Organizations transition toward circular economy business models to strengthen operational resilience, develop new commercial opportunities, and recover economic value from existing products and materials. The three intended business drivers are supply chain resilience, customer portfolio expansion, and material value recovery.
Option C — Mitigate risks and increase supply chain resilience: Circular practices reduce dependence on virgin raw materials and vulnerable global supply chains. Reusing components, remanufacturing equipment, and recovering materials can help organizations mitigate supply disruptions, resource scarcity, and procurement risks.
Option D — Renew and grow the customer portfolio with expanded services: Circular business models create opportunities for additional customer services, including equipment lifecycle management, product takeback, remanufacturing, leasing, and product-as-a-service arrangements. These offerings strengthen customer relationships and create recurring commercial opportunities.
Option F — Gain business value by reusing valuable materials: Recovering usable components and materials preserves economic value, reduces demand for newly extracted resources, and supports more efficient manufacturing and asset management.
Option A describes a potential operational benefit rather than the specific business drivers emphasized by the intended answer. Option B incorrectly associates circular transformation primarily with reducing outsourcing.
Option E requires qualification: Environmental regulation is also a legitimate reason for circular economy adoption. Consequently, the question is somewhat ambiguous, although C, D, and F are the expected three-answer combination.
Cisco's circular transformation guidance connects circularity with business resilience, innovation, material recovery, and new customer offerings.
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[Reference: Cisco Environmental Sustainability — Making a Difference; Circular Economy Business Drivers, Supply Chain Resilience, Circular Business Models, Material Recovery, and Sustainable Value Creation., , ]