BUSINESS LOGIC (An Overview) partnership agreement or articles

of partnership.
I. Definitions of Business
 Limited partnership is
 A business is defined as an composed of partners whose
organization or enterprising entity liability is limited to the amount of
engaged in commercial, capital contributed, provided the
industrial, or professional person plays no active role in the
activities. business, or not participating in
 Businesses can be for-profit its operation.
entities or nonprofit organizations.  Corporation is a legal entity
 There are businesses that run as whose assets and liabilities are
small operations in a single separate from those of its
industry while others are large owners. As a legal person, its
operations that spread across personality is distinct from its
many industries around the world. owners.

II. Types of Business The articles of incorporation must

contain a number of things, including the
When a business is being organized, corporation’s name, its intended life, its
one of the first decisions that have to business purpose, the number of shares
be made concerns the form of that can be issued. This is submitted to
business ownership. the Securities and Exchange
 Sole proprietorship is a Commission for incorporation, together
business owned by one person. with the by-laws.
This is the simplest type of III. Definition of Logic
business to start and is the least
regulated form of organization.  a proper or reasonable way of
 Partnership is an association of thinking about or understanding
two or more persons who operate something.
a business as co-owners by  a science that studies the
voluntary legal agreement. Each principles of correct reasoning.
partner contributes resources and  The process of making inferences
money to the business and based upon observed patterns, or
shares in the profits and losses of simple repetition. Often used in
the business. reference to predict about what
 General partnership is one in will happen or does happen
which partners are liable for the based upon what has happened.
business debts. Partners share in  The study of truths based
gains and losses, and all have completely on the meanings of
unlimited liability for all the terms they contain.
partnership debts. The way  Logic is a process for making a
partnership gains (losses) are conclusion and a tool you can
divided as described in the use.
  The foundation of a logical But without business rules to create a
argument is its proposition or framework, business logic cannot exist.
statement.
Business logic is any part of a business
 The proposition is either
enterprise that makes up a system of
accurate (true) or not accurate
processes and procedures, whereas
(false)
anything else is an example of a
 Premises are the propositions
business rule.
used to build the argument.
 The argument is then built on
premises. Logic in business
Then an inference (interpretation) is In the world of competition, it has
made from the premise become crucial to prove something true
or false but reaching at objectivity will
 Finally, a conclusion is drawn.
help in business research and
IV. Business Logic development and assist managers to
make practical decisions.
 Business logic is the custom rules
or algorithms that handle the For discovering the objective reality, it is
exchange of information between not rational to set aside logic.
a database and user interface. Businessmen and managers must
 Business logic is essentially the thinking critically and objectively will be
part of a computer program that their key to success. Logic is a study
contains the information (in the to distinguish between correct and
form of business rules) that incorrect reasoning which is vital in
defines or constrains how a making various business decisions.
business operates.
Businesspersons need to be efficient in
 Business logic can be seen in the
developing argument and bargaining so
workflows that they support, such
this helps the businessmen becoming
as in sequences or steps that
wise and making rational decisions,
specify in detail the proper flow of
while understanding good
information or data, and therefore
argumentation can help them spot the
decision-making. Business logic
faulty arguments that are used to
is also known as "domain
manipulate them for instance sellers
logic."
want to sell products that don't actually
work or medical products that are not for
the prescribed problem.
Business Logic vs. Business Rules
Hence, they can be spared from waste
Business rules are useless without
of money by buying such products.
business logic to determine how data is
calculated, changed, and transmitted to
users and software.
 building blocks when you want to start a
business, including customers, route to
market, value proposition and finance.
BUSINESS MODEL
What is business model?
The blocks on the BMC are:
A business model is a conceptual
1. Customer Segments: Who are the
structure that supports the viability or
customers? What do they think? See?
feasibility of the business and explains
Feel? Do?
who the business serves to, what it
offers, how it offers it, and how it 2. Value Propositions: What’s
achieves its goals. All the business compelling about the proposition? Why
processes and policies that a company do customers buy, use?
adopts and follows are part of the
3. Channels: How are these
business model.
propositions promoted, sold, and
According to management guru Peter delivered? Why? Is it working?
Drucker:
4. Customer Relationships: How do
“A business model is supposed to you interact with the customer through
answer who your customer is, what their ‘journey’?
value you can create/add for the
5. Revenue Streams: How does the
customer and how you can do that at
business earn revenue from the value
reasonable costs.”
propositions?
