Practice Flashcards
Two benefits of circular models?
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All Flashcards in Topic 6.8
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6.8.125 cards
Two benefits of circular models?
Reduces waste/environmental damage; lower long-term costs; attracts eco-conscious customers; builds reputation; future-proofs.
Waste + costs + reputation
Linear model = ___, ___, ___
Take, make, dispose — resources used once then thrown away. Wasteful.
Take-make-dispose
Linear = take, make, dispose. Circular = reuse, repair, ___
Recycle — sustainable, keeping resources in the loop.
Recycle
Five key principles of circular models?
Design out waste, keep materials in use, regenerate natural systems, share/lease models, use renewable energy/materials.
Design, keep, regenerate, share, renew
Name all FIVE circular business models
Circular supply, Resource recovery, Product life extension, Sharing, Product service system (PSS).
CS-RR-PLE-S-PSS
Two challenges of circular models?
High initial investment; new supply chains needed; customers may not pay more; complex to implement.
Investment + supply chains + complexity
Circular supply model = using ___ inputs
Renewable, recyclable or biodegradable inputs in a continuous loop.
Renewable/recyclable inputs
'Design out waste' means ___
Products designed so nothing is wasted — every part has a use or can be recycled.
Zero waste by design
Five models: circular supply, resource recovery, ___, ___, PSS
Product life extension, sharing.
PLE + sharing
Circular model keeps resources ___
In use for as long as possible through reuse, repair, recycling, regeneration. No waste.
In use → no waste
Resource recovery model = recovering ___ from waste
Useful resources or energy from discarded products — waste becomes input.
Resources from waste
Linear: extract → produce → use → ___. Circular: design → produce → use → ___ → use again
Throw away; repair/recycle.
Dispose vs recycle
'Keep materials in use' means ___
Repair, refurbish, reuse, recycle — extending the life of materials.
Repair + reuse + recycle
Circular models future-proof because ___
Resources become scarcer — businesses designed for reuse are better positioned.
Scarcity protection
Know when each model DOES and ___ apply
Does NOT — exam may ask why a model is unsuitable for a specific situation.
Does not
Benefits: lower costs, reputation, ___. Challenges: investment, ___
Future-proofing; complexity.
Future-proofing; complexity
Circular example: furniture company designs chairs that can be ___
Disassembled, with parts recycled into new furniture instead of landfill.
Disassembled + recycled
Customers may not value sustainability enough to ___
Pay more — willingness to pay a premium varies by market.
Pay more
Product life extension = extending useful life through ___
Repair, refurbishment, remanufacturing, repurposing — products stay in use longer.
Repair + refurbish + repurpose
Share and lease models: customers pay for ___, not ___
Use; ownership — the company retains the product.
Use, not ownership
Sharing model: why NOT suitable for tyres? (May 2025 exam)
Tyres wear out with use (safety risk), are size-specific, can't be meaningfully shared between users.
Safety + size-specific + wear
PSS model example: Rolls-Royce 'power by the hour'?
Airlines pay for engine flight hours, not buying engines. RR maintains them — selling the function, not the product.
Sell function, not product
The goal of circular models is to eliminate ___ and keep materials ___
Waste; cycling through the economy.
No waste + cycling
Quick: Sharing model = multiple users share ___
Access to one product — maximising its use.
One product
Circular models link to ___ and ___
Cradle to cradle (5.3.4) and CSR — sustainability principles.
C2C + CSR
6.8.225 cards
What is sustainability in business?
Meeting today's needs without damaging the ability of future generations to meet theirs — long-term responsibility.
Today without harming tomorrow
Name four practical sustainability strategies
Energy efficiency, waste reduction, digital delivery, ethical sourcing, sustainable packaging, carbon offsetting, employee engagement.
Energy, waste, digital, ethical
What is CSR?
Corporate Social Responsibility — a business takes responsibility for its impact on society and the environment.
Responsible for social/environmental impact
Name four business benefits of sustainability
Attracts customers, reduces costs (long-term), meets regulations, attracts talent, improves investor appeal, builds reputation.
Customers, costs, regulations, talent
Sustainability = meeting today's needs without harming ___
Future generations.
Future generations
Strategies: energy efficiency, waste reduction, digital delivery, ___
Ethical sourcing, green packaging, carbon offsetting.
Ethical + green + carbon
ESG investing is growing — ESG stands for ___
Environmental, Social, Governance — investors increasingly value responsible businesses.
Environmental + Social + Governance
University sustainability example?
Digital learning materials, solar panels, reduced single-use plastics, local ethical food suppliers.
Digital + solar + plastics + ethical
CSR covers: environmental responsibility, ethical labour, ___, ___
Community involvement, fair trading.
Community + fair trading
Sustainability covers three areas:
Environmental, social and economic responsibility — all for the long term.
Environmental + social + economic
CSR = taking responsibility for social and ___ impact
Environmental impact — closely linked to sustainability.
Environmental
Ethical sourcing means ___
Buying from fair trade or environmentally responsible suppliers.
Fair trade suppliers
Sustainability isn't just 'nice to have' — it makes ___
Good business sense — short-term costs often pay for themselves long-term.
Business sense
Argument against CSR: increases ___ and reduces ___
Costs; short-term profits.
Costs + profits
Sustainability means operating in a way that is ___
Environmentally, socially and economically responsible — not just green.
Responsible across all three areas
Business case: saves costs, attracts customers, meets ___, builds ___
Regulations; reputation.
Regulations + reputation
Carbon offsetting means ___
Investing in projects that compensate for emissions — e.g. tree planting.
Compensate emissions
Argument for CSR: boosts ___, ___ and long-term profitability
Reputation; customer loyalty.
Reputation + loyalty
Energy efficiency and waste reduction save ___ long-term
Money — lower bills and material costs over time.
Money
The classic sustainability definition mentions ___
Future generations — the key concept is intergenerational fairness.
Future generations
Quick: Exam questions often ask you to evaluate sustainability vs ___
Short-term profits — argue both sides.
Short-term profits
For CSR exam questions: argue both ___ costs AND ___ benefits
Financial; reputational/ethical — balanced evaluation is key.
Costs vs reputation/ethics
Employee engagement in sustainability means ___
Training staff and involving them in sustainability goals — making it part of the culture.
Train + involve staff
Sustainability in business isn't just about the environment — also ___
Social responsibility (workers, communities) and economic viability (staying profitable long-term).
Social + economic
Employees prefer to work for ___ companies
Responsible — sustainability helps attract and retain talent.
Responsible
Topic 6.8 study notes
Full notes & explanations for Circular business models
BM exam skills
Paper structures, command terms & tips
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