Which of the Following Is NOT a Guideline for When

question 27

Multiple Choice

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

• A) When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products
• B) When an organization's present channels of distribution can be used to market the new products to current customers
• C) When the new products have countercyclical sales patterns compared to an organization's present products
• D) When an organization competes in a highly competitive and/or a no-growth industry
• E) When existing markets for an organization's present products are not yet saturated

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Definitions:

Guiding Rules

Principles or directives that influence decision-making and behavior within an organization.

Variation in Values

Refers to the differences in beliefs, priorities, or principles among individuals or groups within a society or organization.

Interpretations

The act of explaining or providing the meaning of something, often involving different perspectives or analysis.

Moral-rights View

A perspective in ethics which suggests that individuals have fundamental rights and freedoms that are to be respected and protected, often regardless of outcomes.