EOTT FUTURE STRATEGY

SENT ON BEHALF OF MIKE BURKE

With your input, I developed the following documents (attached below) about
six months ago.

EOTT Guiding Documents

EOTT Energy Strategies

EOTT Core Competencies & Company Strengths

With your continued help, what we now must do is to sharpen and focus our
strategy and decide what we will select as the critical few core competencies
of EOTT. (Trying to be all these thing to everybody id tantamount to being
nothing for anyone) We must find the unique value that we alone can and will
deliver to our chosen market.

As outlined in Michael Tracy's "The Discipline of Market Leaders," our task
is to define and develop three essential concepts.
1. The value proposition: The implicit promise EOTT will make to customers
to deliver a particular combination of values, price, quality, performance,
solution, convenience, etc.

2. The Value driven operations model: The right combination of operating
processes, management systems, business structure, and culture that gives
EOTT the capacity to deliver on its value proposition.

3. Value discipline: EOTT must choose one of the three value disciplines
below on which to stake our market reputation.

Operational Excellence: (Middle of the market products/services at the best
price with the least inconvenience) or
Product/Service/Leadership (the very best performance in product/service) or
Customer Intimacy (selectively chosen customers/best solution for unique
customer/customer intimacy)

I will provide the first draft of a much more focused and disciplined
strategy in the next few days. Your input is always welcome.