(FORTUNE Magazine) – MANAGING/COVER STORY 44 BREAKING UP IBM Facing horrendous challenges, John Akers is taking Big Blue apart and may even sell stock in the corporate pieces. His reforms rate a B- so far, but the job will need an A+ effort. by David Kirkpatrick

49 THE BIG AND THE BLOATED: IT'S TOUGH BEING NO. 1 GM's top brass are in a muddle identical to that of IBM's managers: How do you reinvigorate an aging organization?

52 WHAT IF THEY HAD BROKEN UP IBM LIKE AT&T?

THE ECONOMY 61 THE WORLD ECONOMY IN CHARTS The world's fastest-growing economies are no longer confined to the blistering Pacific Rim; now they are everywhere, from Latin America to central Asia. For a snapshot of how both industrialized and developing nations have performed in the past three years -- and where they are likely to head in 1992 and 1993 -- check out our annual display of graphs and tables. by John Labate

AUTOS 82 CHRYSLER'S NEXT BOSS SPEAKS In an interview with FORTUNE, the auto giant's new, down-to-earth vice chairman, Robert Eaton, lays out his vision for the company and his views on how it will fare against the Japanese competition.

EXECUTIVE LIFE 84 THE NEW LOW-RISK ENTREPRENEURS Starting a company is still a long shot, but a growing band of corporate dropouts and up-to-date dreamers are using business skills and more realistic goals to even the odds. by Kenneth Labich

CORPORATE PERFORMANCE 94 HOW TO WIN WITH A VALUE STRATEGY American Brands is smoking since it spotted the trend to cut-price brands. by Faye Rice

95 NO PRODUCT IS TOO DULL TO SHINE Church & Dwight's fresh uses for its baking soda keep profits fizzing. by Peter Nulty

96 WHY TO BUY BIG IN BAD TIMES By acquiring mines when the industry slid, Asarco's CEO hit pay dirt. by Ricardo Sookdeo

CORPORATE PERFORMANCE 97 COMPANIES TO WATCH Carrot-and-stick remuneration propels Technology Solutions' profits. by Richard S. Teitelbaum

SELLING 100 FINDING NEW WAYS TO SELL MORE Smart companies are listening better, broadening their product lines, exploring new markets, and generally trying to make themselves invaluable to their customers. by Susan Caminiti

INNOVATION 107 PRODUCTS TO WATCH Bell Atlantic's floating phone, doggie delicacies, a psychedelic TV screen, and more. by Alison Sprout

THE ENVIRONMENT 110 THE NEW SOVIET THREAT: POLLUTION After 74 years of Communist mismanagement, the former Soviet Union is an environmental menace to the world. The cleanup will cost billions -- and guess who pays. by Paul Hofheinz

DEPARTMENTS 4 EDITOR'S DESK 8 INDEX 12 NEWS/TRENDS The S&L bailout stalls, Saturn in orbit, lyrics as an economic seer, animals do their bit, and more.

25 FORTUNE FORECAST Our region-by-region projections for the U.S. economy. by Joseph Spiers

29 PERSONAL INVESTING To find market leaders as the recovery takes hold, make your way stock by stock. by Terence P. Pare

40 LETTERS TO FORTUNE

162 BOOKS & IDEAS

167 FORTUNE PEOPLE The Trump-Bork connection, and Lee Iacocca acts like Paul Newman. by Laurie Kretchmar

169 KEEPING UP by Daniel Seligman

THE GLOBAL 500 176 IT WAS A BAD YEAR EVERYWHERE FORTUNE's unique list of the world's 500 largest industrial companies shows that the pain was global in 1991. by Wilton Woods

179 THE 500 RANKED BY SALES The largest industrial companies.

192 THE 500 RANKED BY PERFORMANCE

196 THE 500 RANKED WITHIN INDUSTRIES How companies stack up against competitors.

218 THE 500 RANKED WITHIN COUNTRIES Where each company rates nationally, plus the headquarters city and phone number.

230 ALPHABETICAL INDEX TO THE GLOBAL 500

ABOVE: Akers's reforms are far-reaching, but is he pressing his message hard enough? Photo by Gregory Heisler.

COVER: Andy Freeberg took this photo of the IBM chairman.