What is a Literacy circle?
The answer is not essay, but in general, it is a technique to read texts. It is developed in groups, so the reading is less boring and more active. Each member of the group is asked to read a portion of the text, so the group covers the text faster.
In literacy circles the four skills of communication are practiced. Readers have to read his part, analyze it and share they ideas, opinions and thoughts with their mates. They discuss the text and take notes. After all the main goal of literacy circles is to build knowledge in a collaborative way. In some cases it may be fun.
Regarding to the graphic organizers for a response to a story I would use the story map organizer.