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Flip to reveal answersName all FIVE circular business models
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All 25 Flashcards — Circular business models
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Question
Name all FIVE circular business models
Answer
Circular supply, Resource recovery, Product life extension, Sharing, Product service system (PSS).
💡 Hint
CS-RR-PLE-S-PSS
Question
Linear = take, make, dispose. Circular = reuse, repair, ___
Answer
Recycle — sustainable, keeping resources in the loop.
💡 Hint
Recycle
Question
Two benefits of circular models?
Answer
Reduces waste/environmental damage; lower long-term costs; attracts eco-conscious customers; builds reputation; future-proofs.
💡 Hint
Waste + costs + reputation
Question
Five key principles of circular models?
Answer
Design out waste, keep materials in use, regenerate natural systems, share/lease models, use renewable energy/materials.
💡 Hint
Design, keep, regenerate, share, renew
Question
Linear model = ___, ___, ___
Answer
Take, make, dispose — resources used once then thrown away. Wasteful.
💡 Hint
Take-make-dispose
Question
'Design out waste' means ___
Answer
Products designed so nothing is wasted — every part has a use or can be recycled.
💡 Hint
Zero waste by design
Question
Circular model keeps resources ___
Answer
In use for as long as possible through reuse, repair, recycling, regeneration. No waste.
💡 Hint
In use → no waste
Question
Circular supply model = using ___ inputs
Answer
Renewable, recyclable or biodegradable inputs in a continuous loop.
💡 Hint
Renewable/recyclable inputs
Question
Two challenges of circular models?
Answer
High initial investment; new supply chains needed; customers may not pay more; complex to implement.
💡 Hint
Investment + supply chains + complexity
Question
Five models: circular supply, resource recovery, ___, ___, PSS
Answer
Product life extension, sharing.
💡 Hint
PLE + sharing
Question
Linear: extract → produce → use → ___. Circular: design → produce → use → ___ → use again
Answer
Throw away; repair/recycle.
💡 Hint
Dispose vs recycle
Question
Circular models future-proof because ___
Answer
Resources become scarcer — businesses designed for reuse are better positioned.
💡 Hint
Scarcity protection
Question
Resource recovery model = recovering ___ from waste
Answer
Useful resources or energy from discarded products — waste becomes input.
💡 Hint
Resources from waste
Question
'Keep materials in use' means ___
Answer
Repair, refurbish, reuse, recycle — extending the life of materials.
💡 Hint
Repair + reuse + recycle
Question
Know when each model DOES and ___ apply
Answer
Does NOT — exam may ask why a model is unsuitable for a specific situation.
💡 Hint
Does not
Question
Share and lease models: customers pay for ___, not ___
Answer
Use; ownership — the company retains the product.
💡 Hint
Use, not ownership
Question
Benefits: lower costs, reputation, ___. Challenges: investment, ___
Answer
Future-proofing; complexity.
💡 Hint
Future-proofing; complexity
Question
Circular example: furniture company designs chairs that can be ___
Answer
Disassembled, with parts recycled into new furniture instead of landfill.
💡 Hint
Disassembled + recycled
Question
Product life extension = extending useful life through ___
Answer
Repair, refurbishment, remanufacturing, repurposing — products stay in use longer.
💡 Hint
Repair + refurbish + repurpose
Question
Customers may not value sustainability enough to ___
Answer
Pay more — willingness to pay a premium varies by market.
💡 Hint
Pay more
Question
PSS model example: Rolls-Royce 'power by the hour'?
Answer
Airlines pay for engine flight hours, not buying engines. RR maintains them — selling the function, not the product.
💡 Hint
Sell function, not product
Question
Quick: Sharing model = multiple users share ___
Answer
Access to one product — maximising its use.
💡 Hint
One product
Question
The goal of circular models is to eliminate ___ and keep materials ___
Answer
Waste; cycling through the economy.
💡 Hint
No waste + cycling
Question
Circular models link to ___ and ___
Answer
Cradle to cradle (5.3.4) and CSR — sustainability principles.
💡 Hint
C2C + CSR
Question
Sharing model: why NOT suitable for tyres? (May 2025 exam)
Answer
Tyres wear out with use (safety risk), are size-specific, can't be meaningfully shared between users.
💡 Hint
Safety + size-specific + wear
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Circular business models
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