(FORTUNE Magazine) – MANAGING/COVER STORY AT&T'S $12 BILLION 100 CELLULAR DREAM Until it bought McCaw, AT&T was naked in its industry's fastest-growing / business. Now it must embrace its cellular baby without smothering it. by Andrew Kupfer 102 WHAT DOES MCCAW DO NOW?

BIG THINKERS 116 WHAT'S SO EFFECTIVE ABOUT STEPHEN COVEY? The author of The Seven Habits of Highly Effective People sells a message of moral renewal. Business is buying it. Is this a good thing? by Timothy K. Smith

POLITICS & POLICY 129 WHAT THE VOTE MEANS TO BUSINESS The new Congress will most assuredly be pro-business -- small business, that is. With a family-values twist. Some big companies may even miss the Democrats. by Ann Reilly Dowd

137 PASS GATT NOW A leading Republican economist calls on members of his party to put politics aside and approve this vital trade agreement. by Michael J. Boskin

INFORMATION TECHNOLOGY 141 WHY MICROSOFT CAN'T STOP LOTUS NOTES Lotus Notes is fast becoming the network software: It is changing how people view their computers -- and how companies work. Has Microsoft missed a window of opportunity? by David Kirkpatrick

159 AUTOS NEW IDEAS FROM EUROPE'S AUTOMAKERS Their quality and productivity still lag behind the U.S. and Japan, so European car companies are racing to catch up. Here's how. by Alex Taylor III

168 MANAGING THE CRISIS AT VOLVO

THE WORKPLACE 180 DON'T CALL ME SLACKER! FORTUNE leaps into the mosh pit to find America's top young talents. They're unorthodox, rebellious, and a challenge to manage. by Patricia Sellers

INNOVATION 198 1994 PRODUCTS OF THE YEAR From the Wonderbra to Mosaic to Baby Think It Over, FORTUNE's selection shows that new approaches -- new ideas -- can turn a humble commodity into a hot one. by Wilton Woods

DEPARTMENTS 6 EDITOR'S DESK 10 INDEX 16 NEWS/TRENDS Microsoft's new COO, daughters groomed to succeed, Japan's car crash in North America, weapons to wasps, and more.

27 FORTUNE FORECAST Stronger wage pressures will only add to inflation worries. by Vivian Brownstein

Economic Intelligence: Fed discipline, America's new appeal, and more.

DEPARTMENTS 45 PERSONAL INVESTING How investors can profit from the increase in interest rates. by Terence P. Pare

Also: Stocks gift-wrapped for Christmas, investors go online for talk and tips, and Portfolio Talk with Grace Pineda of Merrill Lynch.

94 LETTERS TO FORTUNE

243 COMPANIES TO WATCH Department 56 has fashioned a niche for itself as the leading supplier of giftware like tree ornaments and fanciful figurines. by John Labate

245 TECHNOLOGY TO WATCH Scientists are building traps to snare cholesterol lurking in your arteries, where it can kill by forming plaques. by Gene Bylinsky

246 BOOKS & IDEAS When the world's most horrifying microbe came to America, scientists caught it, fought it -- then weren't sure what happened. Not even thriller fiction can match The Hot Zone. by Colin Leinster

255 KEEPING UP How employers discriminate (or news nobody noticed), how to slash your wrists, how to get a pension, and other matters. by Daniel Seligman

261 HOW'S BUSINESS? TRW's Joe Gorman wants to blow up the public school system, rewrite the tax code, and allow weak companies to go under. by Marshall Loeb

267 ENTREPRENEURS Ken Tuchman's employees answer all kinds of consumer phone calls to help clients stay close to their customers. by Jacqueline M. Graves

COVER: AT&T Chairman Bob Allen was happy to pick up on Craig McCaw's offer. Photograph by Michael O'Neill.

Photo at left by Jeremy Wolff.

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.