BMG705 Assignment Sample

BMG705 Assignment Sample : Global Business in Context


Here is sample of BMG705 Assignment Sample


BMG705 Assignment Sample

The Converted Recycled Paper Manufacturing Sector includes TESA UK LTD, which is based in MILTON KEYNES, United Kingdom. At this facility, the Company has 35 people and produces $5.70 million (USD) revenues. (The number of employees is a guess.)

TESA UK LTD is a corporate family of 1,120 businesses. The tesa SE Group (hereafter referred to as “Tesa” or “Tesa Group”) is a worldwide leader in identity material and system solutions for consumer and industrial sectors (Abrell et. al. 2016). The Tesa Group, a subsidiary of the Beiersdorf Group, employs 4,716 people in over 100 countries.

Overview of the Company

Major Cities and Regions:

Tesa is active worldwide, concentrating on Europe, Africa, Asia, Australia, and the Americas. The Group’s affiliates in the United States, China, Italy, Singapore, and German locations are the most powerful single corporations globally (de Azevedo et. al. 2018). The Company has manufacturing plants in Germany and Italy, the Americas, and China. Norderstedt, near Hamburg, Germany, is home to the Company’s headquarters; an integrated research and technology centre is part of the project.

Division of Direct Industry:

Tesa’s Direct Industries subsidiary provides customized system solutions to industrial clients via direct channels, focusing on the automotive, Printing and paper, electronics, and building and construction automobile industries. The Company’s long-term strategy is to develop and build strong business lines in technologically advanced applications.

Division of Trade Markets:

Tesa’s Direct Industries subsidiary provides customized system solutions to industrial clients via direct channels, printing, and paper, focusing on the automotive, electronics, and building and construction automobile industries (Taghvaee and Parsa, 2015). The Company’s strategic focus is on creating and expanding successful business lines in technologically sophisticated applications.

When creating and promoting its market-driven, innovative Tesa focuses on the following strategic problems with its product systems under the said brand.:

  • Tesa operates on a global scale while keeping local requirements in mind.
  • It focuses on successful growth markets which can differentiate itself from its rivals.
  • Tesa is continuing to internationalize and digitize the firm, wants to balance its core markets, and is investing in extending its footprint in Asia and on the Americas in this context.

Development of Products and Technologies:

In 2020, Tesa concentrated on structural adhesion as a product and technological development priority. That includes adhesive solutions with exceptionally high bonding quality and higher stability, which could formerly only be obtained via physical joining techniques like screws, rivets, and welds (Ahlskog et. al. 2017).

Tesa has created high-strength, resistant solutions for the metalworking sector that may firmly connect metal pieces before powder painting. Up to 200°C is used for baking the powder coating. The material is not weakened as a result of this high thermal stress. It strengthens it. As a result, metal-joint bonding may now be used in a wide range of novel applications.

Corporate Social Responsibility:

Tesa strives to create a beneficial impact on society in addition to its primary business. The company’s corporate citizenship approach focuses on social responsibility, educational support, and environmental preservation. The tesa Group will continue to support a diverse variety of initiatives worldwide in 2020, as it has in the past. The objective During the COVID-19 pandemic year, the focus was on providing global support for specific initiatives through product and monetary donations (Gautam and Hens, 2020).

It also contributed a total of 5 million euros to a large-scale assistance program as part of the Beiersdorf effort “Care Beyond Skin” to address the pandemic’s consequences. Since the beginning of the year, the program has gone through several stages. With social distancing tapes, tesa offered urgent support to over 30 hospitals in Germany.

That was followed, for example, by local food bank contribution drives.

Economic Environment:

Large portions of the world economy fell significantly throughout 2020 due to the COVID-19 epidemic.  The economy suffered a record decline in the first half of 2020 due to the partial government shutdown (Nieminen, 2016). Luxembourg’s economy has been classified as generally free for almost two decades. The unreasonably high pace of government expenditure remains to obstruct higher economic liberty.

Consequently, spending in 2020 is expected to exceed spending in 2019, delaying a confrontation with the country’s ageing population’s future demands on pension and healthcare finances. According to a European rule, goods entering the EU may be subject to customs duties and import charges. The product’s nature and amount determine the rates that apply. In Luxembourg, there are no stamp taxes. The COVID-19 epidemic has caused the company to decline significantly. GDP is anticipated to fall by 6.5 per cent in 2020 due to measures put in place to prevent the spread of the COVID-19 pandemic, then recover by 3.9 per cent in 2021 if the virus fades by the summer (the single-hit scenario).

