Document 2jkNzZnrZQ5LmYknvVrENYrdb

UC 14W INTERNAL CORRESPONDENCE METALS DIVISION To (Nam| Division Location Messrs. Copy to K. E. Helminiak J. G. Holmes J. L. Myers W. A. Rasmussen R. W. Rebholz H. B. Rhodes F. J. Shorts!eeve<;--* P.O.BOX 1029, GflA-NfeJl/NCTION,COLORADO 8150) Oat* March 23, 1979 PLAINTIFF'S EXHIBIT Originating Oept, Answering fatter Cate Subject UC-2206 Outline for Presentation of Strategic Plans I believe that you will be interested in the attached outline that is suggested for use in presenting strategic plans to the management committee. This outline was reviewed in the uranium wrap-up meeting last week. In regard to the asbestos and calcium carbide planning sessions coming up soon, the outline should be helpful in pointing up some of the information that will be required for these sessions. HKJ:bnw Attachment i. K. Jackson UCC 004100 OUTLINE FOR STRATEGIC PLAN PRESENTATIONS March 19, 1979 Introduction. Definition and description of the industry and the business. Industry profile. Competitive profile. Matrix position, and location of competition on the matrix. Description of competition. Review of current strategic direction. Key external planning assumptions. Selection of strategic directions} for strategy development. Generic and specific strategies for each strategic direction considered. Summary of cost-benefit-risk for each strategy. Recommended strategic direction and strategies. Strategy indicators, check points, and contingent strategies for the recommended plan. Summary and conclusion. UCC 004101 pFTATT.yp OUTLINE FOR STRATEGIC PLAN PRESENTATIONS March 19, 1979 1. Introduction The presentation to the Management Committee is introduced by the division president. Copies of the most important presentation slides are distributed to each member of the Management Committee about a week before the presentation. 2. Definition and description of the industry and the business The industry and business definitions are shown on a chart, supplemented verbally as necessary to establish a good understanding of the definitions. A broader description of the industry and the business is then presented, using material such as the following: a. Schematic of the industry, its major segments, markets and product flows. b. Size of the industry and the business. c. Unique characteristics and major uses of the industry products. Samples d. Location and description of the major facilities and products of the business. ' e. Special features, such as being exploration intensive. f. History of the industry, and the business. g. Financial summary of the business for the past five to ten years. Show sales, net income, /share, ROS, ROA, cash generated. In some cases it may be desirable to touch on some of the industry or competitive profile factors in the above description, but these factors should generally be held for later sections of the presentation. 3. Industry profile First present the industry profile showing the assessment of all factors, with the critical factors identified by circles and/or color coding. Then present the industry profile using only the critical industry factors (see Chart 3-1 for an example of the second chart). During presentation of these charts give the basis for the assessment of the critical factors, and comment on selected non-critical factors as necessary to fully understand the industry prospects for volume growth and earnings quality. Additional charts may be required. The chart of critical industry profile factors and their assessment shows the major strengths and weaknesses of the industry, and this should be noted. UCC 004102 4. Competitive profile First present the competitive profile showing the assessment of all factors, with the critical factors identified by circles and/or color coding. Then present the industry profile using only the critical competitive factors (see Chart 4-1 for an example of the second chart). During presentation of these charts give the basis for the assessment of the critical factors, comment on selected non-critical factors, and describe the competition as necessary to fully understand the competitive environment. Additional charts may be required. The chart of critical profile factors and their assessment shows the major competitive strengths and weaknesses of the business, and this should be discussed. 5. Matrix position, and location of competition on the matrix Point out the position of UCC and the major competitors on the matrix. Explain why major competitors are located as shown on the matrix (explain in terms of the critical competitive factors). Additional charts may be required. Be sure to adequately describe the competition and the potential competition. This should include an assessment of the current and probable future strategic direction of present competitors, and an assessment of the prospects for having major new competitors. 