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Topic: THE IMPORTANCE OF LOGIC IN

BUSINESS
Period: Prelim
Time Frame: 6 hours

Topic Learning Outcomes:

1. Understand the importance of logic in every business activities.

2. Discuss the difference on each logical competencies.

3. Apply logical actions in every common business issues.

4. Create logic decisions for every business activities

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Enabling Exercises

Enabling Exercise 1

Instruction: Watch the 4- minute video of Jac de Haan about “ Why do competitors open their
stores next to one another?” and explain the logic behind based on the video in three
sentences only to answer the main question.

Watch the video here: https://www.youtube.com/watch?v=jILgxeNBK_8&feature=youtu.be

In order to be a great entrepreneur, you need to have a lot of knowledge and
tactics, which is why you have to compete on position. Because every
entrepreneur has the same perspective and purpose, they become competitors.
They start a comparable business in a particular region, where each of them
aspires to be at the center in order to attract the greatest number of clients in a
given area.

Enabling Exercise 2

Instruction: Watch the 4-minute video of Evan Carmichael about “ Logic vs Emotion- Is business
about logic or emotion?” and answer the main question based on the video in three
sentences only.

Watch the video here: https://www.youtube.com/watch?v=qLMbmHRUf1w

Engaging in business requires not only financial preparation, but also intense
training, because this is where passion and intellect meet. Both of these are
essential; one cannot exist without the other, and the mix of logical and emotional
is required to be mentally prepared. Both of these decision-making tools have their
own advantages, with logic being a technique of making exact choices and
emotion influencing the kind and efficiency with which you make decisions.

Summary Note

THE IMPORTANCE OF LOGIC IN BUSINESS

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Redefining Logic:
 No relevancy with gender, age issues
 Result yielded from human brain
 Driven by sceptical and critical state of mind then raised critical thinking
 To have a common ground about something
Why Important?:
 Human is Ubermensch
 Help us learning to think properly
 Focus our mind so we can come up with a logical solution
 More rational in our decisions
 Helps other understand reasoning behind issues which could be applied in other issues as well
Common Sense:
 Determines what we do, regardless of what we think
 For if we use logic alone, we would probably be able to take only a few actions a day
 Helps us to deal with real world complexity
 Provides shortcut to making critical decisions very quickly
 Sometimes will produce desired results whenever we need to make a decision quickly, but not
always
Ways of Thinking:
 Trainable, Programmable (method and technique)
 Some are: Out-of-the-box, Critical, Strategic, Lateral, Programmatic
 Independent from human brain capacity
 Involved big and little, left and right brain
Logic in Business:
 Consists of unwritten rules, which set up a framework for companies’ mode of action and
possibilities for custom-oriented actions
 Sloan Jr. (1950, p 58) “There is a logical way of doing business in accordance with the facts and
circumstances of an industry
 Then what need to do? Understand, adapt to it or to break with it, thereby creating something
new
 Way of thinking utilized by business executives
Why So Important?:
 Part of business decisions making process
 Utilized for scientific approach
 Objective, waive the subjectivity
 Solid, firm baseline
 Arguable, debatable
 Requires for quantitative analysis
 Complements qualitative analysis
 Understanding the logic in business and reasoning behind a given aspect of reality
 We may be able to adapt, grow, leverage and capitalize using the same reasoning particularly in
challenging situation
 Logic link cause to effect, action to reaction and input to output in business world
 By finding result, we use logic to analyze
 Basis of learning methodology and decision making
 Bad logic link effect to false cause (Fallacy)
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 Catalyst of reason, the foundation of experimentation and the weakness of a lie

 When applied in strategic management process, it involves generation and application of unique
business insights and opportunities
 In the end, it is aimed to form competitive advantage of an organization
 Done individually or collaboratively to shape organizations future
Logic Competency in Business:
 Systems Perspective
Understand implications of strategic actions and has complete end-to-end system of value
creation, his or her role within it
 Intent Focused
To marshal and leverage their energy, to focus attention, to resist distraction, and to concentrate
at the max achieving a goal
 Thinking in Time
Hold past, present and future in mind at same time creating better decision making and speed
implementation
 Hypothesis Driven
Ensuring creative and critical thinking incorporated into strategy making
 Intelligent Opportunism
Being responsive to good opportunities

Source: https://www.slideshare.net/goudotmobi/sbm-itb-guest-lecture-oct13-v15

Main Exercises
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Main Exercise 1

Instruction: Below are the common issues arising in business. Provide logical actions/solutions
to address the issues.

Common Business Issues Logical Actions

1. Unclear Purpose
Develop a decision, put together a plan, and
consider your aims to unlock the confusing
purpose that will allow you to achieve the given
goals for you.

2. Weak Brand Identity

Should have sufficient product expertise and
enhance unique ways to improve your product
Also create a logo that is quickly recognized and
lastly conduct market survey for your brand.

3. Lack of Value Creation

increase your value creation performance listen
to the comments and provide a higher quality of
service ,and discuss the best plan to success.
4. Failure to Planned Ahead The most key thing to remember in this type of
business situation is to constantly use the time
management technique. Be cautious and make it
a habit to consider the possible outcomes in the
future.

5. No Exit Strategy
The logical action to take here is to consider the
long-term picture, identify your goals, and focus
on the growth and expansion of your company.

