Strategic Management and the Circular Economy
Routledge Research in Strategic Management Series

In recent years, the Circular Economy (CE) has gained worldwide attention as an effective alternative economic system to the current take-make-waste model of production and consumption. As more and more firms begin to recognize the potential of this novel approach, the CE quickly moves from theory to practice and the demand for a coherent and structured strategic approach ? one that companies can rely upon when commencing their circular journey ? grows accordingly. Strategic Management and the Circular Economy aims to bridge the theory-practice gap by putting forward a detailed step-by-step process for analysis, formulation, and planning of CE strategies.

Starting from a solid framework of easy-to-grasp constructs (key principles, business objectives and areas of intervention), the authors guide the reader through an understanding of how conventional tools for strategic management can be re-programed under a CE perspective. To assist learning and encourage circular thinking, the reader is constantly prompted with examples of how forward-looking companies across industries and geographies are already applying circular strategies to future-proof their operations, boost innovation, penetrate new markets and secure customer loyalty.

Part I: An Overview

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

1. Introduction
2. Exceeding Planetary Natural Thresholds
3. Scarcity of Raw Materials and Price Volatility
4. Rising Middle-Class Population
5. Structural Inefficiencies of the Current Economic Model
6. Conclusions

Chapter 2 – An introduction to the Circular Economy

1. Introduction
2. Biosphere and Technosphere Products
3. Technological, Regulatory and Social Factors
4. Conclusions

Part II: Circular Economy Strategy: Setting the Stage

Chapter 3 − A CE Framework for Action

1. Introduction
2. EMS Versus CE
3. CE Guiding Principles
4. CE Business Objectives
5. CE Areas of Intervention
6. Conclusions

Chapter 4 − CE Enabling Technologies

1. Introduction
2. Digital Technologies
3. Design & Engineering Technologies
4. Conclusions

Chapter 5 − Business Models for a CE

1. Introduction
2. Net-Zero Innovation
3. Servitization
4. Product Life Extension
5. Product Residual Value Recovery
6. Conclusions

Part III: CE Strategic Management

Chapter 6 – Introducing the CE Strategic Process

1. Introduction
2. Organizational Culture
3. The CE Strategic Process
4. Current Strategy Identification
5. Idea Trees

1. Supporting Methods for Idea Tree Analysis: Circular Brainstorming
6. Conclusions

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

1. Introduction
2. The Value Chain

1. Supporting Methods for Undertaking Value Chain Analysis: Interviewing Key Personnel
3. The VRIE Framework
4. Five Forces

1. Supporting Methods for Undertaking CE Industry Analysis: Interviewing Key Personnel
5. PEST

1. Supporting Methods for Undertaking PEST Analysis: Interviewing Key Personnel
6. Conclusions

Chapter 8 – CE Data Integration

1. Introduction
2. PEST vs 5 Forces Matrix
3. SWOT Analysis

1. SWOT Adaptation #1: The Dynamic CE-SWOT
2. SWOT Adaptation #2: The CE-TOWS Matrix
4. Conclusions

Chapter 9 – Determining Your Preferred CE Position

1. Introduction
2. Strategic Quadrant

1. Supporting Methods for Market Positioning: Interviewing Key Personnel
3. Approaches to Internationalization

1. Supporting Methods for Internationalization Decision-Making: International Strategic Alternatives Checklist
4. Conclusions

Chapter 10 – Gap Analysis, CE Strategy Formulation and Planning

1. Introduction
2. Gap Analysis

1. Supporting Methods for CE Gap Analysis: Environmental Impacts Table
2. Supporting Methods for CE Gap Analysis: Circular Readiness Assessment
3. Formulating a CE Strategy

1. Supporting Methods for CE Strategy Formulation: Decision Priority Matrix
2. Supporting Methods for CE Strategy Formulation: The 4-Step Process for Piloting CE Ideas
4. CE Strategic Planning

1. Supporting Methods for Strategic Planning: Process Alternatives Checklist
5. Conclusions

Part IV: CE @ 360°

Chapter 11 – Tools for CE Analysis at Micro Level

1. Introduction
2. Life Cycle Assessment (LCA)
3. Lifecycle Costing (LCC)
4. Material Input Per Unit of Service (MIPS)
5. Conclusions

Chapter 12 – Tools for CE Analysis at Macro Level

1. Introduction
2. Material Flow Analysis (MFA)
3. Value Chain Analysis (VCA)
4. Environmental Input-Output Analysis (EIOA)
5. Life Cycle Assessment (LCA)
6. Ecological Footprint (EF)
7. Environmentally-weighted Material Consumption (EMC)
8. Land and Ecosystem Accounts (LEAC)
9. Human Appropriation of Net Primary Production (HANPP)
10. Environmental Impact Assessment (EIA) and Strategic Environmental Assessment (SEA)
11. Cost Benefit Analysis (CBA) and Cost Effectiveness Analysis (CEA)
12. Conclusions

Chapter 13 – Conclusions

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.