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J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson

By: David Robinson

The case study is set in 2012 and 2013. J.C. Penney is a venerable American institution, one of the last surviving department store chains. But it has suffered from "profitless prosperity"--good "top…

• Length: 14 page(s)
• Publication Date: Jun 30, 2014
• Discipline: Marketing
• Product #: B5808-PDF-ENG

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The case study is set in 2012 and 2013. J.C. Penney is a venerable American institution, one of the last surviving department store chains. But it has suffered from "profitless prosperity"--good "top line" (revenue) but great difficulty in bringing much to the "bottom line" (net income). Additionally, competition from specialty retailers has led Penney's to abandon certain lines of business (such as automotive repair) and face intense competition in other categories (wear-to-work clothing and household goods). The case study discusses the hiring of Ron Johnson from Apple in 2011 and the aftermath of Johnson's new strategy of a "curated collection of 100 brands" and change in pricing strategy from frequent sales to everyday low pricing. The case study also shows the aftermath of Johnson's strategy which was not positive.

Learning Objectives

The JC Penney case allows students to explore the challenges of a turnaround effort rife with challenges. Students will also explore the ideas of customer segments and customer loyalty, as well as to discuss general strategy related to a new CEO's efforts to change the strategy of JC Penney.

Jun 30, 2014 (Revised: Jun 23, 2014)

Discipline:

Geographies:

Industries:

Retail and consumer goods, Retail trade

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Ron Johnson: A Career in Retail, Video

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Ron johnson: a career in retail, video description.

This is a video supplement, to be used when teaching the Ron Johnson: A Career in Retail case (516016).

Case Description Ron Johnson: A Career in Retail, Video

Strategic managment tools used in case study analysis of ron johnson: a career in retail, video, step 1. problem identification in ron johnson: a career in retail, video case study, step 2. external environment analysis - pestel / pest / step analysis of ron johnson: a career in retail, video case study, step 3. industry specific / porter five forces analysis of ron johnson: a career in retail, video case study, step 4. evaluating alternatives / swot analysis of ron johnson: a career in retail, video case study, step 5. porter value chain analysis / vrio / vrin analysis ron johnson: a career in retail, video case study, step 6. recommendations ron johnson: a career in retail, video case study, step 7. basis of recommendations for ron johnson: a career in retail, video case study, quality & on time delivery.

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Case Analysis of Ron Johnson: A Career in Retail, Video

Ron Johnson: A Career in Retail, Video is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Ron Johnson: A Career in Retail, Video is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Ron Johnson: A Career in Retail, Video case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Ron Johnson: A Career in Retail, Video will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Ron Johnson: A Career in Retail, Video case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Ron Johnson: A Career in Retail, Video, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Ron Johnson: A Career in Retail, Video case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Ron Johnson: A Career in Retail, Video case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Ron Johnson: A Career in Retail, Video

Step 1 – Problem Identification of Ron Johnson: A Career in Retail, Video - Harvard Business School Case Study

The first step to solve HBR Ron Johnson: A Career in Retail, Video case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ron Johnson is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ron Johnson, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Ron Johnson: A Career in Retail, Video. The external environment analysis of Ron Johnson: A Career in Retail, Video will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Ron Johnson: A Career in Retail, Video case study. PESTEL analysis of " Ron Johnson: A Career in Retail, Video" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Ron Johnson: A Career in Retail, Video macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Ron Johnson: A Career in Retail, Video

To do comprehensive PESTEL analysis of case study – Ron Johnson: A Career in Retail, Video , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Ron Johnson: A Career in Retail, Video

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Ron Johnson: A Career in Retail, Video ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ron Johnson is operating, firms are required to store customer data within the premises of the country. Ron Johnson needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Ron Johnson: A Career in Retail, Video has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ron Johnson in case study Ron Johnson: A Career in Retail, Video" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ron Johnson in case study “ Ron Johnson: A Career in Retail, Video ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ron Johnson in case study “ Ron Johnson: A Career in Retail, Video ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Ron Johnson: A Career in Retail, Video ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ron Johnson can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Ron Johnson: A Career in Retail, Video case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ron Johnson needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Ron Johnson: A Career in Retail, Video

Social factors that impact ron johnson: a career in retail, video, technological factors that impact ron johnson: a career in retail, video, environmental factors that impact ron johnson: a career in retail, video, legal factors that impact ron johnson: a career in retail, video, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: ron johnson: a career in retail, video case study solution.