Thus, a business model is a description
6. Key Activities: What uniquely
of how a company creates, delivers, and
strategic things does the business do to
captures value for the customer as well
deliver its proposition?
as itself.
7. Key Resources: What unique
strategic assets must the business have
II. What are the Components of a
to compete?
Business Model?
8. Key Partnerships: What can the
An ideal business model usually
company not do so it can focus on its
conveys four key aspects of the
Key Activities?
business which is presented using a
specialized tool called business model 9. Cost Structure: What are the
canvas. These key components are: business’ major cost drivers? How are
they linked to revenue?
 Customers
 Value proposition Each of these blocks needs to be
 Operating model, and accurately filled in, and revisited
 Revenue model regularly to ensure the business model
is still accurate – it’s a good thing to do
The Business Model Canvas (BMC) is
before you register a business.
a business tool used to visualize all the
Precisely, a business model answers the questions that relates business to the
following key questions – customers:
1. Who is the customer? (Customers)  How does business get the job
done?
2. What value does the business deliver
 How does the business relieve
to the customers? (Value proposition)
the customer’s pain?
3. How does the business operate?  How can the business help the
(Operating model) customer get the gains?
4. How does the business make money? How does the Business Operate?
(Revenue model)
It’s the operating model of the business
that elaborates:
Who is the Customer?
 Key Activities: What all offerings
The customer forms the heart of a does the business sell to the
business model. It answers who the customers?
company plans to sell its offerings to. A  Key Partners: Who all help the
business usually groups the customers business in delivering value to the
into different segments with certain customers?
homogeneous needs, characteristics, or  Key Resources: What all
behavior. It then defines one or more resources does the business use
customer segment that it serves or to develop and deliver its
wants to serve, followed by an answer to offerings?
why it plans to serve this segment.  Key Channels: What channels
does the business use to deliver
What Value does the Business its offerings to the customers.
Deliver to the Customers?  Customer Relationships: What
type of relationships does the
This is the most important component of business maintain with its
a business model that answers several customers?
keys customers and business’s. value
related questions. It is often usually How does the Business Make
presented using a value proposition Money?
canvas.
Making money is important for the
 What are the jobs the customer business to sustain. This component of
wants to be done? the business model focuses on
 What are their pains in doing the elaborating on the financials and how
job? the business makes money.
 What do they gain by doing the It’s called the revenue model of the
job? business and has two components:
Once these questions are answered, the
business answers another set of
a. The cost structure includes all the model) and it didn’t even charge for it
expenses that the business incurs in (revenue model). Netflix’s business
creating and delivering value to the model was preferred over others as it
provided value in the form of consistent
customers.
on-demand content instead of the usual
b. The revenue streams include all the TV streaming business model.
primary and non-primary revenue
IV. Types of Business Model
streams that the business utilizes.
There are different types of business
III. Why is it Important to Develop a
models meant for different businesses.
Business Model?
Some of the basic types of business
The business model acts as the models are:
blueprint of the business and a roadmap
1. Manufacturer - A manufacturer
for its success (or failure). This tool
makes finished products from raw
helps the founders decide how their
materials. It may sell directly to the
business will work and make money.
customers or sell it to a middleman i.e.,
It is the only documentation that makes another business that sells it finally to
clear – the customer. Examples – Ford, 3M,
General Electric, San Miguel Corp.,
 The business concept – the Nestle
market opportunity the business
capitalizes on. 2. Distributor - A distributor buys
 The target market the business products from manufacturers and resells
caters to. them to the retailers or the public.
 The problems the business Examples – Auto Dealerships
intends to solve.
3. Retailer - A retailer sells directly to
 The solution the business offers
the public after purchasing the products
and how it creates customer
from a distributor or wholesaler.
value.
Examples – Amazon, Tesco.
 How the business gets its
customers. 4. Franchise - A franchise can be a
 The operating model the manufacturer, distributor, or retailer.
business follows. Instead of creating a new product, the
 How the business makes money franchisee uses the parent business’s
and what are the costs incurred model and brand while paying royalties
to get the same. to it. Examples – McDonald’s, Pizza
Hut, Jollibee
Moreover, the business model gives a
reason for the customers to choose the
offering over others in the market.
People chose Facebook because it
helped them connect and chat with other
people around the world (operating
5. Brick-and-Mortar - Brick-and-mortar 10. Subscription - If customer
is a traditional business model where acquisition costs are high, this business
the retailers, wholesalers, and model might be the most suitable option.
manufacturers deal with the customers The subscription business model lets
face-to-face in an office, a shop, or a you keep customers over a long-term
store that the business owns or rents. contract and get recurring revenues
from them through repeat purchases.
