The main goal of an organization is to make profit. Therefore there is need for firm to have a strategy that reflects on its long term goals and this strategy should aim at configuring a firms resources, environment and its employees to enable it to meet its targets of making profits as well as the market demand and market expectations. Normative theory is a subjective, value laden and usually emotional theory that aims at changing the productivity of a business by increasing the welfare of the workers. Positive theory of business analysis on the other hand describes the current status of the firm or an organization without necessarily stressing on the ways to make it better. It is objective and is not emotional. It is based upon sound economic statistic methods and probability and it aims at providing the probable outcomes of taking an alternative decision. A firm must have a good strategy that can be able to address both the normative and positive questions before applying either positive or normative theory in their system. This is because while positive questions can easily be answered and settled using statistical methods, normative questions require their introduction into a firm and observing their outcome. Both normative and positive decision making theories are interlinked.