Main Exercise 2

Instruction: Below are different activities occurring in business. Identify each activity what logical
competency it fall.

THINKING IN TIME 1. ABC Company issued corporate bond because of the predictable income stream.
THINKING IN TIME 2. DEF Company entered to a purchase commitment contract where the company
will acquire goods in a
future time at a current price.
HYPOTHESIS DRIVEN 3. GHI Hotel Company has theorize that the customers are willing to pay at a
maximum price at the time
they book.
THINKING IN TIME 4. JKL Company established their projected income statement based on their past
three years actual
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financial performance.
INTELLIGENT OPPORTUNISM 5. MNO Company entered into joint venture for the benefit of having an
access to new markets and
distribution networks.
INTENT FOCUSED 6. PQR Company invested more in their e-commerce activities than in tradition in-
store model.
THINKING IN TIME 7. STU Company implemented a policy restricting the use of internet access of their
employees.
SYSTEM PERSPECTIVE 8. VWX Company provides a monthly training and seminar to their employees
that are relevant to their
duties and responsibility
HYPOTHESIS DRIVEN 9. AAA Company added the production of eye glass frames on their existing
product line because they
believe it has a higher value in the market compare to the cost they will incur in production.
INTELLIGENT OPPURTUNISM 10. BBB Company decided to apply for ISO 9001 certification for a
quality management.

Reinforcement Exercises

Reinforcement Exercise 1

Instruction: Below are different business cases that need a decision. Provide your propose
logical decision in each item.

1. You are a consultant of a company with multiple branches all over the Philippines. The company
experienced a decline in their revenue. As a result, it is considering store closing. Explain how you’d
advise this client.

- First and foremost, I would encourage my customer to obtain information about the sealable products.
Purchase tax that are greatest sellers and vital truths and minimize purchasing stocks that are not
sealable based on the information acquired. I would also advise him or her to put up barriers in certain
branches that are not profitable and focus on those branches that are gaining more.

2. You are a consultant of a shoe retailer with different branches throughout the country. The sale of the
company is declining and they proposed to sell food at its stores. How would you advise this client?

- I would encourage my client to sell non-perishable processed food products to supplement the income
from his or her shoe store until the store generates enough revenue to cover his or her monthly
expenses.
In addition, I would advise him or her to pay for simple but eye-catching adverts on social media in order
to attract additional clients.

3. You are a consultant of a company that need to decide whether they drop a product or expand into
new markets in order to increase their revenue. What steps would you take to help this company achieve
its objective?

- I would urge him to spend big money while developing a product or entering a new industry because
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those high-risk tactics have a good possibility of succeeding.

New marketing tactics, such as online selling, are becoming increasingly popular, and they can help a
company achieve its objectives faster.

4. You are a consultant of a company producing a popular product. However, a competitor begins selling
a very similar product. What advice do you have to your client?

- In supporting the firm's products, I would urge my client to respect his innovation and be distinctive and
creative. They must prove that they were the first and original company brand to develop such a product.

5. You are a consultant of a company who is proposing to open a branch in a foreign country. What
advice do you have for this company?

- I would urge him or her to run a pilot test in that foreign country first, and if the response of the foreign
community exceeds about 70%, then it is the appropriate time to build a branch in that country.

Reinforcement Exercise 2

Instruction: Create a business course of action that based on logic and facts rather than feelings.

Examples : 1. Prior to constructing employees’ training model, analyze first the review of
Customers.
2. Choosing a team leader according to past evidence of leadership.

1.
Before finalizing vendor contracts, conducting a survey of employees to determine their preferences
for employee benefits.

2.
Getting feedback from users on their software experiences before developing the next generation.

3.
After analyzing the most recent studies on quitting smoking, I'm recommending a method for stopping.

4.
After comparing the historical evidence of leadership actions by prospective candidates, choose who
to designate as team leader at home.

5.
Interviewing outgoing employees to discover trends in unwelcome turnover.

6.
Before finalizing the strategy for the next cycle, reaching out to peers at other organizations to learn
about high-impact techniques.

7.
Developing campaign slogans based on an assessment of likely voters' hot button concerns.

8.
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Prior to developing an advertising campaign, conducting a market research test to gauge consumer
reaction to a new product.

9.
Creating a new sales representative recruiting profile based on an evaluation of the traits of the
company's most productive sales representatives.

10.
A contractor advising a customer who wants the most energy efficient home feasible to install high-
efficiency heating, cooling, and appliances, as well as a passive solar design.

Topic: BUSINESS PROCESS AND BUSINESS

LOGIC
Period: Prelim
Time Frame: 6 hours

Topic Learning Outcomes:

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1. Differentiate process logic and business logic

2. Understand the elements of business decisions.

3. Create business procedure based on business logic and process logic

Enabling Exercise

Enabling Exercise

Instruction: Identify whether each transaction below is an example of “process logic” or

“business logic”.

__________1. Sell to a customer activity includes proposals, orders, delivery, and billing.

__________2. Calculating values such as discount.

__________3. Managers set the performance objectives at the start of a quarter and evaluate the
performance at the end of the quarter.

__________4. Rules for execution of business transactions.

__________5. Change management procedure should be evaluated, prioritized, developed,

implemented and reviewed.

__________6. Making business decisions such as product promotion.

__________7. Assembling bicycles are in a series of twelve sequential steps.

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__________8. Deciding when to notify people of information.

