FORTUNE Magazine contents page AUGUST 29, 1988 VOL. 118, NO. 5
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(FORTUNE Magazine) – PROFILE/ COVER STORY IACOCCA 38 Here' s what he didn' t say in his two best- sellers. The bare- knuckle Chrysler chief executive talks with characteristic candor about some good times shared with Henry Ford II, offers an ounce of sympathy to GM' s hapless Roger Smith, and reflects on his 42 years in automaking and the global future of business in the 21st century.

THE ECONOMY 44 WHO' S WINNING THE POCKETBOOK ISSUE? Republicans rejoice because the numbers show the U. S. economy is muscular. Yet many voters see it as only a 98- pound weakling -- and that helps the Democrats. by Louis S. Richman

MANAGING 48 WHERE THE 1988 MBAs ARE GOING Can you believe it? Some of them are rejecting Wall Street for the less certain but more challenging life of the entrepreneur. Others are hoping to land jobs in manufacturing so they can create something real. In short, the men and women of this graduating class want something more than money, money, money. by Peter Nulty

CORPORATE PERFORMANCE 54 HOW KING KELLOGG BEAT THE BLAHS Not so long ago, the onetime champ of cereals turned wimpish. Now the company is back and roaring, a giant again. It has creamed competitors and brought dollops of youthful vigor to a business everybody else thought was mature. As it turns out, millions of Americans still love to eat breakfast. by Patricia Sellers

TECHNOLOGY 66 HOW SAFE ARE VIDEO TERMINALS? Given the growing concern, it' s amazing how little we all know about the potential dangers, particularly electromagnetic emissions. Companies better start learning. A place to begin: Support the research effort. by David Kirkpatrick

THE WORLD 72 DOING BUSINESS ON MEXICO' S VOLCANO An eruption of popular discontent gave Mexico' s establishment the scare of its life -- just when years of austerity were starting to pay off. Advice to President- elect Carlos Salinas: Hang tough, promote tourism and exports. One day, oil will come back. by Brian O' Reilly

COMPETITION 78 LESSONS FROM HOLLYWOOD HIT MEN You think your business faces an uncertain future ! Try playing the role of a movie mogul. Even in this super box- office summer, many films lose money. Studio chiefs bet mammoth sums on always- tough decisions. Here' s how the top guns hit the bull' s- eye. by Christopher Knowlton

82 - WHY U. S. FLICKS ARE FOREIGNERS' FAVES

POLITICS & POLICY 84 TRIM THAT SOCIAL SECURITY SURPLUS If things don' t change, $12 trillion will be in the agency' s kitty by the year 2030 -- and it will all be gone by 2050. Let' s use some of the money to cut the budget deficit and tell the baby- boomers to expect less at retirement. by Lee Smith

ENTREPRENEURS 91 PILE 'EM HIGH, SELL 'EM CHEAP There in a nutshell is the credo of Alan Sugar, Britain' s up- from- nowhere king of consumer electronics and the most successful new entrepreneur in Europe. by Richard I. Kirkland Jr.

DEPARTMENTS

4 EDITOR' S DESK

6 INDEX

10 NEWS/ TRENDS Bush gets a new top dog, racing pollution to Antarctica, child care makes business sense, profits in drugs and drought, and more.

19 FORTUNE FORECAST Growth is slowing: good news for the U. S., bad news for the GOP. by Maureen F. Allyn

23 PERSONAL INVESTING Bonds are looking good right now, and Treasuries look even better. by Andrew Evan Serwer

Also: Mutual funds for the chicken- livered, semiconductor stocks, and Portfolio Talk with United Income Fund' s Russell Thompson.

64 COMPANIES TO WATCH

93 FORTUNE PEOPLE Curt Carlson' s $1 million birthday fling, GM' s biter cuts loose, Sam the Gravedancer waltzes on, and more. by Terence P. Pare

94 ON THE RISE

95 OTHER VOICES The U. S. trade and budget deficits are good for us -- and for everybody else. by James Griffin

97 OFFICE HOURS How to lead a meeting. by Walter Kiechel III

100 LETTERS TO FORTUNE

103 KEEPING UP by Daniel Seligman