In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage.
A)deskilling
B)riskseeking
C)riskavoiding
D)divesting
E)riskextension

Question

In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage.
A)deskilling
B)risk­seeking
C)risk­avoiding
D)divesting
E)risk­extension

Quizplus · Accepted Answer

The strategic reference point theory suggests that firms make decisions based on their past successes and experiences, and their reference point is the current competitive advantage they have. The risk-avoiding strategy aims to protect this existing advantage by maintaining the status quo and avoiding any actions that may jeopardize their position. Deskilling, divesting, and risk-extension strategies do not necessarily aim to protect an existing advantage, and risk-seeking strategy involves taking actions that may increase risk but also potentially increase returns, which is not necessarily the goal of protecting an existing advantage.

In the Context of the Strategic Reference Point Theory, the _____