here (Explains). Managers used to spend much time working on next year. Work necessary for five years out was not done. Of course, exceptions like aerospace and aircraft engines. Even development work there takes years. Q. In the past then, you didn't do this systematic analysis? A. We've placed a discipline on it we hadn't have before. I think that's the best way to describe it. Q. Could we resume your explanation of acquiring businesses in the 60's and divesting in the 70's? What happened? A. We made a study in the 60's, and the conclusion was correct...that there were vast opportunities off-shore we were not tapping. So various operating entities were encouraged to look to see what could be done better off-shore. For example, we bought a couple of small appliance plants in Germany. We bought them laboring under the misapprehension we could run them more efficiently than they'd been run in the past. At least one of them was thought of as distressed merchandise. There were several plants acquired in this fashion. I guess that with one or two exceptions by 1972 all had been sold or disposed of because the approach we took was not thought through sufficiently. What this does is to tell you to go back to the drawing board and rethink some of your international strategy. One thing we learned of this is that if you're going to make an acquisition, you ought to buy it because it's damn good and has good management and you pay the price for it going in instead of looking