The paper attempts to describe the environmental scanning of a country in which PPQ Parts will expand its business, and it also discusses the internal strengths and weaknesses of the country. Additionally, it includes discussion of both short and long term goals and strategies incorporating limitations and benefits of entering into the desired market. The location decided for expansion for PPQ Parts is Germany. Environmental Scanning The Economy Germany is a developed economy that has a vast supply of specialized knowledge and expertise. The German economy had surpassed a global recession which occurred in 2009, but since then it has recovered losses that occurred in the recession. Germany has expertise in both exports and extensive knowledge base in manufacturing. Germany is amongst world’s top 10 strongest economies. The foreign direct investment in the country increased by 45% in the year 2009, where overall FDI decreased around the world by 37%. The country has recorded a consistent 2.2% increase in GDP of the country on a quarterly basis and 9% on an annual basis. The small and medium enterprises contribute to the larger portion of the economy of the country. Generally, it is the larger firms that contribute towards the economic growth, but the case is opposite in Germany where SME’s and MM’’s contribute 99% of the overall companies with significant innovative products. The labor market in Germany is slow, but it is gaining strength. It is a formidable prospect to invest in the particular country where the spending rate of consumers is high due to high standards of living, and therefore, it would be financially beneficial for PPQ Parts to enter the market with small SUV’s (Bolgar, 2010). Competition The automotive industry of Germany is the biggest in the European Union with almost 35% of the global market share employing a large of skilled individuals. The country is the birthplace of automobiles, and it is in the fourth place amongst countries producing automobiles. Amongst the top producers of small SUV’s BMW, Mercedes-Benz, and Volkswagen top the list. The competition is fierce in the saturated market of SUV’s. However, the small SUV’s category market is still untapped. The automobile industry constitutes over 20% revenues of the total German economy (GTAI, 2012). Political Stability Germany is an active member of the European Union, and it uses Euro as its currency. The country has a federal democracy, and the political situation has been continuously on the road to stability since World War II. The country is politically stable, but over the years it has experienced problems of Euro. The government has taken steps to resolve Euro debt crisis by having a certain amount of control over their budgets and changes in the economic policies of member states (AMB Company Inc, 2012). Internal Strengths The profit margin of the company is equal to the average profit margin of the entire industry in the United States. The company employs over 5,000 employees, which shows that the company is a large employer. PPQ Parts takes an interest in the social corporate responsibility while investing 0.5% of the total profits in charity and community building activities. The company plans to expand its business internationally to diversify its pr