Circular Economy Business Models

This assignment delves into the concept of circular economy business models. Students analyze various models, explore their effectiveness in developing economies, and consider the influence of factors like sustainability performance on financial outcomes. The text references academic papers that discuss the evolution of these models, their impact on industries, and the role of technological advancements in promoting a circular economy.

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A SUSTAINABLE STUDY – COCA-COLA COMPANY
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Table of Contents
Introduction......................................................................................................................................2
Literature Review............................................................................................................................3
Circular Economy........................................................................................................................3
Supply chain transparency...........................................................................................................4
Product redesign to reduce environmental impact......................................................................5
Sustainable business models........................................................................................................6
Future development of different sustainable initiative to Coca-Cola Company.............................8
Government..................................................................................................................................8
Private sector...............................................................................................................................8
Social influences..........................................................................................................................9
Technological changes...............................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
Since its establishment, Coca-Cola Company continues to be the biggest company that deals with
the production, distribution, as well as marketing of non-alcoholic beverages. It offers over five
hundred brands to its consumers in more than two hundred nations globally. The company has
nineteen brands in lower or no-sugar out of its twenty-one billion-dollar brands (Gagarin 2012).
The low or no-sugar brands help individual users of the products to moderate their consumption
of added sugar contents. Besides, Coca-Cola Company management concentrates their duties in
making positive contributions to the universe. Coca-Cola Company remains to be the number
one provider of sparkling types of beverages that are ready-to-drink juices, coffees, and juice
drinks (James 2015). Therefore, the principal objective of this report is to address sustainability
study in the operations of the Coca-Cola Company.
Literature Review
Circular Economy
The circular economy as a form of sustainable initiative for an organization remains to be
the regenerative system where the resource input along with emission, waste, and energy
leakages during operations are minimizable. The minimization of such wastes is achievable by
slowing, closing, together with narrowing the material along with power loops during the
operations of a company (Esslinger 2011). Besides, in the circular economy, minimization of
such losses are achievable through a long-lasting design of services, repair, reuse, maintenance,
remanufacturing of products, refurbishing, plus recycling of raw materials and other inputs
significant to the operation of an organization. The circular economy in most cases in contrast to

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the linear economy that focuses on making, taking, disposing of the model of producing goods
and services within an organization. According to Rengondola (2015), the circular economy
within the operations of the Coca-Cola Company seems intuitive to be more sustainable much
more when compared to the current linear economic systems of service. The functions of input of
resources into operations and waste along with mission leakage out of the system tend to reduce
depletion together with pollution of the environment. In the functioning of the company, there
are different relationship types between sustainability and the circular economy. Some of these
differences comprise of conditional relation, beneficial relationship, degree relation, selective
relation, cost-benefit relations, and level relations among other differences. The adoption of a
circular economy as a sustainability strategy is essential in the operations of Coca-Cola
Company. It aids in prioritizing regenerative resources, using the wastes as the resources during
the production, designing the future operations, preserving and extending what the company
already produces. Additionally, circular economy among various companies aids in the
performance of a range of functions (Zink & Geyer 2017). The circular economy within the
Coca-Cola Company presents the best opportunity for packaging of the sector of the Coke’s
products. Failure to adopt the circular economy, the company will not be able to shape the future
of consumption of the business’s products.
Supply chain transparency
The supply chain transparency within the operations of any company remains to be the
system of people, activities, data, and resources involved in the movement of service or products
from suppliers to customers around the global markets. The transparency of supply chain
consists of ideas of showing the transformation of natural resources, raw material, as well as

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components into the finished product delivered to the consumer. Therefore, supply chain
transparency involves the practical guide that aid in defining, understanding, along with the
process of showing the quantities of company’s products within the global economy (Ford et al.,
2012). In Coca-Cola Company, supply chain transparency continues to be the cross-functional
model that includes the management of the movement of raw material into its operations. It also
involves specific aspects of the internal processing of materials into finished Coke products.
Additionally, the transparency includes the movement of finished goods out of the Coca-Cola
Company and toward the end clients. The transparency of supply chain in the operations of the
COKE Company ensures that there is the identification of global apparel stores whose branded
products are produced in factories and where managers abuse the right of workers. In Coca-Cola
Company, supply chain transparency remains to be essential in its operations because it aid in
building the trust of employees, consumers, labor advocates, and investors can send the firm
message that the apparel organization does not fear to remain accountable when rights of labor
abuses found in its supply chain. Besides, the supply chain transparency helps in asserting Coca-
Cola Company to focus on the best labor practices in its supplier factories more credible
(Ormond 2015). Through the supply chain transparency, Coca-Cola Company can focus on the
quality, safety, ethics, along with environmental impact during its production. Furthermore,
failure to adopt the supply chain transparency, the company will not be able to directly focus on
addressing the new threats as well as opportunities that affect their operations.
Product redesign to reduce environmental impact
Good product design can be essential in the reduction of the impact that the product has
on the business environment as well as the entire ecosystem. Redesigning the packaging product

