BMT8- HUMAN RESOURCE
CIRCULAR BUSINESS
MODELS
Presented by: ESHAL ESSANI ,SAHAL IMRAN
AND HAFSA
OVERVIEW
01 02
About CBM Types of CBM
03 04
Cause of marger to
Case study
the question
Next Project
ABOUT CBM
A circular business model articulates the logic Circular business models focus on
of how an organization creates, delivers, and keeping materials in use for as long as
captures value to its broader range of possible and minimizing waste. This
stakeholders while minimizing ecological and can be done through a variety of
social costs. strategies, such as using renewable
A sustainable approach that transforms waste and reusable inputs, sharing and rental
into value, reimagining traditional business platforms, product life extension,
practices for a better world. standardization, and resource
recovery.
May
Circular business models, like sharing and product service
systems, make managers rethink how their organizations are set
up. This happens because these models focus on sustainability
and teamwork rather than just selling products.
For example, moving from owning things to just using them
challenges the usual way companies make money and needs a
different approach.
It also means changing from traditional top-down structures to
more flexible setups that encourage partnerships.
Instead of always selling new stuff, circular models suggest
making products last longer, which means organizations need to
provide repair and upgrade services.
Additionally, using technology to track products' lifecycles
requires a shift in how companies manage and analyze data.
Overall, these changes make managers question and adjust
their organizational structures to fit the principles of
sustainability and teamwork in circular business models.
Case study
An Atlanta-based commercial flooring company. In the 1990s its founder and CEO, Ray Anderson
Declared that he wanted Interface to become “the first sustainable corporation in the world.” To achieve
that, the company would shift its business model from selling to leasing.
It launched the Evergreen Services Agreement (ESA) program, with installation, maintenance, and removal of
its flooring bundled under one monthly fee, making it possible for the company to keep used flooring materials
out of landfills and recycle the valuable raw materials in them.
This unprecedented move was intended to close the loop of the commercial-carpeting supply chain, and
Interface pushed hard to make it work, even going so far as to develop a network of carpet distributors to
service clients across the United States on behalf of the company.
But after seven years of strenuous sales efforts, Interface had acquired just a handful of lessees. The
overwhelming majority of customers preferred to buy rather than lease their carpets because carpet
maintenance fell under the general heading of janitorial services, rendering its costs invisible to them. They
could not easily see the upside to paying fairly high monthly fees. The ESA program was simply not scalable.
In 2000, Interface shifted its focus from long-term leases to producing modular carpet tiles using sustainable
materials, such as recyclable nylon fibers and recyclable vinyl backings. And as it turned out, manufacturing
the new carpet tiles emitted 75% less carbon than the industry average. Combined with a transition to
renewable energy on production sites, these innovations have shrunk Interface’s total carbon footprint by
69%, according to company reports. Unlike leasing, the focus on recycling has been leveraged.
Reference:
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