In the population-ecology model of organizations, diversification means the appearance of new, diverse forms in a population of organizations.Population ecology theory is founded on the assumption that business organizations are biological organisms. As a result, population ecologists define their concepts in terms of evolutionary biology. Their model, in particular, postulates that the fitness of a firm's organizational design and structure can influence its ability to survive or perish in a particular environment.Therefore, in the population-ecology model of organizations, diversification means the appearance of new, diverse forms in a population of organizations.