6. Ecommerce - E-Commerce business
Examples: Netflix, LinkedIn, Amazon
model is an upgradation of the
Prime, Dollar Shave Club
traditional brick-and-mortar business
model. It focuses on selling products by 11. Online Marketplace - Online
creating a webstore on the internet. marketplaces aggregate different sellers
into one platform who then compete with
7. Bricks-and-Clicks - A company that
each other to provide the same
has both an online and offline presence
product/service at competitive prices.
allows customers to pick up products
The marketplace builds its brand over
from the physical stores while they can
different factors like trust, free and/or on-
place the order online. This model gives
time home delivery, quality sellers, etc.
flexibility to the business since it is
and earns commission on every sale
present online for customers who live in
carried on its platform. Examples –
areas where they do not have brick-and-
Amazon, Alibaba.
mortar stores. Examples – Almost all
apparel companies nowadays. 12. Advertisement - Advertisement
business models are evolving even
8. Nickel-and-Dime - In this model, the
more with the rise of the demand for free
basic product provided to the customers
products and services on the internet.
is very cost-sensitive and hence priced
Just like the earlier times, these
as low as possible. For every other
business models are popular with media
service that comes with it, a certain
publishers like YouTube, Forbes, etc.
amount is charged. Examples – All low-
where the information is provided for
cost air carriers.
free but are accompanied with
9. Freemium - This is one of the most advertisements which are paid for by
common business models on the identified sponsors.
Internet. Companies offer basic services
13. Data Licensing / Data Selling -
to the customers for free while charging
With the advent of the internet, there
a certain premium for extra addons. So,
has been an increase in the amount of
there will be multiple plans with various
data generated upon the users’ activities
benefits for different customers.
over the internet. This has led to the
Generally, the basic service comes with
advent of a new business model – the
certain restrictions or limitations, such as
data licensing business model. Many
in-app advertisements, storage
companies like Twitter sell or license the
restrictions etc., which the premium
data of its users to third parties who then
plans shall not have. Examples: Zoom,
Dropbox, MailChimp, Evernote etc.
use the same for analysis, advertising, make a sale of the product. Examples:
and other purposes. Front row, Avon, Herbalife, Usana
14. Affiliate Marketing - Affiliate 17. Crowdsourcing - Crowdsourcing
marketing business model is a business model involves the users to
commission-based model where the contribute to the value provided.
affiliate builds its business around Crowdsourcing involves obtaining work,
promoting a partner’s product and information, or opinions from a large
directs all its efforts to convince its group of people who submit their data
followers and users to buy the same. In via the Internet, social media, and
return, the affiliate gets a commission for smartphone apps. Examples: Wikipedia,
every sale referred. Affiliate marketing is Duolingo, YouTube, Waze.
the process of promoting other people’s
18. Blockchain - The Blockchain is an
(or company’s) products/services and
immutable, decentralized, digital ledger.
earn a commission every time you refer
It is a digital database that no one owns
a paid customer to an affiliate offer
but anyone can contribute to. Many
musing your unique affiliate link. It’s a
businesses are taking this decentralized
type of performance-based marketing
route to develop their business models.
which means no sale, no commissions.
Models based on blockchain are not
Examples: Click bank, JVzoo, CJ
owned or monitored by a single entity.
affiliate, Warrior Plus, Amazon Affiliate
Rather, they work on peer-to-peer
program
interactions and record everything on a
15. Drop shipping - Drop shipping is a digital decentralized ledger. Blockchain-
type of e-commerce business model based businesses make a profit using
where the business owns no product or tokens and offer Blockchain as a service
inventory but just a store. The actual Examples: Bitcoin, Ethereum, Coins.ph
product is sold by partner sellers who based business model.
receive the order as soon as the store
19. High Touch - The High Touch model
receives an order from the ultimate
is one which requires lots of human
customer. These partner sellers then
interaction. The relationship between the
deliver the products directly to the
salesperson and the customer has a
customer. Examples: Dropify, Alibaba,
huge impact on the overall revenues of
Lazada
the company. The companies with this
16. Network Marketing - Network business model operate on trust and
marketing or multi-level marketing credibility. Examples – Hair salons,
involves a pyramid structured network of consulting firms.
people who sell a company’s products.