If a further viral epidemic occurs later this year (the double-hit procedure), GDP will fall 7.7% in 2020 and just 0.2% in 2021. To a lesser extent, the manufacturing sector and exports will drive the recovery in both scenarios. With the double design, the employment rates would be around 8.6% in 2021, while in the single-hit system, it would be 7.5 per cent (Sarracino and Gosset, 2015).

Trade Market:

Tesa’s industrial trade product line was increased and refined in 2020. The double-sided sticky tapes category includes releasing a new acrylic core tape product line – tesa® ACXplus Multi-Purpose (MP) – to the market, furthering the distribution of tesa ACXplus technology in trade channels. Double-sided sticky tapes with an acrylic core stand out because of their high adhesive strength and viscoelasticity, ability to adjust to strain, and temperature and weather resistance.

Sales Market Development:

The COVID-19 problem dominated the financial year 2020 without a doubt. During the closure, global industrial production fell, and individual consumption fell, in some cases dramatically. To varying degrees, this had an impact on the industrial sales markets. The global output of automobiles fell by 16% to 75 million units. All of the regions produced in low levels than the previous year. While the drop was most significant in North and South America and Western Europe, it was less pronounced in Asia.


The Company strives to empower its consumers through creative product solutions to shape technical advancement and sustainable technologies actively. The firm achieves the highest standards while reducing the carbon impact of its products throughout their whole lifespan using these solutions.

To achieve this, Tesa established a target in 2020 to increase the proportion of sustainable goods in its portfolio by 2025. That means we’ll be employing more recycled and renewable raw materials and paying more attention to the conclusion of a product’s life in the future. The goal for these is to lower the relevant carbon footprint while maintaining the excellent performance of the product and attributes.


Tesa workers’ credentials and devotion are critical to the Company’s economic performance, quality, and long-term viability. As a result, Lisa’s employer appeal is essential to the Company’s long-term success. As a global technology leader in technical adhesive tape and system solutions, Tesa must recruit and retain highly competent employees who will stay with the Company for the long haul. The company will continue to engage in staff training and development in 2020. The global COVID-19 epidemic influences a lot of things. At the close of the financial year, there were 4,716 workers (the previous year: 4,926).

Electromobility, Exterior, and Automation are Tesa Automotive’s key investment areas, with the Connected Interior sector intending to digitalize the interior space, rounding out the portfolio. For example, employees from the Automotive division collaborate closely with the Tesa Electronics division to exploit synergies in display manufacture. In the future, the goal will be to attain a key place in as quickly as possible, with as many production-related applications as possible, the value chain for significant clients.

Foreign Direct Investors (FDI):

Foreign direct investment (FDI) is a bridge investment made by people and companies from one nation into another to build a long-term stake in the recipient countries(Seid, 2018). Inward FDI refers to foreign firms’ net investments in the UK, while export Growth refers to foreign firms’ net assets in the UK.

Foreign direct investment (FDI) figures in the United Kingdom are reported on an actual parent company basis, in line with appropriate guidelines; as a result, the geographical composition reflects direct linkages between investing parties(Fauzel et. al. 2017). However, as the complexity of multinational corporations’ corporate structures grows, investment chains typically traverse many countries, the geographical composition might become skewed.

There are FDI transactions:

  1. A fresh financing project is a type of FDI. A foreign investor forms a new corporation in the UK to start a new business, create new offices, construct new buildings, or establish new manufacturing or operational facilities. This type of investment directly contributes to capital development by increasing new capital expenditures, increasing production, and creating employment and other benefits. A current investor or a new investor can both make new investments.


2. Expansion investment projects are a type of FDI in which a current investor makes a substantial investment to increase a UK foreign direct industry’s production or operating abilities (Gomtsyan, 2016). When two or more businesses opt to join rather than remain independent to create business synergies, this is known as a merger.

Assets and liabilities

The overall stock of foreign direct investment managed by UK-based enterprises is known as FDI assets. That is covers both FDI from UK-based parent firms and FDI from foreign-owned enterprises in the UK. Foreign corporations’ direct investments in the United Kingdom are known as FDI liabilities(Darvas and Hüttl, 2017). This covers both foreign parent business investments in the UK and UK-controlled affiliates’ reverse investments in other countries with their UK parent firm.

The notion of asset and liability measurement

The asset and liability measurement concept is used to make the critical distinction between outward and inward investments (Demena and Afesorgbor, 2020). It compares non-UK resident corporations’ allocation process in UK resident firms’ capital investment, including UK parent enterprises and foreign-owned UK affiliates across the world

Analyzing the economic impact of FDI:

Because of its ability to boost productivity and creativity, generate jobs, and provide a variety of other advantages, FDI is seen as a critical contributor to economic growth. (Cole Businesses that attract or receive FDI are often more productive because they have access to superior technology and management methods, which existing firms may benefit from thorough knowledge spillovers (McWilliams, 2015).