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FlowChat Case Study

Executive Summary:

Does running an agency or coaching business leave you feeling like you're chasing your tail?

You're not alone. Just ask Ron Medlin.

Ron is the quintessential entrepreneur, the kind who built his agency brick by brick, client by client. His hard work was undeniable, his commitment unshakeable. Yet, the reward for his perseverance was a seemingly unbreakable revenue ceiling of $8,000 per month.

Like clockwork, every month, the same number stared back at him from the books. He found himself trapped…

Trapped in the unending cycle of trading time for money. Without a sustainable business model, Ron's agency was stagnant. Predictable cash flow, the cornerstone of any thriving business, was a dream that seemed increasingly elusive.

Nights turned into restless marathons of frustration, the ticking clock a constant reminder of his struggle. The mental treadmill was grueling – Ron kept asking himself:

🤔 How do I break the cycle? How do I create a consistent income without selling more hours of my life?

Despite the success he had achieved, Ron was stuck, yearning for a way to create a reliable cash flow that wouldn't consume every waking hour.

As a result, Ron was constantly on the clock, trading hours for dollars, with no foreseeable end in sight.

His hard work seemed to perpetually plateau, and the goal of achieving scalable growth - the kind that doesn't require you to sacrifice every waking moment - felt more like a pipe dream than a feasible reality.

He knew there had to be a better way, a path to predictability and peace of mind. He just hadn't found it yet.

Then FlowChat entered his world and became a game-changer…

Enter FlowChat

Ron was able to quickly turn the tables on his business woes, transforming his agency into a powerhouse by white-labeling FlowChat.

The "stuck at 8k/month" narrative soon faded as he witnessed a whopping 375% increase in his revenue, consistently hitting the $30,000+ mark every month.

The best part? He started working less.

His newfound freedom meant more time for his family and the luxury to whisk off on exotic vacations (He recently got back from Antarctica!).

He sought time for personal joy. He aspired to a better lifestyle while still scaling his business.

But, how did he do it?

"FlowChat has increased my revenue by more than 375% in the past 7 months!"

Because of the tech, I’ve seen a MASSIVE boost in the results my clients are able to get for themselves. It’s was super easy to get things up and running (1st week) and Sean & Chris and the FlowChat team provided immense support in getting my first software clients!

Who Is Ron? What Does He Do?

Name: Ron Medlin

Company Name: GroupFuel

Size of Team before FlowChat: 1

Size of Team after FlowChat: 4

Industries Served: Coach, Consultant, Agency Owner or Course Creator

Super Powers: Crafting Irresistible Offers & Installing Automated Client Acquisition Systems

Company Revenue Before FlowChat: $96,000 / Year

Projected Company Revenue After FlowChat: $495,000 / Year

What His Clients Say About Him:

Now Your Business Can Get All The Leads You'll Ever Need. .

If you haven't had the chance to connect on a call with our team, then book a call by clicking here., testimonials.

The Problem

Ron was constantly on the clock, trading hours for dollars, with no foreseeable end in sight. His hard work seemed to perpetually plateau, and the goal of achieving scalable growth - the kind that doesn't require you to sacrifice every waking moment - felt more like a pipe dream than a feasible reality. He was stuck at $8,000 / month in business revenue.

His main method of acquisition? The 2-step post strategy…

Picture Ron's typical day before FlowChat entered the scene: he would craft a compelling post designed to draw interest, affectionately termed a "hand-raiser" post, and blast it out to Facebook Groups and his personal social media profiles. Then, he would wait, anticipating the interactions that would hopefully pour in.

Each engagement was an opportunity, a potential client. Manually, one by one, he would reach out to these engaged individuals via direct messages. He'd invite them to his Facebook group, nurture these relationships, book calls, and eventually close deals. It was a relentless, manual process that felt more like an uphill battle than a streamlined funnel.

Despite the thrill of potential new business, Ron soon realized he was hemorrhaging prospects. It was like trying to catch water with a sieve - there were simply too many conversations to manage effectively. This inefficient system was costing him dearly, to the tune of hundreds of thousands in lost revenue. Prospects were slipping through the cracks faster than he could catch them.

