Business Management Toolkit: Circular Business Model (DP IB Business Management): Revision Note

Circular business models

• This approach is also known as the “cradle-to-cradle” model

  • Products are not simply thrown away

  • Their materials are used again in new products

• In a circular model:

  • Products are designed to last longer

  • Materials are easier to recover and reuse

  • Waste is seen as a valuable resource

• The aim is to reduce dependence on limited natural resources, lower environmental damage and improve long-term sustainability

How Abraca’s Activities Align with a Circular Business Model

1. E-waste recycling

• ABC recovers gold and other precious metals from discarded electronic circuit boards.

• Instead of sending electronics to landfill, valuable materials are reused.

• This reduces:

  • Mining of new raw materials.

  • Environmental damage from waste.

This is a clear example of turning waste into a resource.

2. Recycled aggregates in concrete

• Old concrete can be crushed and reused as aggregate in new construction.

• This reduces the need to extract new stone and gravel.

• It also lowers landfill waste from demolished buildings.

This supports a closed-loop system within the construction industry.

3. Improving production efficiency

• ABC is considering increasing efficiency in its concrete factories.

• More efficient production reduces:

  • Energy use

  • Waste

  • Carbon emissions

• This supports environmental sustainability within operations management.

4. Reduced reliance on finite resources

• E-waste contains metals such as gold and copper

• Recovering these materials reduces dependence on mining

• Quarrying limestone and aggregates can damage landscapes, so recycling reduces environmental harm

Advantages for Abraca