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NotesBusiness ManagementTopic 6.8
Unit 6 · Business Management Toolkit · Topic 6.8

IB Business Management — Circular business models

Topic 6.8 examines how businesses adopt circular economy principles to reduce waste, extend product lifecycles, and create sustainable value chains. Students evaluate the business case for circularity and compare linear and circular models in terms of environmental and economic outcomes.

Exam technique guidePractice questions

Key concepts in Circular business models

Key Idea: Topic 6.8 examines how businesses adopt circular economy principles to reduce waste, extend product lifecycles, and create sustainable value chains. Students evaluate the business case for circularity and compare linear and circular models in terms of environmental and economic outcomes.

Key Exam Takeaways

  • Linear = take, make, dispose (wasteful). Circular = reuse, repair, recycle (sustainable)
  • FIVE named models: circular supply, resource recovery, product life extension, sharing, product service system
  • Circular supply = renewable/recyclable inputs in a loop
  • Resource recovery = extracting useful materials from waste
  • Product life extension = repair, refurbish, repurpose to extend use
  • Sharing = multiple users share one product (not always suitable!)
  • Product service system = sell the service/function, not the product
  • Know when each model DOES and DOES NOT apply
  • Benefits: lower costs, better reputation, future-proofing. Challenges: high investment, complexity
  • Sustainability = meeting today's needs without harming future generations
  • Strategies: energy efficiency, waste reduction, digital delivery, ethical sourcing, green packaging
  • CSR = taking responsibility for social and environmental impact
  • Business case: saves costs, attracts customers, meets regulations, builds reputation
  • Exam questions often ask you to evaluate sustainability vs short-term profits

What you'll learn in Topic 6.8

  • 6.8.1 What is a circular business model?
  • 6.8.2 Sustainability strategies in business

Exam relevance

Business Management is assessed through Paper 1 (case study) and Paper 2 (structured questions). Expect to apply these concepts to business scenarios using appropriate tools and terminology.

Suggested study order: Read the notes for each sub-topic below → test yourself with flashcards → attempt practice questions → review exam technique.

Study resources — 6.8 Circular business models

6.8.1

What is a circular business model?

Notes
6.8.2

Sustainability strategies in business

Notes

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Topic 6.8 Circular business models forms a core part of Unit 6: Business Management Toolkit in IB Business Management. Mastering these concepts will strengthen your understanding of connected topics across the syllabus and prepare you for exam questions that require analysis, evaluation, and real-world application.

Frequently asked questions

What does Topic 6.8 Circular business models cover in IB Business Management?
Topic 6.8 covers circular business models as part of the IB BM syllabus. Students learn key business concepts, tools, and frameworks that are assessed in Paper 1 (case study) and Paper 2 (structured questions).
How should I revise Circular business models for IB Business Management exams?
Start with the micro-topic notes to build understanding, then use flashcards for key terms and formulas. Practise applying concepts to case study scenarios and review how marks are allocated in IB mark schemes.
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