__________9. Planning the levels of inventory is based on factors such as customer demand and
production.

__________10. Deciding how to trigger steps in a process.

Summary Note

BUSINESS PROCESS AND BUSINESS LOGIC

Knowledge Processes
 All business activities are part of in a process. The question is whether the process is prescribed
or adhoc
 Knowledge Processes can be regarded as adhoc business processes
♦knowledge processes may consist of several tasks
♦the order of the tasks maybe determined at run-time
♦even the tasks themselves maybe determined at run-time
 In the extreme case a knowledge process only consists of one task (we sometimes use the term
knowledge-intensive task(KIT) for knowledge work that is not decomposed into activities or
phases in advance)
Separating Processes Logic and Business Logic
 Davenport's distinguishes between process and practice
♦Process–the design for how work is to be done (Process Logic )
♦Practice–an understanding of how individual workers respond to the real world of work and
accomplish their assigned tasks (Business Logic)
 Following this distinction Process Logic and Business Logic should be modelled and managed
separately
♦Process Logic–step-by-step flow of work
♦Business Logic–applying knowledge to derive a result
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Business Processes Containing Knowledge Work

 A process can contain knowledge work
 The prescribed process part can be planned and modelled in advance.
 Business logic can be added to activities
 experts
 documents
 guidelines
 Business rules
 … (in particular to a knowledge intensive task KITs)

Combining Structured Processes and Knowledge Work

 There often is a mixture of prescribed model parts and adhoc parts.
 Example: Sometimes it makes sense
♦to model the process flow of routine cases, e.g. for efficiency and automation
♦treat special cases and exceptions as knowledge work done individually or collaboratively by
the knowledge workers
Approach: Dealing with Knowledge Work in Business Processes
 This is a procedure model for knowledge work in business processes. It separates Process
Logic from Business Logic
1.ProcessElicitation
2.IdentificationofKnowledge-intensive Tasks
3.Modelling
♦Process Flow
♦Business Logic for KITs
4.Continuous Improvement of
♦Business Process Model
♦Business Logic
Operational Business Decisions–A special Kind of Knowledge Work
 In the following we specialize the approach for a specific kind of knowledgework: Operational
Business Decisions
 A decision is characterized by a question
 Examples for decision questions:
♦Should the insurance claim be accepted, rejected or examined for fraud?
♦Which resource should be assigned to this task?
♦Which service should be used to ship this package?
 An operational business decision considers cases arising in day-to-day business and answers
the question for each case by choosing among potential outcomes.
 Each operational business decision involves business logic (know how) to answer the question.
Decisions
 A decision is a determination requiring know-how-the resolving of a question by reasoning.
 An outcome is an answer to such a question
 A decision task is a business task or action in which some decision is made
Decision Tasks in Business Processes
 Decision Tasks occur in business process
 They are knowledge-intensive tasks for operational business decisions
 Decision tasks can provide data for gateways
Decision-aware Business Processes
 A decision-aware business process as one that is designed to distinguish between
♦tasks that perform work (i.e., process tasks) and
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♦tasks that come to conclusions based on business logic (decision tasks)

 This separation enables the details behind a decision task (i.e., business logic) to be
represented in a different kind of model, specific to business logic.
 Separating business decisions from business process tasks
♦simplifies the business process model,
♦allows to manage business logic in a declarative form,
♦offers more creativity in organizing the business logic
♦delivers the business logic in a form that transcends technology options
Managing Decision-aware Business Processes
 The general approach for dealing with knowledge work in business processes can be
specialized to a procedure model for decision-aware business processes:
1. Process Elicitation
2. Decision Analysis: Identify key questions
3. Modelling
♦Process Flow
♦Decision Logic]
4. Continuous Improvement
♦Business Process Management
♦Business Decision Management
Decision Analysis: Capturing Decision Logic
 Decision Analysis identifies and analyses key questions arising in day-to-day business activity
and captures the decision logic used to answer the question.
 The result of decision analysis is decision logic
♦Decision Logic is Business Logic for decision making
♦Decision logic is a set of decision rules for cases in scope of a given decision
♦A decision rule is a business rule that links a case to some appropriate outcome
 Decision logic should be externalized from decision tasks
♦Decision tasks are procedural
♦Decision logic should be declarative
Declarative Representation of Decision Logic
 Decision logic should be represented declaratively
 A declarative representation of Decision Logic
♦specifies the conditions on which a decision is made
♦does not specific how the conditions are tested, in particular it does not specify the order in
which conditions are tested
 Examples of declarative representations of decision logic
♦decision tables
♦business rules
♦Decision Model (von Halle & Goldberg 2010)
♦Q-Charts (Ross 2011)
Distinguishing a Procedural Task from a Declarative Decision
 A procedural solution specifies how, in a step-by-step manner, something is to be done.
♦So a business process model is a procedural solution because it prescribes a set of tasks that
are carried out in a particular sequence.
♦The business process model is the “How” of a unit of work.
 A declarative solution only specifies what needs to be done, with no details as to how, in a step-
by-step manner, it is to be carried out, because sequence is irrelevant to arriving at the correct
result.
♦A Decision Model is a declarative solution because it is a set of unordered business logic, not a
set of ordered tasks.
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♦A Decision Model is the “What” of a special kind of unit of work

