!Sustainability of a competitive advantage This chapter starts to define the [[Role of Marketing in an organisation]]. It continues to descibe the [[Sustainability of a Competitive Advantage]]. Next the [[Value Grid]] is introduced to summarize a view along two of the three dimension resulting into a sustainable competitive advantage. Another model introduced is the [[The Commodity Magnet]] that defines a common cycle of innovation and profitability. !Strategic ambition According to Kenneth Andrews a strategic formulation consist of four sub-activities: # Assessment of external opportunities and threats # Evaluation of internal strengths and weaknesses in terms of: ## Material resources ## Technical resources ## Financial resources ## Managerial resources # The values, aspirations and ideals of senior management # What are the companies responsibilities towards society According to Stephen Covey (seven habits of highly effective people) you should 'begin with the end in mind'. It is based on the principle that all things are created twice. First mentally, and next physically. the extent to which you begin with the end in mind often determines whether you are able to create a successful enterprise. Collins and Porras propose the concept of a A Big Hairy Audacious Goal (BHAG) which answers the following questions: # What is the organization passionate about? # What activities can the organization be best in? # What drives the economic engine of the organization? !Leadership A company needs both managers and leaders, see [[Managers versus Leaders]]@management. Current research opposes the following forms of leadership: * Transactional leadership (favored by contemporary research) , in which leaders direct and motivate their co-workers by means of tangible and intangible rewards. * Transformational leadership, in which leaders inspire their co-workers and alter needs beliefs and values. In the book [[Good-to-Great]] the following five levels of leadership are defined which are translated to marketing functions below: * Level 1: Highly Capable Marketeer (Marketing Operations) * Level 2: Contributing Marketing Team Member (Marketing Operations) * Level 3: Competent Marketing Manager (Transactional Leadership) * Level 4: Effective Marketing Leader (Transformational Leadership) * Level 5: Level 5 Marketing Executive (Transformational Leadership) A company will need a healthy mix of these levels.