20. Low Touch - The opposite of the
The model runs on a commission basis
High Touch model, the low touch model
where the participants are remunerated
requires minimal human assistance or
when they make a sale of the
intervention in selling a product or
company’s product and their recruits
service. Since as a company, you do not
have to maintain a huge sales force,
your costs decrease, though such fee. Examples: Glassdoor, Hubspot,
companies also focus on improving Shopify.
technology to further reduce human
24. Multi-sided platform model - Any
intervention while making the customer
company that offers services to both
experience better at the same time.
sides of business carries out a multi-
Examples: Ikea, SurveyMonkey, use of
sided business model. The perfect
digital platforms in banking
example is LinkedIn, which provides
transactions., Zendesk
subscription services to people to find
21. Auction-Based - Mostly used for job opportunities as well as to HR
unique items that are not frequently managers to find candidates for their
traded and that don’t have a well- vacancies. Example: LinkedIn,
established market value, like Freelancer.com
collectables, antiques, real estate, and
25. Hidden revenue business model -
even businesses. This business model
This model refers to a revenue
involves the listing of an offering by the
generation system in which users don’t
seller and the buyers making repeated
have to pay for the services offered, but
bids to buy that offering while fully aware
the company still earns revenue streams
of other bids by other buyers. eBay is
from other sources. Like, Google earns
one such auction platform.
from advertising money spent by
22. Reverse-Auction-Based - A reverse businesses to bid on keywords while
auction is an auction where the roles of users don’t pay for the search engine.
a buyer and seller are exchanged, i.e., Examples: Google, Facebook,
sellers bid prices instead of buyers. The Instagram, Twitter
reverse-auction-based business model
26. Bundling Business Model -
is often used when there are several
Bundling is a business strategy that
sellers selling a similar offering to a
combines products or services to offer a
single buyer. These sellers lower their
package gathered as a single combined
price with every bid and generally, the
unit to sell at a comparatively low price.
bidder with the lowest bid wins the
It is the form of convenient purchasing
auction. However, there are cases when
for several products and services from a
the bidder with a price higher than the
single business unit. Example: Microsoft
lowest bid wins the auction as the buyer
Office 365 (PowerPoint, Excel, Word,
likes his offer (offering with add-ons). A
OneNote, Outlook) Value meal at
platform which lets sellers bid for
Burger King or McDonald’s, Printer and
government contracts is an example of a
ink
reverse auction-based business model.
27. Fractionalization business model
23. User Community - Driven by the
- Fractionalization model is selling a
network effect, this business model
product or service for partial usage or
involves granting access to a community
separate parts. It’s a strategy which
or a network in return for a membership
divides products and services into
further subcategories to introduce
variety in the products, charging for sensible solution. It is similar to
each category separately. Example: You critical thinking.
can sell a pizza by the box or individual  Logical thinking uses reasoning
slices of different varieties skills to objectively study any
(cheese/pepperoni). problem, which helps make a
rational conclusion about how to
Logical Thinking in the Workplace
proceed. For example, you are
Everyone in the business world facing a problem in the office, to
struggles to make the best decisions. address that, you use the
available facts, you are using
Logic is a tool we can use to help us logical reasoning skills.
make better business decisions.
The word "logic" comes from the Greek
word meaning "reason."
Logic is the process of using rational
reasoning in order to make a valid
II. Logical Thinking
argument. We use logic to make a point,
make a decision, or convince others to Examples
agree with us.
Logical thinking is an umbrella term for
I. What is Logical Thinking? different ways to reach a factual,
reasonable conclusion.
 Logical thinking is analyzing a
situation or problem using reason Examples of types of logical thinking
and coming up with potential include:
solutions. Logical thinkers gather
 Inference
all the information they can,
assess the facts, and then  Inductive reasoning
methodically decide the best way  Deductive reasoning
to move forward. 1. Inference - Inferencing happens
 Logical thinking is an essential when we assume something new based
tool in the workplace to help on facts we already know.
analyze problems, brainstorm
ideas, and find answers. 2. Inductive Reasoning - Inductive
Employers want employees who reasoning is a type of reasoning that
can come up with the right moves from specific to general. You start
solutions that are financially with a specific observation and pattern
reasonable, probable, and recognition, then come to a general
actionable. conclusion.
 Logical thinking can also be Not all conclusions are correct in this
defined as the act of analyzing a type of logical thinking because specific
situation and coming up with a circumstances don’t always apply to a
general rule. However, you’ll end with a
general conclusion that you can then logical thinkers to think outside the box
further research. and come up with innovative solutions.
