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NotesBusiness Management HLTopic 5.3Cradle to cradle design and manufacturing
Back to Business Management HL Topics
5.3.411 min read

Cradle to cradle design and manufacturing (Business Management HL)

IB Business Management · Unit 5

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Contents

  1. 1From cradle to grave, to cradle to cradle
  2. 2The features of cradle to cradle
  3. 3What cradle to cradle gains
  4. 4What it costs, and whether it pays
  5. 5Exam-style question
What Mill Lane throws away: At 6 a.m. the night's baking is done and the vans have gone. Priti looks in the skip behind the Mill Lane bakehouse.

What is in the skip

  • Crusts and dough scraps
  • Burnt loaves
  • About sixty empty paper flour sacks a week
  • The bread even Second Helpings could not use

A lorry takes it all to landfill. In the shops, every loaf goes out in a paper bag with a little plastic window, and most of those bags end up in a bin by the evening.

That is the usual life of a product: take materials from the earth, make something, use it, throw it away. It is called cradle to grave, because every material's life ends in the ground.

Cradle to cradle asks a different question before anything is made: where will each material go next? The product is designed so that, when it is no longer needed, its materials become the starting point of something new. There is no grave, only another cradle.

Cradle-to-cradle design and manufacturing: Designing products, and the way they are made, so that when they are no longer needed every material is safely returned to nature or used again to make new products, instead of becoming waste.

The idea was made famous by an architect, William McDonough, and a chemist, Michael Braungart, in a 2002 book. Their motto is waste equals food: in nature a fallen leaf feeds the soil, and nothing is wasted. They sort every material into one of two loops.

The nature loop (biological cycle)

  • Materials that can rot safely back into the soil
  • At Mill Lane: crusts, dough scraps, unsold bread, a paper bag with no plastic in it
  • They are composted and feed the soil that grows the next crop of wheat

The making loop (technical cycle)

  • Materials such as metal and plastic that should never go into the soil
  • At Mill Lane: the plastic bread crates, the steel racks, refillable flour bins
  • They are collected and used again, or melted and made into the same product again
Less waste is not the same as no waste: Lean production (5.3.1) cuts waste inside the bakehouse: fewer burnt loaves, less flour in store. Cradle to cradle goes further: whatever is left over is designed to be someone else's raw material.
Recycling that keeps the quality: Ordinary recycling is not enough either if the material comes back as something worse, such as a plastic bag turned into a park bench that is thrown away later (downcycling). In cradle to cradle the material keeps its quality, loop after loop.

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Lena and Priti decide to rebuild Mill Lane around cradle to cradle. They take each feature in turn and ask what it would mean in their own bakehouse.

FeatureWhat it meansAt Mill Lane
Safe materialsEverything used is safe for people and for nature, so it can go back into a loopThe plastic window goes; the bag is plain paper printed with plant-based ink, so it can be composted
Waste becomes an inputWhat is left over from one product is the raw material for anotherCrusts, scraps and unwanted bread go to a composting site on a Valley Grain farm; the compost feeds the wheat fields
Materials keep going roundMaterials are used again and again, in loops, at the same qualityFlour comes in refillable bins that ride back to Valley Grain on the van, instead of sixty paper sacks a week
Renewable energyAll the energy used comes from renewable sources such as the sun and the windThe ovens run on a 100% renewable electricity tariff
Care for water and peopleWater is used carefully, and the people who make the product are treated fairlyMixers are cleaned with less water; the bakers are paid fair wages and Valley Grain's farmers a fair price
It is decided at the design stage: Every change above starts before anything is baked or bought. The bag is designed with no plastic in it; the flour is ordered in bins, not sacks.

The test for each material is one question: where does it go next? If the answer is the bin, the design is changed until the answer is a loop.

Put together, the features describe a business that leaves nothing behind for the next generation to clear up. In one word, it is more sustainable (meeting today's needs without using up what future generations will need).

Feature or benefit?: A feature says what cradle to cradle is: waste becomes an input, all the energy is renewable. A benefit says what the business gains: lower costs, more customers.

'Customers like it' is a benefit, not a feature. 'It costs more' is not a feature either, unless it is tied to the design work of making materials reusable.

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Six months later: The skip at Mill Lane is now collected every other week, and the lorry that comes on Tuesdays belongs to Valley Grain.

Lena's Bakery

  • A regular posts a photo of the new all-paper bag: no plastic, printed with plant ink.

Goldcrust plc

  • Down the road, Goldcrust plc still sells its loaves in plastic bags.