Procedural versus Declarative
 A procedural solution specifies how, in a step by step manner, something is to be done (process
logic)
 A declarative solution is what needs to be done, with no details as to the methods to be used (ni
sequential information). (business logic)
Distinctions between Business Process and Business Decision

Business Process Business Decision

Procedural in nature
Consists of tasks connected by sequence
Is all about how (step by step sequence to carry
out work)
Improvements in business process aim for
increased work efficiency
Represented best in procedural business process
model
Declarative in nature
Consists o Rule families connected by inferential
relationships (all independent of sequence)
Is all about what is to be concluded ( the logic
leading from conditions to conclusions)
Improvements in a business decision aim for
smarter business logic
Represented best in a declarative decision model

Improvements by separating business logic from Business Process Model

 Allows a much simpler business process model
 Easily highlights all possible combinations of conditions
 Supports the principle of separation of concerns
♦Permits changes in the Decision Model without changing the business process model
♦Permits changes in the business process model without changing the Decision Model
Disadvantages to Burying Decisions (Business Logic) in Business Processes
1. Forces unnecessary sequence and constraints on business logic
2. Make changes to business process and business logic difficult
3. Adds unmeaningful complexity to business logic and business process
4. Fails to deliver a visual representation of all business logic
5. Makes governance of business process and business logic difficult to manage
6. Results in business logic and business processes that are not reusable
7. Compromises SOA
A Business Process Model does not Reveals All Business Logic
 If the separation of business processes and business logic is not made conscuously, some
business logic might be in the process model while others is missing
 It must then be modelled separately, e.g. in the task descriptions or externally (if it is
represented at all)
 Reusability if hampered: Some of the business logic may be used in several of the tasks(maybe
even several processes).
 The Decision Model resurrects all of the business logic in one visual artifact.
Business Decision Management
 The practice of managing smart, agile decisions is called Business Decision Management
(BDM) or Enterprise Decision Management (EDM)
 Three elements of BDM:
♦Business Motivation: the general business plan, and the specific business objective/s
♦Business Metrics: measurements and time periods that are set by the business objectives
♦Business Logic: logic underlying the business decision that is implemented to achieve the
business objective
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Sources:
Von Halle, B., & Goldberg, L. (2010). The Decision Model: A Business Logic Framework Linking Business and
Technology. CRC Press AuerbachPublications.
Ross, R. G., & Lam, G. S. W. (2011). Building Business Solutions: Business Analysis with Business Rules. Business
Rule Solutions Inc.

Main Exercises

Main Exercise 1

Instruction: Explain the difference between two (2) subject matter based on your own words and
understanding.

Subject Matters Explanation

Process logic vs Business Logic
Process Logic
- is a cause-and-effect explanation of a process. It
expresses all the principal definitions and arguments that
appear to be true for the process and its events, causes and
circumstances. It is the basis for identifying and defining the
process to understand what makes the process start, how
this process is performed, and what effects it produces.

Business Logic
- can be seen in the workflows that they support, such as in
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sequences or steps that specify in detail the proper flow of

information or data

Procedural Solution vs
Declarative Solution
Procedural Solution
- A procedural solution specifies how, in a step by step manner,
something is to be done (process logic)
Declarative Solution
- A declarative solution is what needs to be done, with no details
as to the methods to be used (ni sequential information).
(business logic)

Business Process
- Is all about how (step by step sequence to carry out work)

Business Process vs Business

Decision Business Decision
- Is all about what is to be concluded ( the logic leading from
conditions to conclusions)

Process vs Process with adhoc
subrocess
Process
- A process can contain knowledge work
The prescribed process part can be planned and modelled in
advance.

Process with subrocess

- treat special cases and exceptions as knowledge work done
individually or collaboratively by the knowledge workers

Main Exercise 2

Instruction: Create a specific business procedure based on business logic (declarative solution)
and process logic (procedural solution).

Business Logic (Declarative Solution):

- products or services that businesses use to gain a deeper understanding of their customers'
needs and expectations. They work to streamline and improve customer communications,
therefore increasing customer satisfaction.
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Process Logic (Procedural Solution)

Reinforcement Exercise

Reinforcement Exercise

Instruction: Below is an example of a regular business activity in every banking/financial

institutions. Based on the scenario, answer the following requirements.

ABC Bank offers different kind of loan to their clients such as salary loan, housing loan, and business
loan. Below are the list of requirement on each type of loan:

Salary Loan : Client should have a gross salary of P200,000 annually and have at
least P5,000 on her/his savings account balance.
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Housing Loan : Client should have a gross salary or gross income of P300,000 annually
and have at least 10,000 on her/his savings account balance.
Business Loan : Client should have a gross income of P500,000 annually and have at least
P20,000 on her/his saving account balance.

 Client A, an employee with a salary of P15,000 monthly wants to apply for a salary loan. Client A
has saving account balance of P6,000.
 Client B, an employee with a salary of P20,000 monthly and owned a small business that
earned at least P80,000 annually wants to apply for housing loan. He has a saving account
balance of P5,000.
 Client C who owned a business that has a gross income of P50,000 monthly wants to apply for
a business loan. He has a saving account balance of P15,000.

Requirement 1. Create a business process logic based on the above scenario.

