Figure #1

Lucky Alva
(Being a fanciful account of a company's high level research committee meeting)


VLADIMIR HAENSEL
Vice President and Director of Research,
Universal Oil Products Company, Des Plaines, Illinois

PRESIDENT
"Gentlemen: Today we are discussing our research programs - as you know the procedure involves the presentation of research, finance, and corporate planning concerning the propsed research programs. However, before we begin, I would like to emphasize that, according to our established policy, these research programs have to be appraised intensively in terms of their potential value to the company's growth and profit objectives, and I trust that in the preparation for this meeting you have kept this uppermost in your mind. Also remember that through our aggressive marketing, acquisitions, and mergers we have become one of the leading companies in the kerosene lamp business and our research is here to extend our business in this very important field. Let us now hear about our research programs."


VP RESEARCH
"We have on the agenda three research programs and I wish to tackle the one involving a smaller expenditure first. We have on our research staff a Mr. T. A. Edison who has come up with a rather unorthodox idea. He believes that broadly speaking our keresene lamps are used primarily as a source of light and he has been thinking of other possible sources of light. I admit that his experiments, although quite crude and preliminary, do indicate that a light can be produced for short periods of time from electricity. I have examined his proposal from the standpoint of technical feasibility and research cost and find that although technical feasibility is relatively far-fetched, the research cost for the next fiscal period is reasonably low and our risk is therefore quite limited, not to exceed $3,000 for the next two years. Mr. Edison believes he can shorten the research time appreciably if he is allowed to work at night - but you know our saftey and security rules won't allow this. I have discussed this research program with our finance and planning VP's and would like to hear their report."


PRESIDENT
"Before we hear from finance and corporate planning I would like to know more about this man Edison and his research."


VP RESEARCH
"Edison appears to be a very ingenious fellow - not much education - and our main trouble with him is that we have difficulty in keeping him on the track of our business. Nevertheless, in line with our policy of allowing our research people some experimentation on their own, he has built a battery which provides a source of electricity to a very thin carbonized cotton thread housed in an evacuated glass bulb. The connection between the carbonized cotton thread to the outside connection to the battery is accomplished by means of a platnum wire which has about the same expansion as the glass. As you might expect, so far he has had a great deal of trouble with the connections and burning out of threads and breaking of the bulbs. Nevertheless, there have been momnets where the thread does glow inside of the bulb and with luck you can almost read by that light."


PRESIDENT
"Thank you. Now let us proceed to the report from finance."


FINANCE
"We have discussed this program at great length with our market research and sales people and I must say that, although our research investment risk is not substiantial, our people take a very dim view of the proposal. We are speaking of putting out a product that is in competition wiht our major product. This new product, as th VP Research has pointed out, requires a battery to make it operative. I also understand that the battery is a rather large and bulky piece of equipment and wires have to run to the so-called electric lamp. Compare this with our latest compact kerosene lamp - steamlined, portable and so easy to light. In defense of Mr. Edison's proposal, I must admist that he thinks that one large battery might serve an entire house, but putting wires all over the house seems rather impractical. In fact, Mr. Edison has even suggested that a giant battery could serve a whole village - but think of all the wires that would have to be strung.
"I also note that Mr. Edison proposes to use platnum wires as a part of the lamp. Now you all know that platnum is not only a scarce and expensive metal but it is also of foreign origen, and where would we be if the source of the supply is cut off?
"I do not wish to transmit some of the language that some of our most qualified market research and sales people have used in impartially evaluating this program, but it appears to me that it has no place in our industry. However, if the research team wishes to indulge in such work, we could allow the sum of $1,500 fo rhte next two years to reduce our risk further."


PRESIDENT
"Thank you - now for the report from corporate planning."


VP CORPORATE PLANNING
"We to have given a great deal of thought to this segment of the total research program. Please remember that we in corporate planning must gaze into the future in line with our corporate aims and render judgment on these matters. This is a most difficult task, but our procedure is well worked out. Our main question is 'How does Mr Edison's program fit into our corporate plans?' I must emphasize that our corporate plans are so well prepared and organized that we must by all means try to fit research programs into our corporate plans and certainly not the reverse. Let us now consider the question on hand. As you know we have recently made two very important acqusitions. One is a small but vigorous company specializing in wick-knitting. As you know, our research has not been able to develop a good method for wick-knitting and we decided to buy a company which has succeeded in this difficult area. Without appearing critical, I might say that if our ingenious Mr. Edison had concentrated on wick-knitting, we would not have had to purchase this important development. In any event, this new acquisition should strenghten our position, since I do not need to remind you that in the most recent public acceptance test we did not do well with 'Corplite' because of poor wick performance. Our other acquisition should further enhance our strong business position. As you know, we have acquired an interest in an oil treating company. Their kerosene is far superior to the kerosene we are now perchasing for distribution to our sales centers. This provides us with a substiantial potential profit for many years to come. You should also know that we are negotiating with a small glass company which has a new type of glass to fit our lamps. This glass is particularly effective with respect to better light transmission and we are hopeful to complete our negotiations shortly. Before this meeting our president told me that he did not object to my disclosing to you these negotiations, but please keep them in strictest confidence.
"Now, you might wonder about the connection between these acquisitions and Mr. Edison's program. I tell you that it has a most important connection. Just consider, gentlemen, what would happen to our acquisition if Mr. Edison's programs should be successful? What are we going to do with our acquisitions? What about all of our other corporate plans?
"Fortunately for us, the chances of success are very small and we should proceed as per our well-worked plan of increasing our profits. My recommendation is to abandon this particular research program. Could we go on to the other research program, and I am particularly interested in the automatic wick height regulator that our research has so ably worked out."


PRESIDENT
"Before we go on to the next program, interesting as it may sound, we should reach a decision about Edison's program. I would like to suggest to our VP Research that in view of the excellent commments that have been expressed we decide to provide Mr. Edison with a sort of token expenditure for this program, amounting to $750 over a two year period. This will show our continued interest and encourage him to take this on as a type of supplemental program to his other more important work."


VP RESEARCH
"I shall do my best to convey this to Mr. Edison - Thany you for your most encouraging comments. Now - for the automatic wick height regulator research program. . . ."


Associated with Universal Oil products since 1937, Dr. Haensel filled assignments of increasingly greater responsibilites, assuming his current post in 1964. Early in his career, he has an assistant to the renowned scientist V. N. Ipatieff. His own achievements have been honored on numerous occasions. He was awarded an honorary doctorate by Northwestern University, and in 1965 he received the Modern Pioneer Medal in Creative Chemistry from the National Association of Manufacturers. He was awarded the Perkin Medal in 1967.