Sample Essay

Current situation for theToyotamotor company inEuropecan be distinguished by the strengths and weaknesses. Being recognized globally is a great honor for this company and to do thatToyotawas responsible for the record growth rate. As, sales reached 7.97 million units in 2005 which an increment of 2.5 million since the year 2000.North Americahas always been the hunting ground for this company as sales has been increasing rapidly.

The financial back is their main strength because in 1992 they opened their first plant in theUKand then as they were approaching to the new millennium, they increased the countries which had 20 plants to 47 plants and those new countries likeFrance,Turkey,Polandand the Replubics. AsToyotaintroduced themselves to different parts of the world and were concentrating more on increasing the production rate, alarmingly they produced over 200,000 cars inEuropefor the first time in 2001. And within a span of three years, the company was producing 583,000 cars annually which was playing a great role in terms of generating some really good profit and it really helped them make a name for themselves and increase their productivity rate. In the span of 5 years from 2001 to 2005, latter analysis says thatToyotawas responsible for producing 638,000 units which was later increased to 800,000 cars in the whole ofEurope. Increase of the productivity allowedToyotato open up a factory inEurope. Though it is right that PSA and Toyota announced their joint venture in the year 2001, but if we go with the analytical point of view, if Toyota had to generate so much profit they would have waited for some more time and started a factory on their own which wasn’t a long time for this big name but by sharing a 50 percent profit with the PSA brands didn’t give them the kind of profit they wanted but if we look at the brighter side, yes PSA with Toyota had the capacity of producing 300,000 units annually but again the joint venture was only limited to manufacturing as these cars were sold through different distribution channels.

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