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JANUARY 6, 1986
By

(FORTUNE Magazine) – VOL. 113, NO. 1 CORPORATE PERFORMANCE America's Most 16 Admired Corporations IBM is first, Financial Corp. of America last in FORTUNE's survey of corporate reputations. by Cynthia Hutton How Commodore 30 Hopes to Survive On the brink of bankruptcy, it's betting the ranch on its new Amiga personal computer. by Monci Jo Williams Companies to Watch 32 THE ECONOMY Fortune's Forecast for the Next 18 Months: Hold the Bubbly -- 34 Growth Will Slow What the Forecast Means for 16 Industries 38 MANAGING Business Copes 47 With Terrorism U.S. executives aren't fleeing the problem, they're living with it. Except in Kampala. by Brian O'Reilly SELLING The Mad Rush 59 to Join the Warehouse Club TECHNOLOGY Moet-Hennessy: 65 A Champagne Maker Finds a New Fizz Being Your Own Bell 65 MONEY & MARKETS Is There Loot at 69 the End of the Chunnel? Needham & Co.: 69 Financial Ambulance POLITICS & POLICY California's Coelho: 71The Democrats' New Money-Raising Champ Banking's 71 Bad Year Budget Cutting 74 PROFILE The Would-Be Queen 76 of Revlon's Beauty Business Fiery, sometimes imperious Linda Wachner could fit right into Charles Revson's shoes. by Colin Leinster People to Watch 80 LOOKING AHEAD Who Will Survive 82 the Microchip Shakeout Some companies will have to merge or sell out. Small outfits are already withering. The key to survival will be marketing, not technology. by Bro Uttal India Bids for 88 Business Rajiv Gandhi is pushing policies that sound like Reaganomics. But don't hold your breath. by Louis Kraar The Editor's Desk 4 News/Trends 6 GE buys RCA, OPEC declares war, and more. Follow-Up 9 Toyota heads for Kentucky, Interleukin-2 on Wall Street, and more. Letters to Fortune 15 Keeping Up 95 by Daniel Seligman Personal Investing 101 The legal squeeze on Texaco. Willcox & Gibbs. FORTUNE Investment Challenge update. Canadian government bonds. Portfolio Talk: Fund manager Edwin Outen. by Michael McFadden Other Voices 113 How to trim Social Security. by Peter J. Ferrara On the Road 117 A Yankee's guide to Canada. by Brian Dumaine Books & Ideas 121 Life after Xerox. by Walter Guzzardi Jr. Index 123 Office Hours 125 Mum managers. by Walter Kiechel III