Economic analysis of Luxembourg’s Market

Prior to the nineteenth century, Luxembourg’s economy was mostly built on agriculture, with a rural-based manufacturing sector. The Luxembourg environment has changed over time, but the economy has remained constant and robust. Its GDP is growing faster than the rest of the European Union, thanks to a more than 30% contribution from the banking industry (FSI). As a result, the economy depends on the FSI’s ability to sustain and grow its unique strength which is highly beneficial for the said company’s expansion.

Manufacturing contributes less than 10% of Luxembourg’s value contributed and employs less than 10,000 people, which stands as a significant advantage for Tesa as the said company is a manufacturing company. Moreover, the economy is still heavily focused on services, with financial companies being essential. Luxembourg’s economy is very open and reliant on its neighbours, particularly those in the Grande Region (Belgium, France, and Germany).

However, the cross-border supply of products in retail marketplaces remains restricted. Luxembourg merchants are not always free to acquire their items at the lowest price in the private sector. There may be reasonable causes for pricing discrepancies between national markets, which can be a challenge or threat for Tesa. There is also evidence of territorial supply limitations that preclude lower prices in some export markets, such as Luxembourg’s manufactured branded items. However, the industrial sector has gained new opportunities due to the economy’s deregulation. Manufacturing sectors are becoming increasingly reliant on innovations, research, and development which stands as a strength for the said company.


It is concluded that Tesa SE provides deep, in-depth, and complete insights into the firm, its history, corporate strategy, businesses and structures, and operations by assessing its performance in the local market and worldwide economy. The Company’s history, current, and anticipated merger and acquisitions, financial analyses, agreements and alliances, partnerships and investments, news, rivals, also be included in this report. Based on the circumstances known to us when the transactions were done, or measures were implemented or omitted, Tesa SE received appropriate remuneration for each transaction and was not affected by the installation or absence of any actions.




Abrell, T., Pihlajamaa, M., Kanto, L., Vom Brocke, J. and Uebernickel, F., (2016). The role of users and customers in digital innovation: Insights from B2B manufacturing firms. Information & Management53(3), pp.324-335.

Ahlskog, M., Bruch, J. and Jackson, M., (2017). Knowledge integration in manufacturing technology development. Journal of Manufacturing Technology Management.

Ciuriak, D., Xiao, J., Ciuriak, N., Dadkhah, A., Lysenko, D. and Narayanan, G.B., (2015). The trade-related impact of a UK exit from the EU single market. Available at SSRN 2620718.

Cole, M.A., Elliott, R.J. and Zhang, L., (2017). Foreign direct investment and the environment. Annual Review of Environment and Resources42, pp.465-487.

Darvas, Z.M. and Hüttl, P., (2017). Returns on foreign assets and liabilities: exorbitant privileges and stabilizing adjustments (No. 2017/07). Bruegel Working Paper.

de Azevedo, A.R., Alexandre, J., Xavier, G.D.C. and Pedroti, L.G., (2018). Recycling paper industry effluent sludge for use in mortars: a sustainability perspective. Journal of Cleaner Production192, pp.335-346.

Demena, B.A. and Afesorgbor, S.K., (2020). The effect of FDI on environmental emissions: Evidence from a meta-analysis. Energy Policy138, p.111192.

Fauzel, S., Seetanah, B. and Sannassee, R.V., (2017). Analyzing the impact of tourism foreign direct investment on economic growth: Evidence from a small island developing state. Tourism Economics23(5), pp.1042-1055.

Gautam, S. and Hens, L., (2020). COVID-19: Impact by and on the environment, health and economy. Sage.

Gomtsyan, D., (2016). Economic development and the direction of FDI flows. Global Economy Journal16(1), pp.91-112.

Jeannet, J.P., Volery, T., Bergmann, H. and Amstutz, C., (2021). International Sales and Distribution Strategies. In Masterpieces of Swiss Entrepreneurship (pp. 121-134). Springer, Cham.

McWilliams, A., (2015). Corporate social responsibility. Wiley encyclopedia of management, pp.1-4.

Nieminen, H., (2016). Improving maintenance in high-volume manufacturing. Routledge.

Sarracino, F. and Gosset, A., (2015). Assessing the non-economic outcomes of social entrepreneurship in Luxembourg. Luxembourg: STATEC.

Seid, S., (2018). Global regulation of foreign direct investment. Routledge.

Taghvaee, V.M. and Parsa, H., (2015). Economic growth and environmental pollution in Iran: evidence from manufacturing and services sectors. Custos E Agronegocio Line11(1), pp.115-127.


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