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of a given company can also reduce the operational costs of the enterprise. Product redesign to
reduce environmental impact also ensures that the operations and productions of the company
comply with the set packaging regulations. The sustainability idea of product redesign allows the
manufacturers and product designers to use the design of product packaging along with its
capability to be reused, recycled, or minimized, reuse as one of the major factors they consider
when making operational decisions. The idea of redesigning products by the company through
activities such as packaging can be essential in reducing the costs of operations and improving
the company’s business supply chain (Ellahi et al., 2017). Product redesign to reduce
environmental impact makes the company have the lasting loyalty to coverage on their progress
of sustainability. The need to focus on product redesign to reduce environmental impact form the
principal objective of the Coca-Cola Company in the protection of the environment in
developing the highly efficient products and services (Biobased industries add to circular
economy 2015). The idea also allows the company to work on the solutions that are
environmentally friendly by enabling their esteemed and targeted customers to reduce their
energy usage, operational costs, emission of carbon, and negative impacts on the environment.
Various approaches can be applicable in redesigning the products to reduce environmental
impacts. Some of these approaches include the need to label the product, enhancing recyclability,
making it multifunctional, and reducing the volatile organic compounds to make the smell of the
goods to be pleasing (Chao-Ming & Tzu 2017). The failure by any company to focus on the
product redesign to reduce environmental impact makes their products to fail in meeting or
exceeding the requirements of laws, standards, regulations, and expectations of customers.

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Sustainable business models
The sustainable business model in every operation of an organization has applied to
signal the need for their activities to go beyond innovating products or services. The design helps
in changing the fundamentals of operations and on how the business makes revenue within
marketplaces. The model of sustainability in business focus on the essential resource yield of a
company, venture in the usual capital, restoration of ecology, service along with the stream of
the economy, and responsible consumption of the company’s goods and services. In most cases,
the sustainable business model enables the companies to perform different operations like
building the quality brands for sale (Andrews 2015). Therefore, Coca-Cola Company has to
focus on their operational structures, not just on their products or processes of production. The
use of sustainable business model has led to the generation of plenty of hype in the operations of
an organization. Moreover, the sustainable business model for an organization forms the
enterprise that tends to have the least negative influence on the business sector, community,
culture, or wealth. Social influence leads to the formation of business operations that endeavors
to convene the triple base level (Zhou & Li 2011). Mostly, models of sustainable operations in
business for Coca-Cola Company have the progressive environmental along with individual
policies that help in boosting operations of the company. Besides, the design aid in incorporating
principles of sustainability into each of its business decision-making processes (Stubbs 2014).
Sustainable business models are useful to Coca-Cola Company that contributes in friendly
environmental conditions or green actions by ensuring that all methods, goods, along with
activities of manufacturing effectively focus on dealing with present effects about the business
environment. The use of sustainable business model then helps the organization in maintaining

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the profit. Failure to incorporate sustainable business models by the company will lead to failure
to its operations. The businesses can also fail to learn how well its products perform with
renewable resources.
Future development of different sustainable initiative to Coca-Cola Company
Government
For every company including the Coca-Cola Company to follow sustainable initiative
during their productions, the government can pass new environmental laws that they support
during their productions. The passing of the laws will make the government contribute to the
sustainable development in every region across global business society. The government can
cooperate with other public sector organizations in the world to learn from the sustainability
experience elsewhere (Gagarin 2012). These cooperations will help in overcoming the barriers
like cost implications for local authorities that might clash with other priorities. However, to act
upon sustainable development principles, the government can work in partnership with every
branch of its operations such as provincial and territorial governments and support various
sustainable development activities of operation of companies. The government has jurisdiction in
different policy field that directly influences sustainable development. According to Sun (2015),
the governments have the strong role in fostering sustainable development across operations of
all companies. Therefore, the government should set strong laws to businesses that do not focus
on sustaining the environment during their operations by imposing huge fines on their products.

