Difference Between Positive And Normative View

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Assignment 1

1. Discuss the difference between Positive vs. Normative Views
The positive view of strategy is concerned with the firm’s actual strategy and how it comes to be. The normative view, on the other hand, is concerned with what the firm’s strategy should be. For example, the positive view means what you are or what is. However, normative view means what should be.

2. How do you assess innovative capabilities in a business/ corporation?
General managers assess the innovative capabilities by doing an innovative capacities audit framework. Innovative capabilities exist at the business unit and corporate (multibusiness) levels.
In general, the innovative strategies at business unit level with respect to new products and services and/ or new production and delivery systems can be characterized in terms of timing of market entry, technological leadership or followership, scope of innovativeness, and rate of innovativeness. Five important categories of variables influence the innovation strategies of a business: resources available for innovative activity, capacity to understand competitors’ strategies and industry evolution with respect to innovation, capacity to understand technological developments relevant to the business unit, structural and cultural context of the business unit affecting internal entrepreneurial behavior and strategic management capacity to deal with internal entrepreneurial initiatives. The audit should address the combination of the five categories.
The corporate level audit is based on corporate management’s ability to identify and exploit synergies. It is necessary to investigate whether and how the
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