Business and Global Society: Circular Economy Analysis Report

This report delves into the critical importance of the circular economy within the context of business and global society. It highlights the circular economy's key features, benefits, and potential drawbacks, emphasizing the role of government policies in fostering its development and minimizing resource wastage. The report discusses investment opportunities, the significance of cultural integrity, and the increasing interdependence among partners in accelerating the transition from a linear to a circular economic model. It also explores the risk-return profile of the circular economy, contrasting it with traditional economic models. The report includes case studies of companies like Winnow, Schneider Electric, and others, showcasing how they are implementing circular economy principles. It concludes by summarizing the benefits and challenges associated with this emerging economic concept and the need for self-resilience and attentiveness from all stakeholders to maximize its economic advantages.

Running head: BUSINESS AND GLOBAL SOCIETY
Business and Global Society
Name of the Student
Name of the University
Author Note

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Executive Summary
The paper is aimed at discussing the importance of the circular economy highlighting its key
features and drawbacks. The paper tries to acknowledge the role of the government to develop a
circular economy lowering the wastage of the economic resources. The government must be
observant in developing a key policy to augment the economic progress. The openness coupled
with cultural integrity is the driving force for the movement from the liner economic system to
the circular economic system. The growing interdependency between the partners speeds up the
development process of the circular economy.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Changing strategic plan of Netflix.............................................................................................3
Conclusion.......................................................................................................................................5
Reference list...................................................................................................................................6

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Introduction
On the account of growing change in the economic structure, the circular economy has
achieved immense importance in recent years. Circular economy promotes a strategy to diminish
the cost related to the exploitation of the natural resources and energy products. The abrupt
consumption of the economic factors generates considerable amount of waste disposal for the
economy. This waste disposal is not even bio-degradable in nature. Therefore, it causes
detrimental impact on the ecological balance of the country (Lewandowski, 2016). Disruptive
technology using for the production of renewable energy and telecommunication sector raises
concern for the circular economy. In the next section, the paper has highlighted the opportunities,
benefits and probable policies to enhance the growth of the circular economy.
Discussion
Opportunities of investment in circular economy
The objective of the circular economy is to control the growing price fluctuation in the
commodity market. The continuous change in the market price and demand for the product has
raised the production cost as well as purchasing cost of the commodities. Every entity in the
circular economy plays an integral role to circulate the economic sources from one factor t
another factor. This exchange procedure is happened through commodity and service. The
monetary value associated with the exchange medium measure the opportunity cost of the
circular economy. It has been observed that circular economy diminishes the cost of energy
production. The consumption of non-renewable energy can be controlled through the adoption of
the circular economy. Cost of non-renewable energy is another important dimension to
determine the importance of the circular economy. The circular economy is developed with the

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aim of managing risk and economic issues on the face of strong competition in the global
economy. These strategies address the strongest aspects of the circular economy. It eliminates
the waste at maximum level by the means of advanced product design, system infrastructure and
business plans. The design is made focusing the durability of the recyclable products. The
economy shifts from the linear supply chain to the circular supply chain. Product is used as
service under the circular economy, whereas, disposable product is the service of the linear
supply chain system. It shifts focus from the waste management to resource recovery. In this
way, every resource is finally dumped into the landfill. This economy significantly reduces the
negative aspects of the economic development on the environment.
A startup company named Winnow has created a smart meter system that can analyze the
trash. These meters have the flexibility to identify the food that gets thrown away and then
estimating ways to reduce them, when installed in commercial kitchen. About one-fifth of food
gets wasted in some kitchens. More than half of total food used to get thrown in some kitchen.
Winnow has effectively lowered the level of waste generated in kitchens across forty economies.
It calculates the value of food that is dumped in dustbins and to manage such costs. Food wastes
are cut in half that has positively affected the customers by saving over 30 million dollars every
year in annual food costs. It has adequately prevented meals from going into the waste section
which has lowered the waste level and saved money of the people. Food costs has decreased by
2-8 percentage. Winnow used the approaches of machine learning and artificial intelligence to
save tonnes of food. 7.4 million dollars has been raised by Circularity Capital, and existing
backers D-Ax and Mustard Seed to fund the software in multiple countries. Provision of software
application is cost effective both for consumers and suppliers that is easy to finance. It is creating