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Private sector
The private companies can adopt sustainable practices by integrating sustainable
information in their reporting cycles annually. The use of multiple frameworks that have
emerged can help the industry in aligning their operations as per the requirements of sustainable
initiatives (Lewandowski 2016). The structure used by the companies can make them have the
guide, offer tools, and indicators to measure and manage their contributions towards the
achievement of sustainable operations. All these ideas will make the private companies
contribute to environmental issues and concerns significantly. The appropriate participation will
lead to huge revenue to the private companies, as they will be able to overcome environmental
problems (Casadesus & Ricart 2014). The achievement of the sustainable ideas will help private
businesses to be profitable. The plans will provide the widest platforms to the companies
privately owned to develop their strategies leaning to the sector where they possess the
significant influence. Besides, private organizations will be able to make huge profits by
developing sustainable initiative, as they will be able to graduate past clumsy corporate social
liability plans along with incorporating the idea of the social crash into their strategies of
conducting company operations.
Social influences
As the distinct discipline, social impact aims at promoting the sustainable behavior that
benefits the environment, society, as well as individual. The social groups and individuals
customers respond to sustainable ideas by understanding what companies want and what they do
when they operate. The new behavior among the social class must remain to be having the higher

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value than the current practice. The effect of social groups and environment can change slowly
as the result of the cultural shift. It can also occur quickly in the wake of the natural disaster or
change in public policy (den Hollander et al., 2017). Therefore, social groups and individuals can
engage in the important duties in controlling both social shifts together with free strategy. The
social groups along with people’ customers can respond to sustainable initiatives of operations
by motivating people to have the reason to change in their operations. They also respond by
forming the ability that every person must have skills, confidence, and knowledge required to
change (Carter 2012). Besides, they respond by creating the opportunity to have the resources,
appropriate relationships, and environmental conditions essential for change.
Technological changes
Presence of technology changes, science, and capacity, building all companies are major
pillars of the means of developing and implementing sustainable initiatives in business. Besides,
the presence of technology is useful in developing sustainable ideas, but the challenge is
deploying the use of technology in the right way (Breunig 20130. The use of technology aids in
creating the links among the people with sustainable ideas. It connects people working on the
ground with the local knowledge of how every design labor and the financers in backing their
sustainable developments (Wenxiang & Taylor 2016). New technologies provide the means to
act smarter and more sustainable that make the companies improve their operations. Innovation
that comes with the use of technology leads to the development of sustainable ideas by having
the flexible, multidisciplinary abilities essential for responding changes in business environment.

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Conclusion
Sustainability ideas in the operations of every company continue to be the key drivers of
their innovations. The primary focus form every company in the ideas of sustaining their
operations should be the need to focus on product redesign to reduce environmental impact,
circular economy, sustainable business model, along with supply chain transparency. All these
ideas will enable the company to use adequate resources during their production, thus leading to
massive profits in global market environments. Stated preference studies have remained to have
interest for several years in the effect of sustainable initiative provided to respondents on their
stated values. In this article, the use of Coca-Cola Company is essential in devising the
alternative presentation of data on the importance of the sustainable initiative. The need to have
the appropriate way for the product redesign to reduce environmental impact is essential in the
field of sustainable practices. These strategies allow the companies to undertake major strategies
for eco-designing of products to reduce the negative impact of its products to the environment.
Some of the strategies taken by the sustainable ideas comprise of the development of recycled
materials such as cardboard, plastics, cotton, and polyester among others for packaging of their
products. The company can use the strategy of listing materials that are renewable during its
productions. The company can also involve the use of innovative choice processes to reduce
consumption of water or pollution of water bodies during the manufacturing of products.
Additionally, the company can focus on the need to replace the use of PVC on its products.
Appropriate designing of company’s products can be essential in the reduction of the influence
that the product has on the business environment along with the entire ecosystem.

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The manner that companies take to produce, use, and dispose of goods has for long
continue to be unsustainable and has led to rapid depletion of the natural resources of the planets.
Therefore, the need to redesigning the packaging product of a given company can aid in reducing
the operational costs of an organization. Consequently, redesigning of product to minimize
environmental impact also ensures that the operations, as well as productions of the company,
comply with the required regulations for packaging of goods. The need to focus on product
redesign to reduce environmental influence remains to be the fundamental aim of every company
in the protection of the environment in developing the highly efficient products. The idea also
allows the company to work on the solutions that are environmentally friendly by enabling their
loyal customers to reduce their use of energy, costs of operations, emission of carbon, together
with negative impacts on the environment. Therefore, sustainable strategies are essential in
achieving the ideal working environment that leads to massive revenue to a company.

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