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Strategic planning oriented to circular business models: A decision framework to promote sustainable development

Author

Listed:
  • Fabio Neves Puglieri
  • Rodrigo Salvador
  • Omar Romero‐Hernandez
  • Edmundo Escrivão Filho
  • Cassiano Moro Piekarski
  • Antonio Carlos de Francisco
  • Aldo Roberto Ometto

Abstract

Circular economy principles are usually dissociated from strategic planning practices, and there seems to be no guidance on how to decide on competitive strategies to establish circular business models. Therefore, this article aimed to propose a strategic planning decision framework oriented to circular business models (SPDF‐CBM) and test it by conducting a case study of a Brazilian company from the cosmetic sector. The SPDF‐CBM framework comprises five stages: (A) circular trends analysis; (B) circular vision and goals definition; (C) current circular business status; (D) competitive strategy for a circular economy definition; and (E) competitive strategies for a circular economy prioritization. Based on a number of tools to assist going through Stages A, B, and C, businesses get to know their current circular status and define their desired future state. In Stages D and E, businesses define their competitive strategy and spot circular business models (and strategies) they can pursue. After testing the proposed framework in a Brazilian startup from the cosmetic sector, results from SPDF‐CBM suggested that the startup pursues a competitive strategy based on differentiation and a CBM aimed at promoting renewable options. It was also pointed out that other CBMs in decreasing degree of fit with the business were maximizing material and energy efficiency, extending resource value and product life, pursuing sufficiency, and delivering functionality rather than ownership. By using the SPDF‐CBM framework, organizations can increase both their competitiveness and circularity at the same time.

Suggested Citation

  • Fabio Neves Puglieri & Rodrigo Salvador & Omar Romero‐Hernandez & Edmundo Escrivão Filho & Cassiano Moro Piekarski & Antonio Carlos de Francisco & Aldo Roberto Ometto, 2022. "Strategic planning oriented to circular business models: A decision framework to promote sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3254-3273, November.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:7:p:3254-3273
    DOI: 10.1002/bse.3074
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    2. Mladen Krstić & Giulio Paolo Agnusdei & Snežana Tadić & Milovan Kovač & Pier Paolo Miglietta, 2023. "A Novel Axial-Distance-Based Aggregated Measurement (ADAM) Method for the Evaluation of Agri-Food Circular-Economy-Based Business Models," Mathematics, MDPI, vol. 11(6), pages 1-27, March.
    3. Swee Kuik & Akhil Kumar & Li Diong & Joowon Ban, 2023. "A Systematic Literature Review on the Transition to Circular Business Models for Small and Medium-Sized Enterprises (SMEs)," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    4. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).

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