But the financial toll was just the tip of the iceberg. This relentless process left Ron feeling frustrated and disheartened. He was spinning his wheels, trading precious time for what seemed like dwindling returns. He couldn’t help but feel irritated that he hadn't figured out a more efficient method to manage this deluge of potential business, especially when he had a wanderlust itch begging to be scratched.

The Solution

Ron's salvation came wrapped in a chat with the FlowChat team . The conversation was a lightbulb moment for him, as he realized how white labeling the FlowChat software and integrating it with his services could be the game-changer he needed.

How did this transformation happen? Ron leveraged his existing Facebook Group strategy and supercharged it with FlowChat's innovative pipelines.

The aim? Swiftly converting cold prospects into satisfied clients.

The simple yet powerful '1-click' import feature of FlowChat was a revelation for Ron. No longer did he have to manually scour for engagers; a single click and voila, all engagers were within his grasp. This feature alone saved him around 10 precious hours each week.

But FlowChat had more to offer.

The Post Import feature allowed Ron to not just track, but truly comprehend the marketplace performance of his posts. With an automatic report set up, he could see at a glance the engagement on each of his 2-step posts. One click would open the post, another would import all new engagers.

Simple, efficient, and effective.

Taking it a step further, Ron could set up KPIs (key performance indicators) to visualize the performance of his FlowChat pipelines. This granular insight gave him the power to tweak his flows in real-time, adapting swiftly to the needs of the market.

As of now, no other software offers this level of hands-on, organic business growth monitoring.

The FlowChat team helped Ron understand two crucial points:

• How to use technology to refine his existing practices for smoother, more efficient operations.
• How to effectively market his white-labeled version - the GroupFuel Chat system - to his audience, enticing them to invest.

These insights sparked a massive explosion in Ron's business.

He saw a phenomenal growth of over 375% in monthly revenue, and his clients enjoyed a similar surge in their own businesses.

Now, Ron has orderly pipelines that keep everything manageable. He can effortlessly import participants from his LinkedIn events and continue to dominate with his 2-step strategy.

Thanks to this game-changing system, Ron has reclaimed more than 15 hours per week and banished the chronic headaches caused by the inefficiencies of his old methods. It's safe to say that FlowChat has revolutionized Ron's agency.

The Results

Method of Acquisition: Create a Post > Import Post & Engagers into FlowChat > DMs > Call > Sale.

This method never changed, it’s now been optimized. The results are a significant boost in revenue for Ron (and his clients who invest in his White Label solution) AND waaay more time off for Ron to pursue his true passions and what he built his business for in the beginning.

Transformation: 375% increase in personal revenue. 100% boost in client results who use his white labeled system. Created more than $25,000 / month of monthly recurring revenue for himself. Eliminated all the frustration.

So what’s next for Ron? Hyper growth for his own business.

A stronger brand offering for his clients (because of the white labeled FlowChat solution) …and more exotic vacations!

Ron is an esteemed member of FlowChat and part of our 6-figure club. We are continuing to work together to get him into our 7-figure club in the next 1-2 years.

So proud of Ron and looking forward to a long future as partners on his journey.

Perhaps you can connect with Ron’s story. Perhaps you are in a similar space with your business. Perhaps you are just doing research to see if FlowChat is really for you.

Whatever the case, know that we are here... ...and ready to support you.

As you can see, Ron is a mega success story. We have dozens more.

And while you've read through this case study I have to ask...

What's next for you?

I would say you have 2 options:

You can do nothing.

However, you're not gonna forget about this case story, and it'll probably keep you up at night.

Start your winning journey as our newest FlowChat Connector.

If you already know the software is for you and you want to get started, grab your membership right now ., connect with ron:.

We believe in Ron. We believe in what he does.

“If you live for the weekends and vacations, your sh*t is broken.”

Ron’s fav quote.

If you’re wanting to learn more about his services, Here’s the best way to reach him…

GroupFuel Website

gohighticketnow.com

[email protected] | tel: (404) 317-3925.

