(FORTUNE Magazine) – SELLING/Cover Story 38 GETTING CUSTOMERS TO LOVE YOU It takes more work than most managers think, but the payoff comes in building a loyal cadre of repeat buyers. Holding on to your customers costs one-fifth as much as acquiring new ones. You'll also know quickly whether the market wants your product. by Patricia Sellers

44 HOW LANDS' END COURTS UNSEEN CUSTOMERS

CORPORATE PERFORMANCE 52 THE TASKS FACING GENERAL MOTORS Costs are down, profits and quality are up. Now GM needs to win back American buyers, make the Saturn gamble pay off, and fine-tune Roger Smith's reorganization. by Alex Taylor III

61 GRAND MET'S RECIPE FOR PILLSBURY These feisty Brits aim to put some yeast back in the Doughboy by cutting overhead, reheating brands, and rolling out new products. Once they digest their biggest acquisition, they'll be back for more. by Richard I. Kirkland Jr.

68 THE PUBLICAN AT BURGER KING

73 COMPANIES TO WATCH CPI prospers taking photographs of kids in studios located in Sears stores. Plus: Martinair Holland, American Museum of Historical Documents, and Compumat. by Julianne Slovak

EXECUTIVE LIFE 77 AT LAST, SOFTWARE CEOs CAN USE Executives are finally getting fast, clear information about what's happening in the bowels of their business. The new systems can change the way top managers work. by Jeremy Main

CEO POLL 87 HOLDING FIRM ON AFFIRMATIVE ACTION Hiring and keeping qualified minority workers hasn't been easy, say America's top executives. Despite a recent Supreme Court reversal, most want to keep on trying. by Alan Farnham

MANAGING 91 LIFE AFTER DEBT: HOW LBOs DO IT All managers of public companies can benefit from studying the practices of successful leveraged buyouts. Here are six ways to improve your business. by Brett Duval Fromson

98 WHAT LBOs REALLY DO TO R&D

THE ECONOMY 102 TEXAS FACES UP TO A TOUGHER FUTURE Betting on the next gusher won't cut it any more for this state in turmoil. Now Texans must beef up schools, clean up taxes, and reform their court system. by John Paul Newport Jr.

115 THE NEW LOOK OF CAPITAL SPENDING American companies are improving their investment decisionmaking and propelling the fastest rise in manufacturing productivity since World War II. by Kate Ballen

COMPETITION 124 NOW JAPAN IS PLUNGING INTO OIL No longer content merely to import crude, the Japanese are starting to explore, produce, and buy large reserves. by Carla Rapoport

LAURELS 130 THE U.S. BUSINESS HALL OF FAME This year's achievers include Boeing's T. A. Wilson, Intel's Robert N. Noyce, Emerson Electric's Wallace R. Persons, and McKinsey & Co.'s Marvin Bower. by Walter Guzzardi

DEPARTMENTS 4 EDITOR'S DESK

6 INDEX

8 NEWS/TRENDS Bush's budget ballet, saving the thrifts, stars of the lecture circuit, those growing dividends, who will pay for the pollution cleanup, the return of Malcolm Bricklin, and more.

21 FORTUNE FORECAST There's double trouble ahead from inflation and the budget. by Vivian Brownstein

25 PERSONAL INVESTING Bond funds that play the whole fixed-income field for you. by Joshua Mendes

Also: Blossoming profits at a Tandy spinoff, warehouse clubs on a tear, and Portfolio Talk with newsletter publisher Gerald Perritt.

137 FORTUNE PEOPLE Fuqua's personal school of business, Trump's second thoughts, and more. by Mark Alpert

140 ON THE RISE

143 BOOKS & IDEAS Board Games shows how sometimes-bizarre court rulings practically ensure that every takeover attempt ends up in litigation -- costing shareholders plenty. by Walter Olson

146 LETTERS TO FORTUNE

151 KEEPING UP Your correspondent discovers the daisy chain phenomenon, asks who is really responsible for the S&L crisis, and more. by Daniel Seligman