STAR*TECH JOURNAL/SEPTEMBER 1983
10
BALLY
MR. & MRS. PAC-MAN TOP SAUCER PROBLEM
By Brad MacPherson, Dream Machine, Inc., Springfield, MA
Here is a problem and solution which you may or
may not have come across. The top left saucer on
Baily's pinball, Mr. & Mrs. Pac-Man, is a double
coil setup. Normal operations call for the ball to be
ejected upwards after awarding points, and down-
ward after the maze is played. The problem arose
when the" regulars" found that by repeatedly firing
both flippers Uust as the ball landed in the saucer),
power was reduced and the ball would fall back
into the saucer, awarding more points and so on.
The solution was to switch the coil wires
around so that they fired in opposite directions.
Even if the players fire the flippers after the maze,
it will only fall back once before being sent
downward. This stopped alot of free games, long
plays, and service calls to retrieve stuck balls.
I hope this solution helps other operators with
the same problem.
0
TEN WAYS TO RUIN YOUR BUSINESS
By Rick Krepela
Businessmen fail even in these days of prosperity
- turning otherwise profitable enterprises into
dismal failures - often in surprisingly short time.
A highly detailed survey was recently conducted
by the Bureau of Business Research of the Univer-
sity of Pittsburgh. Their investigators uncovered
thirty management "traps".
Red ink, according to the authors of the survey' s
report, is an indication, not a cause, for a breakdown
in a company's health.
Being guilty of one failing of the ten major ones
outlined, or a combination of several, can sink any
profitable business into oblivion. Whether a firm
is a giant in its field, or is a relatively small firm, the
businesses which fail are guilty of one or more
lapses of good management, and fall into one or
more of the following traps:
1. Keeping Inadequate Records:
The surest way to run afoul of accountants and tax
collectors is to conduct your business with" scraps
of paper". A drawer full of bills, a stack of
statements and notations on the back of envelopes
detailing sales orders is not the same as a carefully
kept set of records.
Poor records lead to an absence of adequate
financial information to allow management to
know the results of operations.
While larger firms often skirt this problem
because of full time staffs, inadequate record
keeping was the greatest single cause of business
failures unearthed. It was an important factor in
nine out of every ten firms studied. Management
did not KNOW they were heading for trouble until
it was too late.
2. Ignore New Developments In Your
Field:
Doing things in the same old way simply because
they were once successful is a sure way to invite
aggressive, up-to-date competition to take over.
Retailers need store modernization programs,
manufacturers must constantly improve their
products, and service industries must be on the
lookout for new and better ways to serve their
customers. The report emphasized that "keeping
abreast" was not only essential to a firm's growth,
but it detailed a number of instances where failure
to adopt new ways was a dominant factor in
leading to the " out-of-business" signs.
3. Incur Cumulative Losses:
A trickle of red ink isn't much to worry about, or is
it? At least 40% of the firms in the study discovered
that the "little" leaks added up to a torrent Add
one unproductive division, product or store to
excessive waste in some other area; couple it to
"minor" losses elsewhere, and the result can
wreck havoc with a firm's profit and loss statement
4. Hitch Your Wagon to One Customer:
Signing up a single big account to the exclusion of
others MAY look like an easy road to a secure
future. Manufacturers sub-contract one small part
for a larger firm, service industries latch onto a
single big account and think they have it made.
Sounds great! No sales headaches, only one cus-
tomer to keep happy but NO PLACE TO HIDE if
the account suddenly sours on you. The University
of Pittsburgh report shows that three out of ten
bankrupt firms fell into this particularly inviting
trap; found out to their chagrin that " friends in
court" move on, that the old saw about all your
eggs in one basket is all too true.
5. Be Your Own Expert
Trying to save money on professional advice can
lead to costly mistakes, the survey shows. Any
expert - production, sales training, distribution,
not to mention legal or tax aid - costs money. But
specialized opinions minimize errors; form a sound
basis for decisions. Operate solely on your own
hunches and half-proven guesses and you could
wind up making one or two company-killing
mistakes.
6. Build a Family Empire:
Nepotism may be one way to keep your family in
control, but look out Unless the relative is at least
as competent in his job as someone else you might
hire, the practice of burdening a payroll with
family members siphons cash from the till and
squelches initiative in non-family employees.
It isn't only a question of the cash drain going
out to a non-productive or lazy brother-in-law.
Think what happens to staff morale when con-
scientious, eager management talent finds the top
of the ladder blocked.
7. Forget About Cost Analysis:
So long as the checkbook shows a balance, why
bother? For one thing, the investigators proved
that unless a firm knows EXACTLY what it costs
to provide a product or service, the matter of
pricing is largely guesswork. Usually it boils down
to "meeting competition". Trouble here is that the
competition could be in the dark too.
Competition can only go so far in setting a
price. If you or your firm cannot provide a product
or service at a profitable price, it is probably better,
the experts agree, to drop it and let the competition
go bust. If the competition can handle the item
profitably, then something is wrong with your
costs. Only careful cost analysis can pinpoint the
faults.
8. Ignore Your Competitor's Mistakes:
Many business magazines detail glowing success
stories. Meet a guy at a convention, and he likely
will tell you about the things he's doing RIGHT.
But what about the companies that fall by the
wayside? If they are in your line of business, it is a
good idea to find out what happened
The answers may be more revealing than
studying - or worse yet, envying - the success
around you. Excessive inventory, poor sales
management, obsolete equipment or methods;
whatever the reasons, make sure your firm isn't
making the SAME mistakes.
9. Expand Beyond Resources
An enthusiastic salesman who signs up dozens of
big orders can throw a production schedule into a
tailspin if the company isn't geared to increase
output. Likewise, a prosperous business gulping
down "acquisitions and mergers" at the drop of a
stock-swap can soon find itself with headaches of
coordinating activities throughout a corporate
empire that were undreamed of when the company
was a single unit Again, if a company launches
new products before it has put a solid marketing
and servicing base under the old ones, it, too, has
expanded beyond its resources.
A really successful business, the study shows,
grows within its means. The rate can be fast or
slow, but it must have sound financial footing and,
above all, the management talent necessary to
consolidate new gains.
Also under this heading are such expansion
moves as runaway borrowing to purchase little
needed equipment or facilities. The report states
quite frankly that some lenders lack "proper
management and financial analysis" and that
credit to some thinly capitalized companies in the
study was surprisingly easy.
10. Let Everyone Shift For Himself:
The researchers cite several instances where
partners were so busy trying to outsmart each other
that otherwise profitable businesses were jeopard-
ized by the intramural struggles. Uneven work
loads on supervisory personnel, failure to delegate
authority along with responsibility, unusual or
unequal management privileges inevitably sap a
management team of its enthusiasm. Coordination
comes from the top on any organizational chart,
and the objectives and energies of a company must
come from this same direction.
Failure to provide firm guidance along these
lines results in either staff bickering or a company
figuratively set adrift. In either case, the manage-
ment breakdown can prove disastrous.
There are other points in the Bureau of Business
Research study. Failure to watch depreciation
schedules, neglecting to provide for a competent
successor to the present management, unequal
sales territories and a host of specialized reasons
by particular businesses went bust. But the ten
points listed here are applicable to virtually ANY
business, large or small.
Whether or not your firm is next on the red ink
parade depends in large part upon how well you
follow - or how cleverly you avoid - this
checklist of ten common management "traps".