Strategic Management and the Circular Economy

Dr Marcello Tonelli is the founder and Managing Director of WorlDynamics Pty Ltd, an organization that promotes sustainable development and green innovation. After obtaining his PhD degree in Business Strategy in 2009, Dr Tonelli worked with the Australian Centre of Entrepreneurship Research (ACE) in the fields of Social Innovation, Territorial Strategies, and Poverty Alleviation generating growing academic interest. He also practiced as a Certified Management Consultant and a Fellow of the Australian Institute of Management. Nicolò Cristoni is a sustainability professional operating at the intersection of Environmental Stewardship, Sustainable Innovation and the protection of Human and Workers’ Rights. He is specialized in planning and executing responsible sourcing programs for multinational brands that are increasingly Circular Economy-inspired. Nicolò also provides technical support to international human rights organizations.

Part I: An Overview

Chapter 1 – The Challenges of the Produce-Use-Dispose Model








Introduction



Exceeding Planetary Natural Thresholds



Scarcity of Raw Materials and Price Volatility



Rising Middle-Class Population



Structural Inefficiencies of the Current Economic Model



Conclusions



Chapter 2 – An introduction to the Circular Economy








Introduction



Biosphere and Technosphere Products



Technological, Regulatory and Social Factors



Conclusions



Part II: Circular Economy Strategy: Setting the Stage

Chapter 3 − A CE Framework for Action








Introduction



EMS Versus CE



CE Guiding Principles



CE Business Objectives



CE Areas of Intervention



Conclusions



Chapter 4 − CE Enabling Technologies








Introduction



Digital Technologies



Design & Engineering Technologies



Conclusions



Chapter 5 − Business Models for a CE








Introduction



Net-Zero Innovation



Servitization



Product Life Extension



Product Residual Value Recovery



Conclusions



Part III: CE Strategic Management

Chapter 6 – Introducing the CE Strategic Process








Introduction



Organizational Culture



The CE Strategic Process



Current Strategy Identification



Idea Trees





Supporting Methods for Idea Tree Analysis: Circular Brainstorming




Conclusions



Chapter 7 – CE Data Collection and Prioritization: Firm, Industry and External Levels of Analysis








Introduction



The Value Chain





Supporting Methods for Undertaking Value Chain Analysis: Interviewing Key Personnel




The VRIE Framework



Five Forces





Supporting Methods for Undertaking CE Industry Analysis: Interviewing Key Personnel




PEST





Supporting Methods for Undertaking PEST Analysis: Interviewing Key Personnel




Conclusions



Chapter 8 – CE Data Integration








Introduction



PEST vs 5 Forces Matrix



SWOT Analysis





SWOT Adaptation #1: The Dynamic CE-SWOT



SWOT Adaptation #2: The CE-TOWS Matrix




Conclusions



Chapter 9 – Determining Your Preferred CE Position








Introduction



Strategic Quadrant





Supporting Methods for Market Positioning: Interviewing Key Personnel




Approaches to Internationalization





Supporting Methods for Internationalization Decision-Making: International Strategic Alternatives Checklist




Conclusions



Chapter 10 – Gap Analysis, CE Strategy Formulation and Planning








Introduction



Gap Analysis





Supporting Methods for CE Gap Analysis: Environmental Impacts Table



Supporting Methods for CE Gap Analysis: Circular Readiness Assessment




Formulating a CE Strategy





Supporting Methods for CE Strategy Formulation: Decision Priority Matrix



Supporting Methods for CE Strategy Formulation: The 4-Step Process for Piloting CE Ideas




CE Strategic Planning





Supporting Methods for Strategic Planning: Process Alternatives Checklist




Conclusions



Part IV: CE @ 360°

Chapter 11 – Tools for CE Analysis at Micro Level








Introduction



Life Cycle Assessment (LCA)



Lifecycle Costing (LCC)



Material Input Per Unit of Service (MIPS)



Conclusions



Chapter 12 – Tools for CE Analysis at Macro Level








Introduction



Material Flow Analysis (MFA)



Value Chain Analysis (VCA)



Environmental Input-Output Analysis (EIOA)



Life Cycle Assessment (LCA)



Ecological Footprint (EF)



Environmentally-weighted Material Consumption (EMC)



Land and Ecosystem Accounts (LEAC)



Human Appropriation of Net Primary Production (HANPP)



Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA)



Cost Benefit Analysis (CBA) and Cost Effectiveness Analysis (CEA)



Conclusions



Chapter 13 – Conclusions