FORTUNE Magazine contents page AUGUST 23, 1993 VOL. 128, NO. 4
By

(FORTUNE Magazine) – MANAGING/COVER STORY 40 REENGINEERING: THE HOT NEW MANAGING TOOL The radical redesign of business processes is powerful -- and all the fad. Done well, it delivers extraordinary gains in speed, productivity, and profitability. But it's not for everyone, and sometimes it fails to deliver. Here's a look at what works and what doesn't, the most common mistakes that companies make, and what executives can do to help the process succeed. by Thomas A. Stewart

52 SELLING BRANDS: IT'S THRIVE OR DIE Private-label makers and their retailer conspirators are putting tremendous pressure on big brands. Famous names are fighting back. This battle is far from over. by Patricia Sellers

POLITICS & POLICY 58 CLINTON SPEAKS ON THE ECONOMY In an exclusive FORTUNE interview, the President talks about where America's new jobs will come from, why Ross Perot is wrong about NAFTA -- and the case for adopting a value-added tax.

AUTOS 64 VW'S ROCKY ROAD AHEAD Here's how the CEO of Europe's No. 1 automaker aims to overcome terrible productivity, sagging sales, skimpy profits, and the scandal that right-hand- man Ignacio Lopez brought with him from General Motors. by Alex Taylor III

HEALTH CARE 72 WHY WE NEED MORE DOCTORS Granting health benefits to 37 million uninsured Americans will inflate demand for doctors -- who are already stretched to the limit. The result: soaring prices and long waits. by Shawn Tully

CORPORATE PERFORMANCE 79 A LONG-TERM BET PAYS OFF AT LAST Cummins, the top maker of diesel engines for tractor trailers, is now delivering profits from a route it mapped out years ago. by Edmund Faltermayer

CORPORATE PERFORMANCE 80 HOW TO WIN IN A LAND OF LOSERS While other property and casualty insurers have been squeezed by recent natural disasters, Chubb has been prospering with plain old business smarts -- like catering to the affluent. by Mark D. Fefer

81 COMPANIES TO WATCH RPM's protective coatings and sealants have safeguarded its profits as well as such landmarks as the Statue of Liberty. by John Labate

THE WORKPLACE 84 SEXUAL HARASSMENT: WHAT TO DO Complaints are mounting, confusion is rampant, and almost everybody's a little nervous. But many companies are trying hard to stamp out this form of abuse. by Anne B. Fisher

TECHNOLOGY 90 HUGHES GAMBLES ON HIGH-TECH TV Two satellites should start beaming 150 channels of video to owners of special 18-inch, $700 dishes next spring. But how big is the market for an alternative to cable? by Andrew Kupfer

DEPARTMENTS 4 EDITOR'S DESK 8 INDEX 12 NEWS/TRENDS How long airlines will stay aloft, the comeback car, Big Steel loses, the phonecard boom, and more.

21 FORTUNE FORECAST Profits are taking a breather, but they will bounce back. by Vivian Brownstein

25 PERSONAL INVESTING The cockroach theory: how unexpected earnings can help you find great stocks. by Susan E. Kuhn

36 LETTERS

101 PRODUCTS TO WATCH

109 BOOKS & IDEAS Is the Wall Street Journal corrupt? by John Huey

111 KEEPING UP by Daniel Seligman

116 ENTREPRENEURS Cambridge Aeroflo's sales crashed along with computers. Here's how it came back. by Charles Burck

THE GLOBAL SERVICE 500 160 MALE! AU! AVAR! DET SMARTER! (OUCH!) Total 1992 profits fell by 17%: That's why many of the world's largest service companies cried out in pain. But some corporations had great news.

163 THE 500 RANKED BY SALES

181 THE 500 RANKED BY PERFORMANCE

186 THE 500 RANKED WITHIN COUNTRIES

195 ALPHABETICAL INDEX

ABOVE: These maintenance workers are part of a reengineering effort at the Union Carbide chemical plant in Taft, Louisiana. Photo by John Chiasson (Gamma/Liaison).

COVER: Blueprint and instruments, photographed by Elizabeth Watt.

FORTUNE (ISSN 0015-8259). Published biweekly, with three issues in October, by Time Inc. Principal office: Time & Life Building, Rockefeller Center, New York, NY 10020-1393. Reginald K. Brack Jr., Chairman; Don Logan, President; Joseph A. Ripp, Treasurer; Harry M. Johnston, Secretary. Subscriptions: U.S., possessions: one year (27 issues) $52.95; Canada: one year (27 issues) $53.73. Second-class postage paid at New York, NY, and at additional mailing offices. Authorized as second-class mail by the Post Office Dept., Ottawa, Canada, and for payment of postage in cash. Member, Audit Bureau of Circulations. POSTMASTER: Send address changes to FORTUNE, P.O. Box 30604, Tampa, Fla. 33630-0604. Customer inquiries: FORTUNE, P.O. Box 60001, Tampa, Fla. 33660-0001. Phone: 1-800-621-8000. ) (c) 1993. Time Inc. All rights reserved. FORTUNE is a registered mark of Time Inc. % For subscription queries, call Customer Service at 1-800-621-8000. Time Inc. GST R122781974.