Yum fails to install development tools with the error, "No packages in any requested group available to install or update"

Issue

• Yum fails to install the development tool-set with the following error:

  # yum groupinstall "Development tools"
  Loaded plugins: langpacks, product-id, rhnplugin, search-disabled-repos
  This system is receiving updates from RHN Classic or Red Hat Satellite.
  There is no installed groups file.
  Maybe run: yum groups mark convert (see man yum)
  Warning: Group development does not have any packages to install.
  Maybe run: yum groups mark install (see man yum)
  No packages in any requested group available to install or update