The term "circular economy" was first used in Western literature in 1980 (Pearce and Turner 1990) to describe a closed system of interactions between economy and environment.[6]​ The circular economy is part of the study of feedback from non-linear, living systems.[7]​ An important outcome of this is the idea of ​​optimizing systems rather than components, or the idea of ​​"custom design". As a generic idea it frames a number of more concrete approaches including cradle-to-cradle, biomimicry, industrial ecology, and the blue economy.[8] More often described as a framework for thinking, its followers claim that it is a more coherent model that has value as a response to the end of the era of cheap materials and fuels.

In Germany and Japan the interpretation of the circular economy is based on waste management[9]​ through the 3Rs (reduce, recycle, reuse). The underlying idea is that the current linear flow of materials (resource-product-waste) needs to be transformed into a circular flow (resource-product-recycled resource). The circular economy was approved by the Chinese Government in the 11th five-year plan as a development model for China.[6]​.

In January 2012, the Ellen MacArthur Foundation published a report developed by McKinsey & Company entitled Towards the Circular Economy: Economic and business rationality for an accelerated transition. The report highlighted the economic and business opportunity of a restorative circular model. Using product case studies and economic analysis, the report details the significant potential benefits for the European Union. It argues that a subset of the EU manufacturing sector could generate net material cost savings worth up to $630 billion p.Un. in 2025 — stimulating economic activity in the areas of product development, remanufacturing and repair. Towards the Circular Economy also identified the key decision-making blocks to transition to a circular economy, specifically in circular production and design skills, new business models, skills in building waterfalls and reverse cycles, and cross-cycles and collaboration between sectors.[10]​.

In some areas, such as the disposable packaging industry, the term is used as imagewashing, trying to maintain an unsustainable business model that barely manages to incorporate 2% of recycled materials in the manufacture of new packaging.[11]​.

There are Organizations and Projects to advise regarding the management of waste electrical and electronic equipment (WEEE).

On the other hand, in Latin America 50% of solid waste is organic matter, of which 90% is not used or goes to the trash. According to the Economic Commission for Latin America and the Caribbean, improving the efficiency and useful life of materials in our region would lead to the creation of five million jobs.

[12]​.

The economy represents a sustainable option to the traditional linear model of "produce, use and dispose", seeking to greatly expand the reuse of resources and reduce waste as much as possible. Although its use faces various challenges:[14]​.

According to Linder and Williander, a circular business model is "a business model in which the conceptual logic for value creation is based on the utilization of the economic value retained in products after use in the production of new offerings."[15]​.

Mateusz Lewandowski offers a proposal to address this need to design circular business models and presents a conceptualization of a theoretical framework called: CBMC. The CBMC consists of eleven building blocks, adapted from the Osterwalder" and Pigneur") Canvas, encompassing not only traditional components with minor modifications, but also material loops and adaptation factors. These building blocks allow the design of a business model in accordance with the principles of the circular economy, and consist of:[16]​.

The EC does not intend to change the paradigm of maximum profit for companies. Rather, it suggests an alternative way of thinking about how to gain lasting competitive advantage while simultaneously addressing the environmental and socioeconomic concerns of the century. In fact, moving away from linear forms of production can often lead to the development of new distinctive skills along the value chain and, ultimately, superior profits that reduce expenses, improve efficiency, comply with stricter regulations and respond to the expectations of the most environmentally sensitive consumer. But, despite the numerous examples of companies in all sectors that have successfully adopted circular solutions and despite the large number of opportunities that still exist, decision-making on CE remains a very complex exercise that requires the clear definition of specific circular actions adaptable to the company's profile and objectives. The complexity and disorientation on the subject is still strongly felt by the majority of companies (especially SMEs), which perceive circular strategies as something that does not apply to them or that is too expensive and risky to implement.[17]​ This concern is today confirmed by the results of ongoing monitoring studies, such as the Circular Readiness Assessment.[18]​.

Business strategy is the scope of administration and management sciences that allows companies to carefully evaluate their CE-inspired options, but also to divide a company into its parts and investigate if/how/where seeds of circularity exist or can be implanted. The book Strategic Management and the Circular Economy defined for the first time a strategic decision-making process of the CE,[19]​ covering the analysis, formulation and planning phases. Each phase is supported by typical management consulting approaches and tools, such as Trees (graph theory), value chain, VRIO), Porter's 5 forces, PEST, SWOT,[20]​ the strategic clock or the Internationalization matrix – all reviewed in EC key, thus revealing new sets of questions and considerations. Although not yet fully verified, it is argued that the entire set of strategic thinking reference tools could, in fact, be calibrated with EC parameters. This argument has already been made with reference to the matrix of the strategic direction of the product with respect to the market, the Mckinsey matrix for evaluating the strength of the company with respect to the attractiveness of the sector, the BCG matrix of the stock market against the growth rate of the sector and the Kraljic portfolio matrix.[21]​.

Quite a few awards are given to projects that implement the circular economy as a main model:.

https://www.stephenjwright.com/circular-economy.

