BUSINESS LOGIC

1. Define what business is as well as its purpose.

A business is any company, group, or other body that accepts payment from clients in
return for products and/or services. A company's goal is to make money for its owners or
shareholders by developing and providing goods and services that satisfy its consumer
needs. Additionally, by boosting innovation and technological improvements, generating
jobs, and supporting economic growth, corporations may also positively impact society.

2. Give the importance of business logic in the decision-making process? Cite one business
scenario where business logic can be applied.
Business logic offers an organized and methodical way to assessing complicated
circumstances and coming up with the best answers, that’s why it is crucial in decision-
making. Businesses may use business logic to make data-driven decisions that reduce
risks, enhance profitability, and support their goals and objectives.

Marketing strategy is one instance where business logic may be used. Businesses must
take into account a number of variables when creating a marketing strategy, including the
target market, competition, budget, and market trends. Businesses may reach the
customers they want and receive the intended outcomes by using business logic to
identify the best pricing schemes, marketing channels, and promotional activities.

3. What are the sole questions that a business model is supposed to answer?
A carefully planned business model aims to provide answers to a few crucial questions
that are necessary for starting and maintaining a profitable company. Among these
inquiries are:

1. What issue does our company address?

2. Who are the clients we want to reach?
3. How can we generate income?
4. How do we provide our clients with value?
5. Which special selling points do we have?
6. How can we attract clients?
7. In what ways do we keep customers?
8. What are the expenses we incur in providing our product or service?
9. How is cash flow managed?
10. What risks do we face, and how can we reduce them?
4. Give five (5) examples of business models and a sample corporation or entity that uses
such type.
A. Manufacturer: Magnolia Inc.
B. Distributor: Jeanees Enterprises
C. Franchise: Jollibee Inc.
D. Ecommerce: Shopee
E. Networking Marketing: Personal Collection

5. This business model is involved in the listing of an offering by the seller and the buyers
making repeated bids to buy that offering while fully aware of other bids by other buyers.
Auction-Based

6. A business that makes finished products from raw materials.

Manufacturer

7. It is a business strategy that combines products or services to offer a package gathered as

a single combined unit to sell at a comparatively low price. It is the form of convenient
purchasing for several products and services from a single business unit.
Bundling Business Model

8. Site some pitfalls in business planning and how can those pitfalls be avoided.
A. Insufficient market research: Insufficient market research might result in a poor
comprehension of the target market and a poorly conceived supply of goods or services.
Businesses should do thorough studies on their target market, including customer tastes
and behaviors, to avoid this.

B. Failure to establish clear goals and objectives: It can be challenging to keep focused
and gauge performance in the absence of defined objectives. Companies should establish
goals that are precise, quantifiable, and have a deadline for completion.

C. Ignoring the competition: Ignoring the competitors and their advantages and
disadvantages might lead to a poor-quality offering of goods or services. Companies
should be aware of the offerings and costs of their rivals and adjust set themselves apart.