Transition Towards a Circular Economy of Philips

Running head: TRANSITION TOWARDS A CIRCULAR ECONOMY
TRANSITION TOWARDS A CIRCULAR ECONOMY
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TRANSITION TOWARDS A CIRCULAR ECONOMY
EXECUTIVE SUMMARY:
The assignment aims to report on the transition towards circular economy of Philips. The paper
introduces with the description of a circular economy along with its seven pillars. In the
theoretical perspective the key role of circular chain supply and the benefits of circular economy
are been discussed. On the other hand the practical perspective focuses on how Philips operates
its business in terms of circular economy. Some of its products are been discussed on how they
are working towards achieving circular economy. The description of working towards the
circular economy of Philips is also discussed with the source of a famous business magazine.
Lastly, the description of how the products of Philips have social, economic and environmental
benefits are been discussed.

TRANSITION TOWARDS A CIRCULAR ECONOMY
Table of Contents
INTRODUCTION...........................................................................................................................4
DESCRIPTION OF THE ORGANISATION.................................................................................4
THEORITICAL ASPECTS.............................................................................................................4
CONCEPTS AND CHARACTERISTICS..................................................................................4
DRIVERS OF CIRCULAR ECONOMY........................................................................................5
ROLE OF CIRCULAR SUPPLY CHAIN..................................................................................7
PRACTICAL PERSPECTIVE........................................................................................................7
COMPANY’S BUSINESS MODEL...........................................................................................8
BENEFITS ACHIEVED...........................................................................................................11
REFERENCE LIST.......................................................................................................................12

TRANSITION TOWARDS A CIRCULAR ECONOMY
INTRODUCTION
In a circular economic system trade of products and services takes placed in closed loops. It is
also characterized as an economy which has regenerated design which aims to retain value as
much as possible from the products, materials and parts. The aim of this kind of economy is to
create a system of products which allows for the long life, recycling of the products and optimal
reuse of materials. In this type of economy toxic substances are eliminated and the residual
streams are again used as a resource. Therefore, the goal of circular economy is to decouple
economic growth and focussing on retention of value.
DESCRIPTION OF THE ORGANISATION
Koninklijke Philips N.V. is a Dutch multinational company whose headquarters is
located in Amsterdam. It is currently focused in the area of healthcare. The three main divisions
of Philips are Philips Consumer Lifestyle which deals in domestic appliance and personal care,
Philips circular lighting and also Philips Healthcare(Philips 2018). Philips is also considered to
be one of the largest manufacturer of lighting in the world.
THEORITICAL ASPECTS
CONCEPTS AND CHARACTERISTICS
A circular economy is a kind of economy where resources are used as long to extract the
maximum value as long as possible from the resources and then recover, regenerate products at
end of service life (Lacy, Rutqvist, 2016). This kind of economy is a renewal system in which
leakage of energy, emission and waste can be minimised by closing, slowing and narrowing