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an autonomous vehicle that can manage waste effectively, which is financed by several investors
and retained earnings.
Schneider electric has used effective energy management tools such as recyclable
materials and contents in the products. It provides electrical equipment by introducing leases and
take-back schemes in its supply-chain. These circular activities has saved more than 10,000
metric tons which has helped them for further financing. The Cambrian Innovation uses EcoVolt
technologies that manages waste water with the added provision of bio-gas that generates clean
energy. This has saved more than 300 million litres of waste water. TriCiclos has built recycling
stations that has saved over 140,000 metric tons of carbon emissions. These firms are financed
by several agencies who are related in sustainable management programs. Another way to
finance these firms are from borrowings, although most of the funding is provided from equity of
its share holders.
Difference about the risk-return profile: As per the study, the circular economy holds more
risk-return profile compared to the traditional economy. The unconventional approach of the
circular economy triggers a serious challenge to the entities associated with the circular
economy. The small and medium sector enterprises are subject to the higher risk compared to the
large scale organizations. Risk-return profile of the asset is the key determinant of the success of
the company. Since the 1970s, the policymakers have been trying to for an alternative economic
framework between the market and firms to minimize the transaction cost. However, this
unconventional approach face risks related to the market imperfection. It has been observed that
market operators are often unable to adopt the conventional approach due to self-imposed
impediments (Zink & Geyer, 2017). Lack of knowledge triggers a serious challenge to the
development of circular economy.

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Benefits about the risk-return profile in the circular economy: The expected benefits of the
risk- return profile is associated with the mitigation of non-toxic elements. This situation results
in the development of the carbon-neutrality program. This will consequently control the
deterioration of the environmental resources. It will improve the ecological condition of the
country. It will produce a collective benefit which is higher than the summation of the individual
benefits. The cradle –to- cradle approach promotes the consumption of renewable energy. It
mitigates the disruption of toxic waste through innovation of smart business model. It offers new
vision for the energy usage, value creation coupled with entrepreneurship (Ghisellini, Cialani &
Ulgiati, 2016). Over utilization of the economic resources, like, land and labor will be limited. In
terms of the recent study, new organizations hold considerable amount of benefits related to the
asset-specific asset investment.
Policy to augment investment in circular economy
The governmental policies should support the collaborative movement of the small and
medium sector enterprises. It will ameliorate the decision-making process associate to the
companies and contingencies (Korhonen, Honkasalo & Seppälä, 2018). The policymakers will
be able to predict better outcome considering all the available uncertainties related to the work.
The government must acknowledge the consumer choice and preferences. The incidence of
oversupply, financial loss of individual companies in the partnership business needs to be
overhauled by the government. The network structure of the government should be faster and
better in transforming the ownership between the business entities (Geissdoerfer et al., 2017).
The government should build the pillars for the inter-organizational structure where network
members will not be embroiled into the unnecessary conflicts. Here, Participant-Government
Networks, Lead Organization-Governed Network and Network Administrative Organizations are

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considered as most approaching platform to develop an effective and efficient government policy
(Murray, Skene & Haynes, 2017). The government policy should follow a strong hierarchy
structure. Though, the policies can be different in the forms of administrative control, contract
laws and incentive intensity. Finding the appropriate partner in the business strategy is another
important function of the governmental policy. In this way, the circular economy will develop a
significant relationship between culture, strategy and human.
Conclusion
On a concluding note, the paper asserts that circular economy is the emerging concept.
This allows the economy to develop an integrated relationship between the society, environment
and economy. The economic development will likely to achieve sustainability through the
appropriate formation of the network infrastructure. This proposes a well-functioning pattern of
the economic progress. Several numbers of benefits can be achieved through the economic
development. The wastage of resource through the development of advanced model design is
considered as a key outcome of the circular economy. The economic entities need involved in the
circular economy needs to be self-resilient and attentive in order to derive the economic benefits
of the economy.

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Reference List
Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2017). The Circular Economy–A
new sustainability paradigm?. Journal of cleaner production, 143, 757-768.
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected
transition to a balanced interplay of environmental and economic systems. Journal of
Cleaner production, 114, 11-32.
Korhonen, J., Honkasalo, A., & Seppälä, J. (2018). Circular economy: the concept and its
limitations. Ecological economics, 143, 37-46.
Lewandowski, M. (2016). Designing the business models for circular economy—Towards the
conceptual framework. Sustainability, 8(1), 43.
Murray, A., Skene, K., & Haynes, K. (2017). The circular economy: an interdisciplinary
exploration of the concept and application in a global context. Journal of business
ethics, 140(3), 369-380.
Zink, T., & Geyer, R. (2017). Circular economy rebound. Journal of Industrial Ecology, 21(3),
593-602.