Back to Topic 6.8 — Circular business models
6.8.1BM25 flashcards

What is a circular business model?

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Card 1 of 256.8.1
6.8.1
Question

Name all FIVE circular business models

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All 25 Flashcards — What is a circular business model?

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Card 1concept

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

Card 2concept

Question

Linear = take, make, dispose. Circular = reuse, repair, ___

Answer

Recycle — sustainable, keeping resources in the loop.

💡 Hint

Recycle

Card 3concept

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

Card 4concept

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

Card 5definition

Question

Linear model = ___, ___, ___

Answer

Take, make, dispose — resources used once then thrown away. Wasteful.

💡 Hint

Take-make-dispose

Card 6concept

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

Card 7definition

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

Card 8definition

Question

Circular supply model = using ___ inputs

Answer

Renewable, recyclable or biodegradable inputs in a continuous loop.

💡 Hint

Renewable/recyclable inputs

Card 9concept

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

Card 10concept

Question

Five models: circular supply, resource recovery, ___, ___, PSS

Answer

Product life extension, sharing.

💡 Hint

PLE + sharing

Card 11concept

Question

Linear: extract → produce → use → ___. Circular: design → produce → use → ___ → use again

Answer

Throw away; repair/recycle.

💡 Hint

Dispose vs recycle

Card 12concept

Question

Circular models future-proof because ___

Answer

Resources become scarcer — businesses designed for reuse are better positioned.

💡 Hint

Scarcity protection

Card 13definition

Question

Resource recovery model = recovering ___ from waste

Answer

Useful resources or energy from discarded products — waste becomes input.

💡 Hint

Resources from waste

Card 14concept

Question

'Keep materials in use' means ___

Answer

Repair, refurbish, reuse, recycle — extending the life of materials.

💡 Hint

Repair + reuse + recycle

Card 15concept

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

Card 16concept

Question

Share and lease models: customers pay for ___, not ___

Answer

Use; ownership — the company retains the product.

💡 Hint

Use, not ownership

Card 17concept

Question

Benefits: lower costs, reputation, ___. Challenges: investment, ___

Answer

Future-proofing; complexity.

💡 Hint

Future-proofing; complexity

Card 18example

Question

Circular example: furniture company designs chairs that can be ___

Answer

Disassembled, with parts recycled into new furniture instead of landfill.

💡 Hint

Disassembled + recycled

Card 19definition

Question

Product life extension = extending useful life through ___

Answer

Repair, refurbishment, remanufacturing, repurposing — products stay in use longer.

💡 Hint

Repair + refurbish + repurpose

Card 20concept

Question

Customers may not value sustainability enough to ___

Answer

Pay more — willingness to pay a premium varies by market.

💡 Hint

Pay more

Card 21example

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

Card 22concept

Question

Quick: Sharing model = multiple users share ___

Answer

Access to one product — maximising its use.

💡 Hint

One product

Card 23concept

Question

The goal of circular models is to eliminate ___ and keep materials ___

Answer

Waste; cycling through the economy.

💡 Hint

No waste + cycling

Card 24concept

Question

Circular models link to ___ and ___

Answer

Cradle to cradle (5.3.4) and CSR — sustainability principles.

💡 Hint

C2C + CSR

Card 25example

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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