Logical thinking isn’t just about following
3. Deductive Reasoning - Contrary to
the facts but also figuring out how to
deductive reasoning, this type of logical
connect them and unearth them in
thinking moves from the general to the
expected ways.
specific. You start with a general
premise and then apply it to a specific 4. Reasoning - Reasoning is the ability
premise. to assess things logically and rationally.
Reasoning typically comes in the later
III. Logical Thinking Skills
stages of the logical thinking process
Logical thinking requires multiple skills when you’re deciding between multiple
you’ll need to exercise at various points ways to move forward. Then, you can
when solving problems. These skills use reasoning to compare solutions for
include: their benefits and disadvantages.

 Problem-solving IV. Ways To Improve Your Logical

 Critical thinking Thinking
 Creativity While logical thinking is a soft skill, it’s
 Reasoning easy to practice and improve tangibly,
1. Problem-solving - The goal of logical like most hard skills you may learn in
thinking is to problem solve. Problem- class. In addition, you don’t need to be
solving has three parts: identifying why faced with a workplace problem to work
the problem’s happening, brainstorming on your logical thinking; there are ways
solutions, and deciding which solution to to build this skill in your personal life.
move forward with. This skill requires 1. Build Creative Habits - Spend more
both analysis and creativity, as a strong time on creative hobbies such as playing
problem-solver analyzes the facts and music, solving riddles, and reading.
finds creative solutions.
These are some hobbies that can
2. Critical Thinking - People often stimulate your mind and promote logical
consider critical thinking synonymous thinking in a better manner.
with logical thinking, yet critical thinking
comes into play most at the beginning of Creative thinking naturally comes from
the problem-solving process. Critical practicing more problem-solving
thinkers analyze problems to get to the hobbies. The more you challenge your
bottom of the facts and evidence. They minds to answer and solve different
are objective, free of bias, and focused problems at work, the better you get at
on accuracy. your logical thinking skills over time.

3. Creativity - When we think of the Word games, painting, drawing, and

word “logical,” we might not think of crafting are other creative habits to try.
creativity — yet it’s creativity that allows
2. Learn a New Skill - Learning a new more logically you can handle problems
skill requires patience, time, effort, and at work, the more easily you will be able
focus — all things you need when trying to advance in your career.
to solve a new problem. However, you
V. Importance of Logical Thinking in
don’t need to learn how to code or
the Workplace
practice software engineering to improve
work-related logical thinking skills. 1. It Encourages Independent
Abilities
Learning how to crochet or play a new
instrument, for example, will help you You may require multiple
flex logical thinking as you develop your demonstrations and examples in your
new skill. life to learn and comprehend processes.
However, prolonged and frequent
3. Practice Breaking It Down - If you’re
demonstration systems do not work
a big picture thinker, it can be hard to
because problem solving requires
look at all the details before diving in
reasoning and analysis. So, you must
and trying to offer solutions. However, a
acquire independent reasoning abilities
crucial part of logical thinking is breaking
that define logical thinking.
down individual facts and connecting
them to a reasonable conclusion. 2. It Promotes Creativity And
Innovation
Start by breaking down a task you must
do in your everyday life. For example, if Think out of the box to devise creative
your task is “get ready for work,” break solutions to your problems. Here is
this down into tasks like “brush my where logical thinking comes in handy
teeth,” “take a shower,” and “get because it allows you to innovate better
dressed.” This practice will help develop ideas and give a controlled sense to the
a habit of zooming into smaller events happening in your life.
components of bigger issues.
3. It Helps Enhance Analytical
4. Socialize with others - Building Thinking
relationships with others can broaden
your perspective, giving you more You weigh down all possible results and
opportunities to develop your logical evaluate different options to ensure a
thinking skills. When you get to know favorable outcome for your decisions.
someone better and learn his point of Logical reasoning enables you to master
view, it may help you approach multiple choice questions in various
problems at work in a new and different ways to get the desired answer by
way. thinking better about the solution.

There are many ways you can invest 4. It Helps Strengthen The Brain
time in building relationships, from If you think about logical reasoning
participating in an activity you both enjoy meaning, it involves diverse tasks that
to simply eating lunch or meeting over help activate various parts of your brain
coffee together on a regular basis. The - memory, visual-shape memory, verbal-
logic memory, etc. The process helps
strengthen your brain and enables you
to distinguish significant facets of life.
5. It Helps Enhance Focus
Logical thinking is one of the best ways
to increase your concentration. The
reasoning ability tests require your focus
on problem-solving and include multiple
methods and strategies to keep you
hooked and develop positive self
esteem.