What cradle to cradle gains for the business

1

Lower running costs

Less goes to landfill, so less is paid to take it away. The Mill Lane skip cost $150 a week and now costs $75: 75 × 52 = $3,900 a year saved.

2

Protection from energy prices

Renewable electricity bought at a price fixed for five years means the ovens' power bill cannot jump when gas and oil prices swing.

3

Less waste, more efficiency

The same flour bins are used hundreds of times; nothing is paid for twice, once to buy and once to throw away. Using less water cuts the water bill too.

4

Customers who care

Some customers choose the business whose bread comes without plastic and whose waste feeds a local farm (eco-conscious customers), and they come back. That is extra sales revenue.

5

Standing out from rivals

Goldcrust uses plastic bags. The difference gives Lena's customers a reason to choose her loaves over a cheaper national chain (differentiation).

6

Reputation and less pressure

A smaller harm to the environment makes the business look socially responsible, a better brand image, and eases pressure from customers and campaign groups. Fair wages keep the bakers motivated and in their jobs.

Which benefit matters most depends on the business. For a bakery with a big energy bill, the fixed price. For one competing with a national chain, standing out. Pick the benefit the case gives you evidence for, then use that evidence.

Benefit to whom?: 'It is good for the environment' is a benefit to the planet. A question about benefits for a business wants what the business gains from that: lower costs, more customers, a better reputation.

Start from the environment if you like, but finish at the business.

None of this is free. Before the first new bag arrives, Lena has paid $4,000 for refillable flour bins and hours of Priti's time working out where every material goes. Then, each year:

The change at Mill LaneEach yearWhere the number comes from
All-paper bags$3,744 more1,200 bags a day × 312 days = 374,400 bags, at $0.05 instead of $0.04
Renewable electricity tariff$1,920 more, for now$2,160 a month, fixed for five years, against $2,000 on the standard tariff today
Skip every other week$3,900 saved$75 a week instead of $150, × 52 weeks
Overall, before any extra sales$1,764 more$3,744 + $1,920 − $3,900
Does it pay?: Each loaf brings in $2.10 over its ingredients. Three more loaves a day, 3 × $2.10 × 312 = $1,965.60 a year, cover the extra $1,764.

And if the standard electricity price rises by more than 8%, above $2,160 a month, the fixed tariff starts saving money. Whether it pays depends on customers and on energy prices, not on the bakehouse alone.

What makes cradle to cradle hard

  • High costs up front. Products and processes must be redesigned and new materials found before anything is saved.
  • New suppliers. A bag with no plastic, or ink that can be composted, must come from a supplier who can make it.
  • Getting materials back. A loop only closes if the crates, bins and scraps actually come back. Once a customer puts the paper bag in the general bin, the business cannot control where it goes.
  • Customers who will not pay. Many say they want greener products but choose the cheaper loaf at the counter.
  • Half measures are noticed. A business that claims to be greener than it is, such as one green bakehouse among several that are not, is accused of greenwashing and loses the reputation it wanted.
  • A slow payback. The costs come now; the savings and the loyal customers build up over years.
When it makes sense: Cradle to cradle suits a business whose customers value it, which can control where its materials go, and whose owners can wait for the payback.

Why Lena's Bakery fits

  • Loyal local customers
  • A supplier on the doorstep that can take the scraps back
  • Owners who run it for the long term

A bakery selling on price alone would find it much harder.

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How this comes up: A short case describes a business that follows cradle-to-cradle principles: its energy, its waste, its water, its materials, its wages.

Then the questions

  • State (2 marks). State two features of cradle-to-cradle design and manufacturing.
  • Explain (4 marks). Explain two benefits for that business of following cradle-to-cradle principles.
  • Weigh it up. The same case can go on to ask whether going fully cradle to cradle is worth the cost.

The four-mark pattern

  • Name the first benefit. Lower long-term running costs, for example less paid to take waste away.
  • Show it in the case. Use the case's own practice and number: the skip now costs $75 a week, not $150.
  • Name a second, different benefit. Customers who care about the environment, standing out from rivals, or a better reputation.
  • Show it in the case. Name the rival or the detail: Goldcrust still uses plastic bags.
Three traps: Two benefits that are one. 'Lower waste costs' and 'saves money on bins' are the same benefit. The second must be different in kind.

The planet, not the business. 'Good for the environment' needs to become what the business gains.

No case, no second mark. Every benefit needs a name, a practice or a number from the case.
IB-style questionExplain[4 marks]

Explain two benefits for Lena's Bakery Ltd of following cradle-to-cradle design and manufacturing principles.

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