Requirement 2. Complete the elements of business decision based on the above scenario.
Process Case Decision Task Potential Outcome
Outcome
Client A wants to The client have a The client should The client didn’t The client didn’t
apply salary loan salary amounting have gross sale pass the pass on the
to 15k monthly amounting to requirements for requirements for
and savings 200k annually applying the said applying the
account balance and having at salary loan salary loan.
amounting to 6k least 5k on his or because of his or
her savings her gross sale
account bal. amounting to
180k annually
that should be
200k annually to
meet the said
condition but on
his or her account
balance pass the
requirements.
The client have Client B should The client pass The client didn’t
Client B wants to salary amounting have gross salary the requirement pass on the
apply housing to 20k monthly amounting to of having a gross requirement for
loan and earned 80k 330k annually salary income applying a
annually on his or and have at least amounting to housing loan.
her small 10k on his or her 320k annually but
business also he savings account. the client didn’t
or she has a pass the
savings account requirement of
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balance having a amount

amounting to 5k of 10k on his or
her savings
account because
he she have a 5k
only.
The client have a The client should The client pass The client didn’t
Clent c wants to gross income have a gross the requirements pass on the
apply for business amounting to 50k income of 500k for having a gross requirement for
loan monthly and annually and income of 500k applying a
having a 15k on have at least 20k annually and business loan
savings account on the savings have at least 20k
bal. account bal. on savings
account bal.
Because the
client have a 15k
only on it.

Topic: THE IMPORTANCE OF LOGICAL

THINKING IN THE WORKPLACE
Period: Midterm
Time Frame: 6 hours

Topic Learning Outcomes:

1. Understand the importance of logical thinking in decision making process.

2. Understand each phase of the decision making process

3. Discuss the different types of decision making skills

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4. Construct logical situations in in different function in an organization

5. .Apply logical thinking in addressing different case/ scenario in a workplace.

Enabling Exercise

Enabling Exercise
Instruction: Watch the 3:49 minute video of California Management Review about “Decision
Making in Organizations” and summarize it in five (5) sentences.

Watch the video here: https://www.youtube.com/watch?v=w9Cg3_5Bfuw .

By utilizing an approach known as diligence-based strategy, which is based on behavioral

research and strategy practice, the world's best managers can overcome preconceptions and
consistently make effective judgments, allowing the firm to succeed. Furthermore,
organizations should rely on "diligence-based strategy," which focuses on business activities
such as sourcing inputs, managing customer relationships, and developing the right people,
rather than the traditional "big strategy approach," which leaves more room for error,
especially during times of crisis. This type of strategy allows businesses to focus on the most
critical aspects of their operations in a systematic manner. It also means focusing on the
essentials and improving business operations so that the firm may create an atmosphere that
supports stronger and more. Diligence-based strategy is a way for designing and
implementing company strategy that demonstrates how managers may utilize technology and
management discipline to support 21st-century corporate success.

Summary Note
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THE IMPORTANCE OF LOGICAL THINKING IN THE WORKPLACE

What is logical Thinking?

Logical thinkers observe and analyze phenomena, reactions, and feedback and then draw conclusions
based on that input. They can justify their strategies, actions, and decisions based on the facts they gather.
Note: Logical thinkers don't go with their gut or develop a strategy because it "feels right." Logical thinking
also requires setting aside assumptions and biases.
Example: A sales representative modifies a presentation about a product to highlight its user-friendly
qualities after receiving feedback from customers indicating that ease of use was the primary reason that
they had purchased the product.

Examples of Logical Thinking

The following are some examples of logical thinking in the workplace. Take a look at this list, and think
about situations at work where you have used logic and facts — rather than feelings — to work toward a
solution or set a course of action.

 Conducting market research tests to gauge consumer reaction to a new product prior to devising
an advertising strategy.
 Developing a recruiting profile for new sales representatives based on an assessment of the
qualities of the company's most productive sales representatives.
 Recommending a strategy for quitting smoking after reviewing the latest studies on smoking
cessation.
 Analyzing reviews by restaurant customers prior to structuring training protocols.
 Surveying employees about their preferences for employee benefits before finalizing contracts with
vendors.
 Soliciting feedback from users about their experience with software prior to creating the next
generation.
 Deciding whom to designate as team leader after comparing the past evidence of leadership
behaviors by prospective candidates.
 Interviewing departing employees to uncover patterns of unwanted turnover.
 Reaching out to colleagues at other organizations to discover high-impact practices prior to
finalizing strategy for the next cycle.
 Creating campaign slogans based on an assessment of hot-button issues for potential voters.
 A contractor recommending extra insulation, high-efficiency heating, cooling equipment and
appliances, and a passive solar design to a customer who wants the most energy-efficient home
possible.
Logical thinking helps all employees process facts and implement reasonable solutions rather than act on
their emotions. A strategy set based on logic is also more compelling to other employees than a feeling-
based strategy.

Decision-Making Skills
Whether it's a question of deciding which candidate to hire, which consultant to use, or what business plan
to execute, having the capacity to make the best decision is critical for organizations. Organizational
culture and leadership style together determine the process of decision-making in any company.

Note: Some companies may use a consensus-based approach, while others depend on a manager or
management group to make all major decisions for the company.

The Decision Making Process

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1. Define the problem, challenge, or opportunity.

2. Generate an array of possible solutions or responses.
3. Evaluate the costs and benefits, or pros and cons, associated with each option.
4. Select a solution or response.
5. Implement the option chosen.
6. Assess the impact of the decision and modify the course of action as needed.