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A 2Gen Approach in Wisconsin: A State Case Study for Systems Leaders & Policymakers

Wisconsin’s 2Gen approach to date has brought its most significant systemic barriers into clear sight. The story also illuminates the systems change strategies that have emerged as the most significant and essential to moving this work to the next level. Throughout this case study, state leaders and partners reflect on indicators of progress and on strategies for the long game of transformational systems change to make it possible for 2Gen approaches to take hold and spread across the state.

By looking to the places where there is an enduring commitment to this transformational work, other states and communities can learn from and build on these efforts, catalyzing change and accelerating momentum. Our hope is that readers will benefit from learning about and immersing themselves in real-world stories of how this work unfolds in diverse places. This kind of exploration enables readers to understand the importance and potential impact of 2Gen approaches and of the associated systems change work involved in creating the conditions for these efforts to succeed and proliferate.

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Study Suggests Genetics as a Cause, Not Just a Risk, for Some Alzheimer’s

People with two copies of the gene variant APOE4 are almost certain to get Alzheimer’s, say researchers, who proposed a framework under which such patients could be diagnosed years before symptoms.

By Pam Belluck

Scientists are proposing a new way of understanding the genetics of Alzheimer’s that would mean that up to a fifth of patients would be considered to have a genetically caused form of the disease.

Currently, the vast majority of Alzheimer’s cases do not have a clearly identified cause. The new designation, proposed in a study published Monday, could broaden the scope of efforts to develop treatments, including gene therapy, and affect the design of clinical trials.

It could also mean that hundreds of thousands of people in the United States alone could, if they chose, receive a diagnosis of Alzheimer’s before developing any symptoms of cognitive decline, although there currently are no treatments for people at that stage.

The new classification would make this type of Alzheimer’s one of the most common genetic disorders in the world, medical experts said.

“This reconceptualization that we’re proposing affects not a small minority of people,” said Dr. Juan Fortea, an author of the study and the director of the Sant Pau Memory Unit in Barcelona, Spain. “Sometimes we say that we don’t know the cause of Alzheimer’s disease,” but, he said, this would mean that about 15 to 20 percent of cases “can be tracked back to a cause, and the cause is in the genes.”

The idea involves a gene variant called APOE4. Scientists have long known that inheriting one copy of the variant increases the risk of developing Alzheimer’s, and that people with two copies, inherited from each parent, have vastly increased risk.

The new study , published in the journal Nature Medicine, analyzed data from over 500 people with two copies of APOE4, a significantly larger pool than in previous studies. The researchers found that almost all of those patients developed the biological pathology of Alzheimer’s, and the authors say that two copies of APOE4 should now be considered a cause of Alzheimer’s — not simply a risk factor.

The patients also developed Alzheimer’s pathology relatively young, the study found. By age 55, over 95 percent had biological markers associated with the disease. By 65, almost all had abnormal levels of a protein called amyloid that forms plaques in the brain, a hallmark of Alzheimer’s. And many started developing symptoms of cognitive decline at age 65, younger than most people without the APOE4 variant.

“The critical thing is that these individuals are often symptomatic 10 years earlier than other forms of Alzheimer’s disease,” said Dr. Reisa Sperling, a neurologist at Mass General Brigham in Boston and an author of the study.

She added, “By the time they are picked up and clinically diagnosed, because they’re often younger, they have more pathology.”

People with two copies, known as APOE4 homozygotes, make up 2 to 3 percent of the general population, but are an estimated 15 to 20 percent of people with Alzheimer’s dementia, experts said. People with one copy make up about 15 to 25 percent of the general population, and about 50 percent of Alzheimer’s dementia patients.

The most common variant is called APOE3, which seems to have a neutral effect on Alzheimer’s risk. About 75 percent of the general population has one copy of APOE3, and more than half of the general population has two copies.

Alzheimer’s experts not involved in the study said classifying the two-copy condition as genetically determined Alzheimer’s could have significant implications, including encouraging drug development beyond the field’s recent major focus on treatments that target and reduce amyloid.

Dr. Samuel Gandy, an Alzheimer’s researcher at Mount Sinai in New York, who was not involved in the study, said that patients with two copies of APOE4 faced much higher safety risks from anti-amyloid drugs.

When the Food and Drug Administration approved the anti-amyloid drug Leqembi last year, it required a black-box warning on the label saying that the medication can cause “serious and life-threatening events” such as swelling and bleeding in the brain, especially for people with two copies of APOE4. Some treatment centers decided not to offer Leqembi, an intravenous infusion, to such patients.

