Abstract
The use of renewable energy and recycling products is one of the main achievements of organizations. The circular economy (CE) is a new concept which evolves out of a new management assumption in organizations based on recycling, reuse, and repurposing of products. The circular economy provides a framework for facing challenges and a guide for rethinking and redesigning the future. This chapter analyzes the Portuguese market for circular economy organizations based on discussion of the CE conceptual model. The circular economy is expected to contribute positively by introducing new methodologies for the production of raw materials, with new production processes and giving value to eco products. The challenge for Portuguese organizations is to create management “vectors” which promote networking innovation, labor, capital, and eco products. Overall, the conceptual model presented gives importance to Portuguese business decision making for sustainable consumption, which provides advancements in business for the green supply chain.
TopBackground
The objective of this study is to analyse the vectors which influence circularity in Portugal. This section will characterize the organisations and the conceptual model. This means that not only are the positive and negative impacts from using circularity analysed but also the stakeholders, the use of natural resources and market strategies which comprise the circular Portuguese conceptual model. The goal is to create an analogy between the organisations which use circular products and describe the conceptual model homogeneously from different sectors.
The Circular Economy
The term circular economy has both a linguistic and a descriptive meaning. Linguistically it is an antonym of a linear economy.
Murray et al. (2017:371).
Key Terms in this Chapter
Management Decision: Organizational objective decisions practiced by mangers.
Circular Economy: a new concept of re-use, re-cycling and re-defining where a new product is created which is needed by consumers. It is a non-linear concept of a relationship between consumers and producers. The circular economy defines new capacity for production, using raw materials and others in order to create a new value in products and a new value chain. There is a maximization of product utility by consumers. Nothing is lost, but transformed in order to create a necessity in consumers/organizations.
Conceptual Model: Model used by a certain number of organizations, which shows some similarity in some vectors (e.g., markets, strategies).
Strategy: Reaching management goals in short, medium or long runs. Organizations position themselves in their market to achieve goals and objectives.