You will not always find yourself going through all six steps in an obvious way. You might be responsible for
one aspect of the process but not the others, or several steps might be merged, but someone still
should be going through each step in one way or another. Skipping steps usually leads to poor outcomes.

Tip: Remember to develop strategies to ensure that you have not overlooked important information or
misunderstood the situation, and be sure to uncover and correct for any biases you may have.

Types of Decision Making Skills

 Problem Solving
 Collaborative
 Emotional Intelligence
 Logical Reasoning

Source: https://www.thebalancecareers.com/logical-thinking-definition-with-examples-2059690
https://www.thebalancecareers.com/decision-making-skills-with-examples-2063748

Main Exercises

Main Exercise 1

Instruction: Think about related-situation based on different department in a company listed

below that uses logic and fact. Provide 3 situation per department

Department Situation
1.
Finance Department

2.

3.

1.
Accounting Department

2.
 22

3.

1.
Human Resource Department

2.

3.

1.
Marketing Department

2.

3.

1.
Production Department

2.

3.

Main Exercise 2

Instruction: Complete the decision making process below.

1. Define a common problem arises in workplace.

 23

Lack of training

2. Generate possible solutions or responses (at least three option).

3. Cite the costs and benefits or pros and cons of each option

4. Select the best option/solution/response

5. After implementing the option, cite the possible outcome

Main Exercise 3

Instruction: Identify what type of decision making skills fall each of the following item listed
below.

_________________1. Estimating the next year annual sale based on the previous three years actual
sales.
_________________2. Conducting analysis based on computed financial ratios
 24

_________________3. Anticipating the differences of each member of the team.

_________________4. Asking for any suggestions to the team members to address specific concern.
_________________5. Manager must be an active listener to her/his staffs.
_________________6. A leader must be the one who lead her/his team.
_________________7. Conducting cost analysis.
_________________8. Conducting risk assessment procedure in audit.
_________________9. Factual basis for creating a decision making
_________________10. A leaders must be a data-driven in making their decisions.

Reinforcement Exercise

Reinforcement Exercise

Instruction: Read the short case studies below and answer the question using the proper process
of decision making.

Case A:
Mr. A works in a multinational firm where he is Senior Manager (Production). Recently, Ms. B was
appointed Vice President of the company, with Mr. A reporting to Ms. B. Due to some problem in the
production line, Ms. B requests a late evening meeting with Mr. A. When Mr. A goes for the meeting, Ms.
B makes some inappropriate advances on him. Mr. A promptly reports the matter to company HR
manager. The HR manager finds it hard to believe Mr. A's story and along with Ms. B, accuses him of
inappropriate conduct. The matter has leaked to the press and is causing bad publicity for the company.
What should the company do?

Case B
Mr. X has a distinguished academic record and excels in sports and other extra-curricular activities since
childhood. He joined ABC as salesman. In the company it was noticed he was conceited and his
interaction with other people was not exactly cordial. He was indifferent to suggestions from superiors
and subordinates. However, he was a star performer as salesmen and always crossed targets, in the
time he had spent with the company. The company needs a new regional sales manager to improve the
performance of a loss-making region, should they appoint him?
 25

Case C
A restaurant owner is currently setting up a new restaurant. For the restroom, he has three options: paper
towels, roller towels and hot air dryers. Dryers have an initial cost of Rs. 500 each and monthly service
charges of Rs. 100. Paper towels cost 5 paisa and the number of paper towels used varies directly with
the number of customers. Toweling rolls cost Rs. 5 per roll and will be changed daily. Which option
should the owner go for considering this is going to be a posh restaurant?

Case D
A fertilizer company, Pizza and Urea, is located near a village, Payamudirsholai on the banks of river
Pamba. One day, the villagers find fish dying due to fluid waste from the fertilizer plant. The community
makes a representation to the Govt. through their local MLA and fishing being the main source of income
for these villagers, Govt. issues an order whereby the fertilizer company is to be closed down and they
also have to pay compensation to the villagers, while the fertilizer company's contention is that it is not
due to their fault. The company manages to get a stay order on the govt. ruling from the High Court.
 26

While, the social activists go to Supreme Court and hope for justice, common villagers suffer due to the
death of fish. Suggest a solution to the problem in the case.

Source: https://gdpi.hitbullseye.com/MBA/Case-Study-Practice.php
 27

Topic: THE VALUE OF INDUCTIVE AND

DEDUCTIVE REASONING IN
WORKPLACE
Period: Midterm

Topic Learning Outcomes:

1. Differentiate Inductive Reasoning and Deductive Reasoning

2. Provide illustration on Inductive Reasoning and Deductive Reasoning

3. Construct interview situation highlighting Inductive Reasoning and Deductive Reasoning

Enabling Exercise

Exercise
 28

Instruction: Watch the 3:02 video of LiveScience about “Deductive vs Inductive vs Abductive
Reasoning” and cite the differences according to the video

Watch the video here: https://youtu.be/jX3OXwpEpl8

Inductive Reasoning:

Deductive Reasoning:

Abductive Reasoning:

Summary Note

THE VALUE OF INDUCTIVE AND DEDUCTIVE REASONING IN WORKPLACE

 29

What is Inductive Reasoning?