Dr. Gandy and other experts said that classifying these patients as having a distinct genetic form of Alzheimer’s would galvanize interest in developing drugs that are safe and effective for them and add urgency to current efforts to prevent cognitive decline in people who do not yet have symptoms.

“Rather than say we have nothing for you, let’s look for a trial,” Dr. Gandy said, adding that such patients should be included in trials at younger ages, given how early their pathology starts.

Besides trying to develop drugs, some researchers are exploring gene editing to transform APOE4 into a variant called APOE2, which appears to protect against Alzheimer’s. Another gene-therapy approach being studied involves injecting APOE2 into patients’ brains.

The new study had some limitations, including a lack of diversity that might make the findings less generalizable. Most patients in the study had European ancestry. While two copies of APOE4 also greatly increase Alzheimer’s risk in other ethnicities, the risk levels differ, said Dr. Michael Greicius, a neurologist at Stanford University School of Medicine who was not involved in the research.

“One important argument against their interpretation is that the risk of Alzheimer’s disease in APOE4 homozygotes varies substantially across different genetic ancestries,” said Dr. Greicius, who cowrote a study that found that white people with two copies of APOE4 had 13 times the risk of white people with two copies of APOE3, while Black people with two copies of APOE4 had 6.5 times the risk of Black people with two copies of APOE3.

“This has critical implications when counseling patients about their ancestry-informed genetic risk for Alzheimer’s disease,” he said, “and it also speaks to some yet-to-be-discovered genetics and biology that presumably drive this massive difference in risk.”

Under the current genetic understanding of Alzheimer’s, less than 2 percent of cases are considered genetically caused. Some of those patients inherited a mutation in one of three genes and can develop symptoms as early as their 30s or 40s. Others are people with Down syndrome, who have three copies of a chromosome containing a protein that often leads to what is called Down syndrome-associated Alzheimer’s disease .

Dr. Sperling said the genetic alterations in those cases are believed to fuel buildup of amyloid, while APOE4 is believed to interfere with clearing amyloid buildup.

Under the researchers’ proposal, having one copy of APOE4 would continue to be considered a risk factor, not enough to cause Alzheimer’s, Dr. Fortea said. It is unusual for diseases to follow that genetic pattern, called “semidominance,” with two copies of a variant causing the disease, but one copy only increasing risk, experts said.

The new recommendation will prompt questions about whether people should get tested to determine if they have the APOE4 variant.

Dr. Greicius said that until there were treatments for people with two copies of APOE4 or trials of therapies to prevent them from developing dementia, “My recommendation is if you don’t have symptoms, you should definitely not figure out your APOE status.”

He added, “It will only cause grief at this point.”

Finding ways to help these patients cannot come soon enough, Dr. Sperling said, adding, “These individuals are desperate, they’ve seen it in both of their parents often and really need therapies.”

Pam Belluck is a health and science reporter, covering a range of subjects, including reproductive health, long Covid, brain science, neurological disorders, mental health and genetics. More about Pam Belluck

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Governor Newsom Unveils Revised State Budget, Prioritizing Balanced Solutions for a Leaner, More Efficient Government

Published: May 10, 2024

The Budget Proposal — Covering Two Years — Cuts Spending, Makes Government Leaner, and Preserves Core Services Without New Taxes on Hardworking Californians

Watch Governor Newsom’s May Revise presentation here

WHAT YOU NEED TO KNOW:  The Governor’s revised budget proposal closes both this year’s remaining $27.6 billion budget shortfall and next year’s projected $28.4 billion deficit while preserving many key services that Californians rely on — including education, housing, health care, and food assistance.

SACRAMENTO – Governor Gavin Newsom today released a May Revision proposal for the 2024-25 fiscal year that ensures the budget is balanced over the next two fiscal years by tightening the state’s belt and stabilizing spending following the tumultuous COVID-19 pandemic, all while preserving key ongoing investments.

Under the Governor’s proposal, the state is projected to achieve a positive operating reserve balance not only in this budget year but also in the next. This “budget year, plus one” proposal is designed to bring longer-term stability to state finances without delay and create an operating surplus in the 2025-26 budget year.

