Circular Economy 2Circular EconomyCircular Economy Characteristics and ConceptsThe circular economy is a closed economic system where there is a limited outflow of resources along with the production system. A company that applies a circular economy uses processes that go in cycles rather than linear methods. A waste product at a given production stage is used as a raw material for a subsequent step. A circular economy is used for a company's sustainability in three aspects; society, economy, and environment. The system is retaining high utility for products all their economic life (Batista et al. 2018 p.422). Products are made reusable deriving economic value in materials perceived to be useless even after they have been used before. For instance, electrical appliances can be made in such a way that after they satisfied their given economic life, they can be repaired and used to serve the same purposes as before.Products initially used can also be recycled to produce different useful products. For example, plastic products can be recycled into pellets useful in the production of new plastic items. Circular economy principles include ecosystem conservation, population growth control, increased public engagement, biodiversity conservation, sustainable society achievement, and improvement of human resource (Batista et al. 2018 p.420). Generally, a circular economy is used in controlling waste through the creation of value for the trash. Circular economy emphasizes sharing, reuse and repairing of products to maintain them productive in the marketplace. Products already created are kept and preserved to be used at a late stage when theirvalue goes up. Companies should concentrate on sources that can offer more than one raw material for a circular economy to be achieved.
Circular Economy 3Investing heavily in technology is a significant component in realizing a dynamic circulareconomy. Technology helps the company to easily integrate its human resource in the creation of value of waste products. Products manufactured using circular economy remains useful for as long as possible (Batista et al. 2018 p.423). The circular economy is associated with minimal waste production and is economically friendly. Consequently, costs that would have otherwise used n sourcing of new raw material are eliminated, saving the Company financial expenditures.Reasons for Circular EconomyThe circular economy is mainly for sustaining companies due to increased pressure on available raw materials. Economically, raw materials are costly and limited in supply. The global population is continuously growing, causing a lot of pressure on the existing raw materials(Bocken et al. 2016 p.312). Recycling, sharing and remanufacturing of products helps in designing more products at less cost. There is increased raw material supply security due to reduced pressure, and companies can effectively do proper planning without necessarily strainingother resources in the company. Branding through innovation helps in achieving uniqueness and