Inductive reasoning is an approach to logical thinking that involves making generalizations based on
specific details. Inductive reasoning is an important critical thinking skill that many employers look for in
their employees.
Inductive reasoning is an example of an analytical soft skill. Unlike hard skills - which are job-specific and
generally require technical training - soft skills relate to how you interact with people, social situations,
and ideas.

What is Deductive Reasoning?

Deductive reasoning relies on a general statement or hypothesis—sometimes called a premise or
standard—held to be true. The premise is used to reach a specific, logical conclusion.
Deductive reasoning differs from inductive reasoning, sometimes know as bottom-up thinking. In contrast,
inductive thinking involves making broad generalizations based on specific observations.

Inductive Reasoning Vs Deductive Reasoning

Inductive reasoning is different from deductive reasoning, where you start with a generalization or theory,
and then test it by applying it to specific incidents. For example, in grade school, our teachers may have
taught the difference to us as "going from big to small" when using deductive reasoning and "going from
small to big" when using inductive reasoning.

Examples of Inductive Reasoning and Deductive Reasoning

Inductive Reasoning Deductive Reasoning

A teacher notices that his students learned more A consumer products firm believes that
when hands-on activities were incorporated into professional women are overloaded with family
lessons, and then decides to regularly include a and work responsibilities and strapped for time.
hands-on component in his future lessons. Therefore, they advertise that their hair coloring
product can be applied in less time than their
competition's hair coloring product.
An architect discerns a pattern of cost overages A human resources department has identified
for plumbing materials in jobs and opts to public speaking skills as an important qualifier for
increase the estimate for plumbing costs in a particular position. They decide to require
subsequent proposals. candidates to make an oral presentation on a
predetermined topic as a part of their second
interview.
A stockbroker observes that Intuit stock increased Management is committed to professional
in value four years in a row during tax season and development for staff members and therefore
recommends clients buy it in March. mandates that a formal professional development
plan is incorporated into all performance reviews.

Types of Inductive Reasoning Skills

 Attention to detail
 Recognizing patterns
 Making projections
 Memory
 Emotional intelligence

Showing Your Inductive Reasoning Skills at an Interview

 30

When highlighting your inductive reasoning during an interview, use the STAR interview response
technique. This is an acronym that stands for:

 Situation
 Task
 Action
 Result

First, describe the situation: Where you were working? What project were you working on?

Then describe the task: What was your responsibility? What problem did you have to solve? What
observations did you make?

Next, explain the action you took: What solution did you implement? How did you translate your
observations into a solution or action?

Finally, explain the result: How did your action help the problem, or help the company more broadly?.
This technique will clearly show the interviewer that you have inductive reasoning skills that can add
value to the company.

Showing Your Deductive Reasoning Skills at an Interview

If you are asked questions about logic or deductive reasoning in your interview, you can use the STAR
interview response technique. STAR stands for:

 Situation
 Task
 Action
 Result

When answering a question with this technique, start by explaining the situation: Where were you
working? What project were you working on? Then, the task: What was the problem you had to solve?
What standard or premise did you hold to be true? Then, the action you took: What conclusion did you
come to based on the standard? What decision did you make? Finally, the result: How did your action
result in an improvement at the company?

Source: https://www.thebalancecareers.com/inductive-reasoning-definition-with-examples-2059683
https://www.thebalancecareers.com/deductive-reasoning-definition-with-examples-2063749

Main Exercises

Main Exercise 1
 31

Instruction: State the important value of using inductive and deductive reasoning in workplace based on
your understanding.

1. Inductive Reasoning
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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____________________________________________________________________________________
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____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

2. Deductive Reasoning
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

Main Exercise 2

Instruction: Identify each of the items below whether it is a inductive reasoning and deductive
reasoning and briefly defend your answer.
 32

___________1. The HR Manager, figured out the reason behind the high performance of the employees
in accounting department, all of the employees were CPAs, because of that, the
manager will focus on accepting accounting employees applicant with CPA title.

___________2. The sales manager found out that when they make a testimony to their current and past
customers with their prospects customers, they’re 80% more likely to make a sale.
Now, they continue to provide a testimony to their prospective clients.

___________3. Reviewing comments of past clients is always beneficial. In addition to positive client’
review to be share to future clients, it let you know the potential problem encountered
by your past clients.

___________4. Clients were not satisfied about how long it takes for a return phone call. Therefore, if the
entity will have a quicker phone call response, clients will be satisfied.

___________5. Only CPAs can enter to a public practice. If graduate of BS Accountancy cannot pass the
CPA board exam, he cannot do public practice.

Reinforcement Exercises
 33

Reinforcement Exercise

. Instruction: Provide at least 5 business activities under inductive reasoning and deductive
reasoning

Inductive Reasoning Deductive Reasoning

1. 1.

2. 2.

3. 3.

4. 4.

5. 5
 34

Reinforcement Exercise 2

Instruction: Create an interview scenario using the format below highlighting inductive and deductive
reasoning based on STAR (situation, task, action result).

Inductive Reasoning
Situation:
Where you working?

What project were you working on?

Task:
What was your responsibility?

What problem did you have to solve?

What observations did you make?

Action:
What solution did you implement?

How did you translate your observations into a solution or action?

Result:
How did your action help the problem, or help the company more broadly?.
 35

Deductive Reasoning
Situation:
Where you working?

What project were you working on?

