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Birmingham Amusement Machines

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Birmingham Amusement Machines

Birmingham Amusement Machines was a company which manufactured gaming and video-amusement machines. The company sold its products to an operating company which distributed them to bars, country clubs, casinos and pubs. Both companies were started by Bob Greenwood, an engineer who was fascinated by the design of the early mechanical gaming machines. Largely through innovative design, the company had grown to be one of the four largest in the market with a 30 per cent market share.

Four years ago Bob Greenwood sold out to a large industrial group, but he was retained as chief executive of the manufacturing company. The new owners were happy to let Bob indulge his talent for design, especially since the company had entered the video-amusement market. Video-amusement machines did not pay out cash prizes like gaming machines, but allowed the player time on the machine to play a game, usually with a theme drawn from the ‘Wild West’ or ‘Interplanetary Space Warfare’. The company manufactured all parts for the gaming machines and assembled them in its factory. However, many of the components for the video-amusement machines were imported and only assembled into the outer casings in the factories.

Recently, the owners became dissatisfied with the company’s performance. The market for its goods was still growing, but the company’s profitability had failed to match expectations. The owners decided to install a new chief executive and to fire Bob, who was predictably upset at being replaced:

‘It’s always been the combination of high technology and fashion that’s fascinated me about this industry. You have to be first in the field with every advance in technology, especially now video amusements are a big part of our business, but you also have to keep an eye out for the fashionable trends. On average, we’ve brought out

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