Which of the Following Is NOT a Guideline for When

question 4

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:

Dependency Theory

The global theory maintaining that industrialized nations hold less-industrialized nations in a dependent relationship that benefits the industrialized nations at the expense of the less-industrialized ones.

Modernization Theory

A theory that suggests societies progress through a series of stages toward stability, democracy, and prosperity, often through technology and industrialization.

Functionalist Theory

A sociological perspective that interprets each part of society in terms of how it contributes to the stability and functionality of the whole society.

Multinational Corporations

Large companies that operate and provide goods or services in multiple countries outside of their home country.