Task:
What was your responsibility?

What problem did you have to solve?

What observations did you make?

Action:
What solution did you implement?

How did you translate your observations into a solution or action?

Result:
How did your action help the problem, or help the company more broadly?
 36

Topic: A NEW DOMINANT LOGIC FOR THE

SOCIAL CUSTOMER RELATIONSHIP
MARKETER
Period: Final

Topic Learning Outcomes:

1. Understand the relationship between logic and customer relation.

2. Describe the process of how good dominant logic evolve into service dominant logic

3. Analyze how to address the questions of today’s marketer

4. Create a solution on each marketing implications.

 37

Enabling Exercises

Enabling Exercise 1

Instruction: Watch the video of OfficialFrankKern about “logic plus relationship” and based on
the video, briefly discuss your understanding of the relationship between logic and
customer relationship.

Watch the video here: https://youtu.be/OguLgCty8pA

_________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

Enabling Exercise 1

Instruction: Watch the video of Emeral Publishing about “Transitioning from a good-dominant logic to a
service-dominant logic” and based on the video, break down all important factors that lead to this
transition.

Watch the video here: https://youtu.be/ofEOJnJxU8w

_________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

Summary Note
 38

A NEW DOMINANT LOGIC FOR THE SOCIAL CUSTOMER RELATIONSHIP MARKETER

Goods Dominant Logic

 Value is created at the moment of exchange, after that, the customer is on his own
Service Dominant Logic
 Is not about selling services. It’s a value co creation happens after value exchange.
Note: Value is co-created when customer desired outcomes are met

Five Questions for today’s marketers

1. Do you understand how and to what extend your customers are meeting their desired outcomes when
using (experiencing) your product or services (over its lifetime)?
2. What interactions with your product, services, partners, employees, touch-points, their networks and
relationships influence and shape customers’ experiences in use?
3. What opportunities do you see to engage in the customer’s value-creation process?
4. What opportunities do you see to pro-actively help the customer meet their desired outcomes through
(new ways of) interacting (in & via networks) and building relationships?
5. Who do you need to collaborate with to purposefully design and execute experiences over a lifetime of
use to exploit these opportunities?

Implications for Marketing

 Marketing’s 1st job is to understand customers’ value creation process (jobs and desired outcomes)
and where in the process customers fail to meet their desired outcomes.
 Marketing 2nd job is to build relationships in communities of individuals with similar desired
outcomes and behaviour.
 Marketing 3rd job is to support customers’ value creation process
 Marketing 4th job is to design experiences that stimulate company’s engagement through
interactions in networks of relationships.
 Marketing 5th job is to engage employees and partners in supporting customers in their process of
value creation
 Marketing 6th job is to extract actionable insights from 360-degree feedback to foster innovations
and to turn them into value propositions that attract new customers
 Marketing 7th job is to redesign metrics to capture the network value for the firm and to ensure there
is high correlation between these metrics an customers’ value created.

Marketing Laws
 The P’s remain valid, but less dominant. Focus is no longer dominantly on product and value chain
towards value exchange.
 Segmentation based on demo/ socio-graphics come 2nd, after segmentation based on customer
jobs and desired outcomes

Source: https://www.slideshare.net/wimrampen/service-logic-a-new-dominant-logic-for-the-social-customer-relationship-marketer

Main Exercises
 39

Main Exercise 1

Instruction: Identify the items below whether it is a Good Dominant Logic or Service Dominant
Logic.

__________________1.Wellness care.
__________________2. Quality
__________________3. Patient-centered care
__________________4. Health care
__________________5. Consumer-directed care
__________________6. Value
__________________7. Health enhancement
__________________8. Patient stewardship
__________________9. Health investment
_________________10. Consumer value selection

Main Exercise 2

Instruction: Answer each of the following questions for today’s marketing briefly.

1. Do you understand how and to what extend your customers are meeting their desired outcomes when
using (experiencing) your product or services (over its lifetime)?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
2. What interactions with your product, services, partners, employees, touch-points, their networks and
relationships influence and shape customers’ experiences in use?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
3. What opportunities do you see to engage in the customer’s value-creation process?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
4. What opportunities do you see to pro-actively help the customer meet their desired outcomes through
(new ways of) interacting (in & via networks) and building relationships?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
 40

______________________________________________________________________________________
5. Who do you need to collaborate with to purposefully design and execute experiences over a lifetime of
use to exploit these opportunities?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

Reinforcement Exercises

Reinforcement Exercise 1

Instruction: If you are a marketer, how will you address each phase/ stage of your job

1. Understand customers’ value creation process (jobs and desired outcomes) and where in the process
customers fail to meet their desired outcomes.
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

2. Build relationships in communities of individuals with similar desired outcomes and behaviour.
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
3. Support customers’ value creation process
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

4. Design experiences that stimulate company’s engagement through interactions in networks of

relationships.
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
5. Engage employees and partners in supporting customers in their process of value
 41

creation_______________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

6. Extract actionable insights from 360-degree feedback to foster innovations and to turn them into value
propositions that attract new customers
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
7. Redesign metrics to capture the network value for the firm and to ensure there is high correlation
between these metrics an customers’ value created.
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

Reinforcement Exercise 2

Instruction: Make your own research about how goods dominant logic evolve into service
dominant logic and the need of such change.

____________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
_____________________________________________________________________________________