EXHIBIT 99.522
PEROT SYSTEMS
SHORT TERM STRATEGY
LONG TERM STRATEGY
ROSS PEROT
FUNDAMENTALS FOR BUILDING PEROT SYSTEMS
o The only reason for a company to do business with Perot Systems is that we
provide the finest services of any company in our industry.
o Perot Systems can only provide the finest services if we have the finest
people
o These people must be fully trained in the latest technologies.
o In addition to their training, our people must have the highest
morals, ethics and integrity so they can earn and keep our customers'
trust.
o They must be focused, disciplined, and results oriented.
o In order to find people with these qualities, we must have a world class
recruiting team to bring in sufficient numbers of people with these
qualities.
o We must have an exciting, challenging working environment that recognizes
and rewards outstanding performance in order to keep the best people in our
company.
o Perot Systems must have a world class training program, so that our team is
at the cutting edge of the latest technologies.
o Throughout our company, we must recognize and reward excellence in an
appropriate, timely manner so that every team member knows their work is
appreciated.
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PEROT SYSTEMS CHARACTERISTICS
o Perot Systems is not capital intensive.
o The brains, wits, and creativity of our people will always beat massive
capital spending.
o Our company has long term contracts extending out to 15 years. These
contracts give the company excellent financial stability.
o Every contract is like one layer of plywood. As new contracts are
signed, the company gets stronger and stronger as new layers of
plywood come together.
o These long-term contracts ensure job security, financial stability,
and reliable, predictable growth in revenues and profits.
o Perot Systems is in a really unique position in terms of the size of the
market our business can serve.
o ANY COMPANY IN THE WORLD THAT USES COMPUTERS IS A PROSPECTIVE CUSTOMER.
o The market is so large that we must have discipline about where to focus
our resources.
o Perot Systems specializes by industry.
o We identify the largest industries in terms of computer use and go
into these industries first. Banking, Energy, Financial Services,
Health Care, Manufacturing, and Leisure and Travel industries are good
examples.
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o We have acquired small, high talent, results-oriented consulting firms
who have already established excellent reputations in Banking, Health
Care, and other major industries, to help us as we enter these
industries.
o We must build outstanding marketing teams with in-depth knowledge
about each industry.
o The next step is to sell a prominent company in that industry.
o Then, we assemble a first class team of associates to work with that
customer, including people who have already established an excellent
reputation in that industry.
o The next critical step is to do an outstanding job for that customer
and create a strong reference point.
o We then conduct an intensive marketing program with other prominent
companies in that industry to broaden our business base, using our
first customer as a reference.
o After we have sold five customers and successfully installed their
systems, almost any requirement of another customer in that industry
can readily be met.
o At that point, we have a large number of experienced people who have done
outstanding work, a good reputation in the industry, and we can quickly
expand across the industry without having to develop massive amounts of new
capabilities for each customer. This gives us a competitive advantage and
increases our profit margins.
o We will follow this strategy, moving on to other industries.
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o Our limiting factor in expanding to additional industries is having
enough skilled people to successfully accomplish the mission.
o International expansion -
Major markets such as China, Japan, Russia, and Southeast Asia are
unique. Our strategy to enter these markets will probably require us
to seek a partner in each of these countries.
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VISION FOR UPS AND PEROT SYSTEMS WORKING TOGETHER
TO CREATE MAJOR NEW OPPORTUNITIES FOR UPS
1. Keep UPS and its customers at the cutting edge of information services
technology and do it in a cost-effective manner.
2. Make sure that the whole world knows that UPS leads all of its competitors
in the effective use of advanced technologies and the benefits of these
technologies to UPS customers.
3. Work with UPS and Perot Systems' major financial customers, such as Swiss
Bank and Citibank, to create worldwide ventures that would benefit all
parties.
4. Work with UPS to create its own version of GE Capital, i.e., UPS Capital
Corporation.
5. Work with UPS to create a network that allows people to order products
through call centers or e-commerce transactions that UPS would purchase
directly from the manufacturers and ship to the customer. The profits
normally realized by distributors and retailers could be realized by UPS,
in addition to the revenues and profits from delivering the packages.
6. Work with UPS in such areas as recruiting talent, using the Perot Systems
recruiting team and training UPS systems engineers in the newest
technologies and leadership.
7. Bring Perot Systems and affiliated companies' experience in successfully
building industrial airports that include truck terminals, rail yards, air
transport, and large numbers of warehouses and factories on the airport
property. These
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opportunities exist throughout the world around abandoned military bases.
UPS could make a great deal of money by carefully selecting locations to
build facilities of this type. There are great financial opportunities on
real estate and warehouses built on the perimeter of the airport.
8. Use our contacts and relationships to work with UPS in countries where
there are huge future opportunities, such as Russia and China.
9. Work with UPS on a plan to provide new technology to cost effectively ship
heavy goods that are now being shipped by container ship, across the ocean
in less time, by air. A video presentation of one idea is attached. Ross,
Jr. has worked with Lockheed on this project.
10. Perot Systems will actively work to assist UPS in selling major new
accounts, or in any other constructive manner, including working with the
pilots and truck drivers' unions, if we can be a positive factor, and we
have been effective in helping in these areas.
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SUMMARY
This plan will keep us fully productive for at least 25 years.
We will not produce lengthy, detailed plans to enter new business areas. Over
the last 40 years, we have competed successfully against huge companies who had
multi-volume plans, typically written by creative, intelligent advisors who had
little or no knowledge of the harsh reality of getting things done.
Technology changes so rapidly in our industry that long-term strategic plans
that dictate step-by-step actions to people in the field, always fail because
they stifle the creativity of the people closest to getting the job done.
Our plans are in outline form -- and are written just before a team goes to
work, with the team having a great deal of input.
We keep these plans dynamic, changing them as we gain more insight.
Again and again, we have competed and won against huge competitors who had
detailed, rigid plans created at the corporate level that turned the people on
the project into loyal, obedient robots -- who lost the competition.
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