(FORTUNE Magazine) – CORPORATE PERFORMANCE Cover Story

32 THE TOUGH COOKIE AT RJR NABISCO In two mergers, Ross Johnson went through the revolving door last and came out first. An enemy of the quiet life, he reorganizes businesses constantly, reduces staff by the thousands, and shuffles executives like playing cards. Johnson' s frenzy seeks a simplified management process with the single goal of pushing the company' s powerful brands: Oreo cookies, Ritz crackers, Life Savers, and Winston cigarettes, among other blockbusters. His philosophy should boost earnings per share 20% annually through 1990. by Bill Saporito

35 ROSS THE BOSS SPEAKS OUT

THE ECONOMY/ 18- Month Forecast

48 RECESSION? DON' T HOLD YOUR BREATH Expansions don' t just die of old age, and the spending excesses that usually set the stage for a downturn are nowhere in sight for the next year and a half. by Todd May Jr.

53 WHO STANDS TO GAIN MOST

MANAGING

58 PUSHING CORPORATE BOARDS TO BE BETTER Through lawsuits and proxy fights, newly aggressive shareholders are winning more corporate control and are forcing directors to shape up and do their jobs. The stockholder revolution has just begun. by Stratford P. Sherman

SELLING

70 THE 50 LEADING U. S. EXPORTERS Led by General Motors and Ford, American exporters had a bumper year in 1987 and helped put a noticeable dent in the trade deficit. Even more encouraging, exports continued to climb through the early months of 1988. by Edward C. Baig

WEALTH

74 GREAT FORTUNES LOST Think your money and luck will never run out? A multitude of missteps can send the family right back into the proverbial shirtsleeves -- and often have. by Jaclyn Fierman

84 HOW TO KEEP IT ALL IN THE FAMILY Try spreading the wealth before you die, or use a creative tax scheme called a GRIT.

MONEY & MARKETS

85 FRESH WARNINGS OF A BEAR MARKET Despite rising stock prices, a disturbing number of professional investors are ducking for cover these days. This is not a bull market struggling to regain its footing, they contend -- but a big bad bear that will drag stocks down further and maul investor wealth yet again. Though they differ on the market' s exact course in the months ahead, most of these pros agree that last October' s slide was just the beginning. by John J. Curran

POLITICS & POLICY

88 WHAT THE U. S. MUST DO IN SOUTH AFRICA America' s anti- apartheid policy has backfired, hurting the people it was intended to help. Disinvestment and trade sanctions, instead of ending the abomination of apartheid, are inspiring the Pretoria government to roll back reforms. Worse, they are moving the white electorate still further to the right, raising the specter of a more racist and reactionary government. But what should replace the U. S. policy? The debate is heating up in Washington. by Marshall Loeb

LOOKING AHEAD

92 TECHNOLOGY IN THE YEAR 2000 In the past dozen years the personal computer has transformed offices; videocassette recorders and compact discs have revolutionized home entertainment; and biotechnology has conferred genetically engineered vaccines and a host of other benefits on mankind. What further wonders lurking in the labs today will be commonplace when the next century begins? Exults one Silicon Valley executive: ''We' ll see a minimum of ten times as much progress in the next 12 years as we' ve seen in the past 12.'' by Gene Bylinsky

DEPARTMENTS

6 THE EDITOR' S DESK

8 INDEX

10 NEWS/ TRENDS Pension power, another farm misfortune, a U. S. steelmaker tries communism, drawing straws for houses, and more.

21 PERSONAL INVESTING The banking boom is on in the resurging heartland. Analysts see a surge in loan growth that should produce record earnings for Midwestern banks. by Andrew Evan Serwer

Also: drilling for dollars, U. S. auto stocks, and Portfolio Talk with T. Rowe Price money manager George Roche.

46 COMPANIES TO WATCH

99 FORTUNE PEOPLE John Kluge' s new LBO troupe, Trump and Tyson tout Pepsi, a sky- diving money manager bails out, Kaiser Steel' s new chief goes after cash from trash, and more. by Terence P. Pare

100 ON THE RISE

101 BOOKS & IDEAS Tom Clancy -- the CEOs' favorite thriller writer -- has produced another perfect beach book, combining an insider feel with deep thinking about Star Wars. by Andrew Ferguson

105 LETTERS TO FORTUNE

111 KEEPING UP The case of the profane lady, figuring why Johnny can' t add, how Congressmen' s friends are different, and more. by Daniel Seligman