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:

Denial

In psychoanalytic theory, the defense mechanism that allows the mind to deny that a current source of anxiety exists.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Neo-Freudian Psychologist

A psychologist belonging to a movement that adapted and extended Freud's theories, focusing more on social and cultural factors for personality.

Collective Unconscious

Carl Jung's concept of a part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.