Fundamentals of Logical Thinking in Business Logic

Question 1

Logical thinking is essential in business decision-making as it allows entrepreneurs, managers,
and executives to _____, _____, and ____

Answer 1

evaluate information, recognize patterns, and make rational choices.

Question 2

It refers to the structured and reasoned approach used to analyze problems, make decisions, and implement solutions in a business context. It involves deductive and inductive reasoning, avoiding logical fallacies, and using problem-solving frameworks effectively.

Answer 2

Business logic

Question 3

It is essential in business decision-making as it allows entrepreneurs, managers,
and executives to evaluate information, recognize patterns, and make rational choices

Answer 3

Logical thinking

Question 4

It starts with a general principle or theory and applies it to specific cases. If the premises are true, then the conclusion must also be true.

Answer 4

Deductive reasoning

Question 5

Premise 1: All businesses that provide excellent customer service retain more customers.
Premise 2: Jollibee focuses on excellent customer service.

Conclusion:

Answer 5

A company follows a general business principle:

Conclusion: Jollibee will retain more customers.

Question 6

_________ , on the other hand, starts with specific observations and forms a general
principle. It is based on patterns, trends, or experiences, and while conclusions are probable, they are not always certain.

Answer 6

Inductive reasoning

Question 7

Observation 1: Online businesses in Metro Manila saw an increase in sales during the
COVID-19 lockdown.
Observation 2: Small food businesses in Cebu also reported a rise in delivery orders
during the pandemic.
Conclusion:

This conclusion is based on past observations, but it does not guarantee that every business will
succeed by going online.

Answer 7

Inductive Reasoning

Conclusion: Businesses that adopt online platforms during crises are likely to experience
increased sales.

Question 8

Common Logical Fallacies in Business

Answer 8

1. Hasty Generalization
2. Post Hoc Fallacy (False Cause)
3. Ad Populum (Bandwagon Fallacy)
4. Appeal to Emotion
5. False Dilemma (Either-Or Thinking)

Question 9

are errors in reasoning that can mislead decision-makers.

Answer 9

Logical fallacies

Question 10

Making a broad conclusion based on insufficient evidence.

Answer 10

Hasty Generalization

Question 11

Assuming that because one event happened before another, the first caused the second.

Answer 11

Post Hoc Fallacy (False Cause)

Question 12

Believing something is right because many people do it.

Answer 12

Ad Populum (Bandwagon Fallacy)

Question 13

Using emotions instead of logical reasoning to persuade.

Answer 13

Appeal to Emotion

Question 14

Forcing only two choices when more exist.

Answer 14

False Dilemma (Either-Or Thinking)

Question 15

Problem-Solving Frameworks in Business

Answer 15

Businesses need structured ways to analyze and solve problems effectively.

Question 16

Problem-Solving Frameworks in Business

Answer 16

1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
2. Five Whys (Root Cause Analysis)
3. PDCA (Plan-Do-Check-Act Cycle)

Question 17

A small bakery in Bulacan conducts a SWOT analysis:

Strengths: Unique Filipino-Spanish bread recipes, loyal customers.

Weaknesses: Limited online presence, small production capacity.

Opportunities: Growing demand for home-based and artisanal bakeries.

Threats: Rising ingredient costs and competition from commercial bakeries.

By analyzing these factors, the bakery decides to expand its online sales and look for
cost-effective suppliers.

Answer 17

SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

Question 18

A method to identify the underlying cause of a problem.

Answer 18

Five Whys (Root Cause Analysis)

Question 19

Example in a Philippine Call Center:
●
Problem: High employee turnover rate.
1. Why? Employees feel stressed.
2. Why? Work shifts are too long.
3. Why? There’s high call volume.
4. Why? The company has fewer employees handling customer inquiries.
5. Why? The hiring process is slow.

Solution: The company implements a faster hiring process and better shift management to
reduce stress.

Answer 19

Five Whys (Root Cause Analysis)

Question 20

A continuous improvement method used in business.

Answer 20

PDCA (Plan-Do-Check-Act Cycle)

Question 21

Example in the Philippine Manufacturing Industry:
A canned food company wants to reduce production waste:

Plan: Implement a new quality control process.
Do: Test the process in one production line.
Check: Measure if waste is reduced.
Act: Apply the new process to all production lines if successful.
This cycle ensures gradual and sustainable improvements.

Answer 21

PDCA (Plan-Do-Check-Act Cycle)

Question 22

It is crucial for business success in the Philippines. Whether using deductive or inductive reasoning, avoiding common logical fallacies, or applying problem-solving frameworks, a rational approach helps in making well-informed business decisions.

Answer 22

Logical thinking

Question 23

Entrepreneurs and managers who develop strong logical skills can better navigate challenges,
reduce risks, and seize opportunities in an evolving business landscape.