The term "circular economy" was first used in Western literature in 1980 (Pearce and Turner 1990) to describe a closed system of interactions between economy and environment.[6]​ The circular economy is part of the study of feedback from non-linear, living systems.[7]​ An important outcome of this is the idea of ​​optimizing systems rather than components, or the idea of ​​"custom design". As a generic idea it frames a number of more concrete approaches including cradle-to-cradle, biomimicry, industrial ecology, and the blue economy.[8] More often described as a framework for thinking, its followers claim that it is a more coherent model that has value as a response to the end of the era of cheap materials and fuels.

In Germany and Japan the interpretation of the circular economy is based on waste management[9]​ through the 3Rs (reduce, recycle, reuse). The underlying idea is that the current linear flow of materials (resource-product-waste) needs to be transformed into a circular flow (resource-product-recycled resource). The circular economy was approved by the Chinese Government in the 11th five-year plan as a development model for China.[6]​.

In January 2012, the Ellen MacArthur Foundation published a report developed by McKinsey & Company entitled Towards the Circular Economy: Economic and business rationality for an accelerated transition. The report highlighted the economic and business opportunity of a restorative circular model. Using product case studies and economic analysis, the report details the significant potential benefits for the European Union. It argues that a subset of the EU manufacturing sector could generate net material cost savings worth up to $630 billion p.Un. in 2025 — stimulating economic activity in the areas of product development, remanufacturing and repair. Towards the Circular Economy also identified the key decision-making blocks to transition to a circular economy, specifically in circular production and design skills, new business models, skills in building waterfalls and reverse cycles, and cross-cycles and collaboration between sectors.[10]​.

In some areas, such as the disposable packaging industry, the term is used as imagewashing, trying to maintain an unsustainable business model that barely manages to incorporate 2% of recycled materials in the manufacture of new packaging.[11]​.

There are Organizations and Projects to advise regarding the management of waste electrical and electronic equipment (WEEE).

On the other hand, in Latin America 50% of solid waste is organic matter, of which 90% is not used or goes to the trash. According to the Economic Commission for Latin America and the Caribbean, improving the efficiency and useful life of materials in our region would lead to the creation of five million jobs.

[12]​.

The economy represents a sustainable option to the traditional linear model of "produce, use and dispose", seeking to greatly expand the reuse of resources and reduce waste as much as possible. Although its use faces various challenges:[14]​.

According to Linder and Williander, a circular business model is "a business model in which the conceptual logic for value creation is based on the utilization of the economic value retained in products after use in the production of new offerings."[15]​.

Mateusz Lewandowski offers a proposal to address this need to design circular business models and presents a conceptualization of a theoretical framework called: CBMC. The CBMC consists of eleven building blocks, adapted from the Osterwalder" and Pigneur") Canvas, encompassing not only traditional components with minor modifications, but also material loops and adaptation factors. These building blocks allow the design of a business model in accordance with the principles of the circular economy, and consist of:[16]​.

The EC does not intend to change the paradigm of maximum profit for companies. Rather, it suggests an alternative way of thinking about how to gain lasting competitive advantage while simultaneously addressing the environmental and socioeconomic concerns of the century. In fact, moving away from linear forms of production can often lead to the development of new distinctive skills along the value chain and, ultimately, superior profits that reduce expenses, improve efficiency, comply with stricter regulations and respond to the expectations of the most environmentally sensitive consumer. But, despite the numerous examples of companies in all sectors that have successfully adopted circular solutions and despite the large number of opportunities that still exist, decision-making on CE remains a very complex exercise that requires the clear definition of specific circular actions adaptable to the company's profile and objectives. The complexity and disorientation on the subject is still strongly felt by the majority of companies (especially SMEs), which perceive circular strategies as something that does not apply to them or that is too expensive and risky to implement.[17]​ This concern is today confirmed by the results of ongoing monitoring studies, such as the Circular Readiness Assessment.[18]​.

Business strategy is the scope of administration and management sciences that allows companies to carefully evaluate their CE-inspired options, but also to divide a company into its parts and investigate if/how/where seeds of circularity exist or can be implanted. The book Strategic Management and the Circular Economy defined for the first time a strategic decision-making process of the CE,[19]​ covering the analysis, formulation and planning phases. Each phase is supported by typical management consulting approaches and tools, such as Trees (graph theory), value chain, VRIO), Porter's 5 forces, PEST, SWOT,[20]​ the strategic clock or the Internationalization matrix – all reviewed in EC key, thus revealing new sets of questions and considerations. Although not yet fully verified, it is argued that the entire set of strategic thinking reference tools could, in fact, be calibrated with EC parameters. This argument has already been made with reference to the matrix of the strategic direction of the product with respect to the market, the Mckinsey matrix for evaluating the strength of the company with respect to the attractiveness of the sector, the BCG matrix of the stock market against the growth rate of the sector and the Kraljic portfolio matrix.[21]​.

Quite a few awards are given to projects that implement the circular economy as a main model:.

https://www.stephenjwright.com/circular-economy.