In the years leading up to this May Revision, the Newsom Administration recognized the threats of an uncertain stock market and federal tax deadline delays – setting aside $38 billion in reserves that could be utilized for shortfalls. That has put California in a strong position to maintain fiscal stability.

“Even when revenues were booming, we were preparing for possible downturns by investing in reserves and paying down debts – that’s put us in a position to close budget gaps while protecting core services that Californians depend on. Without raising taxes on Californians, we’re delivering a balanced budget over two years that continues the progress we’ve fought so hard to achieve, from getting folks off the streets to addressing the climate crisis to keeping our communities safe.” – Governor Gavin Newsom

Below are the key takeaways from Governor Newsom’s proposed budget:

A BALANCED BUDGET OVER TWO YEARS.  The Governor is solving two years of budget problems in a single budget, tightening the state’s belt to get the budget back to normal after the tumultuous years of the COVID-19 pandemic. By addressing the shortfall for this budget year — and next year — the Governor is eliminating the 2024-25 deficit and eliminating a projected deficit for the 2025-26 budget year that is $27.6 billion (after taking an early budget action) and $28.4 billion respectively.

CUTTING SPENDING, MAKING GOVERNMENT LEANER.  Governor Newsom’s revised balanced state budget cuts one-time spending by $19.1 billion and ongoing spending by $13.7 billion through 2025-26. This includes a nearly 8% cut to state operations and a targeted elimination of 10,000 unfilled state positions, improving government efficiency and reducing non-essential spending — without raising taxes on individuals or proposing state worker furloughs. The budget makes California government more efficient, leaner, and modern — saving costs by streamlining procurement, cutting bureaucratic red tape, and reducing redundancies.

PRESERVING CORE SERVICES & SAFETY NETS.  The budget maintains service levels for key housing, food, health care, and other assistance programs that Californians rely on while addressing the deficit by pausing the expansion of certain programs and decreasing numerous recent one-time and ongoing investments.

NO NEW TAXES & MORE RAINY DAY SAVINGS.  Governor Newsom is balancing the budget by getting state spending under control — cutting costs, not proposing new taxes on hardworking Californians and small businesses — and reducing the reliance on the state’s “Rainy Day” reserves this year.

HOW WE GOT HERE:  California’s budget shortfall is rooted in two separate but related developments over the past two years.

• First, the state’s revenue, heavily reliant on personal income taxes including capital gains, surged in 2021 due to a robust stock market but plummeted in 2022 following a market downturn. While the market bounced back by late 2023, the state continued to collect less tax revenue than projected in part due to something called “capital loss carryover,” which allows losses from previous years to reduce how much an individual is taxed.
• Second, the IRS extended the tax filing deadline for most California taxpayers in 2023 following severe winter storms, delaying the revelation of reduced tax receipts. When these receipts were able to eventually be processed, they were 22% below expectations. Without the filing delay, the revenue drop would have been incorporated into last year’s budget and the shortfall this year would be significantly smaller.

CALIFORNIA’S ECONOMY REMAINS STRONG:  The Governor’s revised balanced budget sets the state up for continued economic success. California’s economy remains the 5th largest economy in the world and for the first time in years, the state’s population is increasing and tourism spending recently experienced a record high. California is #1 in the nation for new business starts , #1 for access to venture capital funding , and the #1 state for manufacturing , high-tech , and agriculture .

Additional details on the May Revise proposal can be found in this fact sheet and at www.ebudget.ca.gov .

Maker of weight loss drug Ozempic plans to study drug’s effects on alcohol consumption

(CNN) – People on the weight loss drug Ozempic say they’ve experienced an unexpected effect: a lessened desire to drink alcohol.

The feeling has been described by thousands of people taking medicines, which are in a class known as GLP-1 receptor agonists.

Ozempic’s maker, Novo Nordisk, said it intends to study the phenomenon, although cutting the drinking isn’t the study’s main goal.

The company plans to start assessing the effects of semaglutide, the active ingredient in Ozempic and other medicines, on alcohol consumption in a newly announced clinical trial on alcohol-related liver disease.

The trial aims to enroll about 240 participants and is stated to begin May 20.

Experts said treatment options for people with alcoholism and liver disease are needed.

Copyright 2024 CNN Newsource. All rights reserved.

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