6. Review of current strategic direction Review the current MC strategic direction setting letter for the business, and summarize the progress/performance of the business in following this direction. Start with a review of direction vis-a-vis competition (i.e., improve, maintain or concede position), and then cover progress/performance in following MC direction for such factors as investment mode. Review the strategies being used, and tell whether or not the strategies are working, as determined by previously established indicators, performance standards, and other factors. It may also be helpful to state the actual business direction and key strategies employed in earlier periods (such as in the past five or ten years). Much of the above review in this section should be built around the critical competitive factors as developed in Sections 3 and 4. 7. Key external planning assumptions Only the most critical external planning assumptions need be presented. 8. Selection of strategic directions) for strategy development State what directions (improve, maintain, or concede) were selected for strategy development, and why these directions were selected, particularly why any unnatural directions were selected. -2UCC 004103 9. Generic and specific strategies for each strategic direction considered Present the generic and specific strategies for each strategic direction, the rationale, and the most important functional programs. 10. Summary of cost-benefit-ri3k for each strategy For each strategy present key financial performance data, including revenue, expense, capital, income, cash flow, return on investment. Give this data year by year for the first several years of the plan, for typical years later in the plan, and overall for the plan period. Summarize also the projected results in competitive position, based on projected changes in critical competitive factors. The assessment of strategic risk should be based on the following factors: a. Matrix position b. Naturalness of the strategy c. Magnitude (degree) of performance improvement d. Industry e. Assumptions f. Track record of predicting performance 11. Recommended strategic direction and strategies Identify the strategic direction and strategies that we believe have the best mix of cost-benefit-risk. Explain why we think that this direction and strategy package is the best. Explain why we believe that the business has the capability to carryout the recommended course of action. 12. Strategic indicators, check points and contingent strategies for the recommended plan. 13. Summary and conclusions Be sure to include a statement of the issues to be decided by the MC (maybe a simple endorsement of a direction, or a more complex direction of some kind). By the end of this session we should be sure that the MC understands what we are waiting to hear. -3UCC 004104 Time Frame: Critical Industry Factors 1. 2. 3. 4. etc. CHART 3-1 INDUSTRY PROFILE Prospects for Volume Growth and Earnings Quality ____ High Moderate Low - Volume Growth % Earnings Quality Overall Assessment UCC 004105 CHART 4-1 COMPETITIVE PROFILE Critical Competitive Factors 1. 2. 3. 4. etc. OVERALL Leading Strong F air Weak UCC 004106 ATT. 29 Markets for "Calidria" - Not Typical Asbestos v I. Adhesives Total market 3MM tons - portion requiring viscosity additives 125,000 tons - assuming 2% addition level - market "available" 2500 tons "Calidria" share - 280 tons (11.2% of total) Major competitors - National Lead (Bentones) Cabot Corporation (Cab--0-Si 1) Other (Thixcin, etc.) Market share: Cabot 452 National Lead 392 v/ 'Calidria" 11% Others 5% II. Sealants Total market about 150,000 tons split as follows: Construction 90,000 tons Automotive 30,000 II Glass (Insulating) Aircraft 6,000 It 1,000 Highways & Airfields 15,000 It Appliances 7,000 It Assuming a 1% loading of viscosity additive, a market of 1500 tons is available. UCC 004107 "Calidria" share 430 tons (28.7% of total) Major competitors - Cabot (Cab-O-Sil) National Lead (Bentones) Market share is split as follows: Cabot 45% National Lead 26% "Calidria" 29% ATT. 30 III. Polyester Laminates Total market for thixotropic laminates 340,000 TPY Assuming 1% average addition, 3,400 TPY available "Calidria" share 100 tons (2.9% of total) Major competitors - Cabot Corp.. (Cab-O-Sil} DeGussa (Aerosil) Others (Thixcin, Ircogel, etc.) Market share is split as follows: /Cabot Corp. 7o% / DeGussa Others 24% / 3% "Calidria" 3% IV. Coatinqs Total market for thixotropic, viscosity modifying and pigment suspending \ agents is 4600 TPY (1% of 460,000 TPY) "Calidria" share is 550 TPY (120% of total) UCC 004108 Major competitors - Cabot Corp. (Cab-O-Sil) DeGussa (Aerosil) National Lead (Bentones) Baker Castor Oil (Thixcin, Thixatrol) Others Market is split as follows: Cabot 30% DeGussa 20% National Lead 20% Baker Castor Oil 13% "Calidria" 12% Others 5% REBtdal 4/30/79 UCC 004109 S irrfT L(.^. "TVviS . 3 1/ ^ . 'Ti^s %TJ: T lbi^> UCcE. 33ibc o /? 3"/^ (s^^j 33o co HO 00 z 3<: ^Has -2.1^07) 2./ 13ft ccc /oo ~7Hoc /S' l -Soao 36" 2. ^/oOO 5^>` - r? o 4c^crtrD /oo 3 S.000 IS /Zoco U'vfaoa WVoo x7 31 li, ncooo IqO UCC 004110