Chapter II

FRAMEWORK OF THE STUDY

This part of the research paper discusses the review of related studies including the

local literature, foreign literature as well as local and foreign studies. Theoretical

Framework, Conceptual Framework, and Null Hypothesis are also included.

Review of Related Studies

Foreign Study

Family business pertains to a group of people who are blood-related that has a

position or control over the company. It is usually starts on its founders who intend to

pass the business on their descendants up to the time where a business dynasty is build.

According to Galvan, Martinez & Rahman (2017), family business may have a lot of

definitions but it will always have three dimensions: one or several families hold a

significant part of the company’s capital, family have also control over the company, and

family members usually hold the top management positions. Based on their study, family

businesses provide a huge impact in terms of the entrepreneurship and socioeconomic

development in the most countries. Over two-thirds of the businesses worldwide are

believed to be controlled or managed by families’ enterprises taking to account half of the

Gross Domestic Products (GDP). In the countries like USA and Canada, family

businesses are very prominent. Approximately, 90% of all the businesses there are said to

be a family business. In Australia, half of the businesses are owned by a family.  On the

6
 7

other hand, other countries like India, family businesses are greatly needed in order for

the progression of their own country. It is not impossible that family-owned businesses

are really the foundation or what you called the ‘backbone’ of many economies around

the world. In Spain, supermarkets are the largest grocery channel where it has a

generating sales of 32.5 billion and grew year-by-year by 2.5% driven by eight biggest

competitors including Mercadonna, El Corte Ingles, Distributions Froiz, S.A., DIA and

etc. Most supermarkets in Spain are said to be family-owned business. For the

conclusion, Spanish family-owned supermarkets greatly affects the economic growth of

Spain providing different job opportunities and contributing to the GDP of the country.

According to Komulainen, A. and Siltala, S. (2016), The researchers compared the

two family business owner the Wallenberg and Ehrnrooth  Both families had same values

duty and hard work, both were in politics, both invested in emerging businesses, both

were in constant renewal, both had diverse businesses and both were very cautious with

their investments. Both had many children out of which at least two were chosen to run

the family businesses. Although the succession strategies differed, both chose the most

able ones among the children to run the businesses.Wallenberg and Ehrnrooth shared

similar ideas and values of duty, hard work, and diligence. But these were shared by their

peers in all protestant Europe at the time.Both families send many of their sons abroad for

education. This is a connecting point, although not a rarity in Europe in high society and

business circles.The Wallenberg dynasty was built by giving the family business position

to the first son to handle the mutual wealth of the foundations. However, the son had to

show his abilities in business competing against other candidates. Ehrnrooth succession
 8

strategy was to make many children and carefully choose the most competent sons to

handle the mutual wealth of the family.

Family enterprises’ existence has been dominating all over the world and has an

important role on economy and society of the whole country. As the year goes by, many

definition of family business has emerged but there was no degree to which clearly

satisfied what a family business really are. Some elements were highlighted when

defining family business such as ownership, family involvement, family control and the

intention of transferring the business to future generations. Even if some elements are

questionable, these elements present the focus variable that are crucial in describing a

family firm (Chrisman, Chua, & Sharma, 2005). Chrisman et al. also found out that

family business is classified not only by ownership, governance and control that retained

by the family but also by the succession of next generation. Villalonga and Amit

specified three main factors common to any family business:  First, one or more families

detain a significant part of capital (Villalonga & Amit, 2006). Second, family members

have significant control over the company that may include statutory or legal boundaries

over the voting right and the capital distribution among none family shareholders. Third,

top level management is bound to family members.

Family Business is seen as significant source for economic growth and development

in today’s world. Family businesses have the potential to outperform any other form of

business organization through their inherent synergies between capital and management.

Performance is an essential indicator of the organizational success and competitive

advantage of firms. If firms are able to identify the factors that determine improved
 9

performance, they could take advantage of their specific features. The purpose of the

research is to give insight in the determinants of family business that contribute in

meeting/exceeding performance objectives of the firm where a Structural Equation

Modelling is used for the analysis. (Bharti Motwani, 2015)

Family business teaching are important for family businesses as it is a key for a

family business to continue its legacy. The aim of this study is to determine the

perception of students in a university in Finland about family entrepreneurship.

According to Westhead and Howrth (2006), board of directors shouldn't only be members

of the family. Family-owned firms should hire more independent directors and outsiders

to widen the knowledge in strategic department. Based on the findings of the study, more

understanding on family entrepreneurship is needed rather than family business

management. The study shows that university students does not perceived family

entrepreneurship as a career opportunity as most of them do not see it realistic to start

their own business as family entrepreneurs. There is a need for business academic

education to keep the quality standards high. More knowledge is needed on how to

develop family business education from the views of students, teachers, and family firms.

Local Study

According to Adarna et.al (2017), the Department of Trade and Industry affirms that

99.6% of businesses in the Philippines are composed of small to medium enterprises, of

which between 80%- 90% are family-owned and these businesses are succeeded by the

heir of the founders. On the other hand, Chinese businesses are continuously spreading in
 10

the Philippines even though they only comprise 1% of the Philippine population. In order

for a family-owned business to continuously operate in the future, they will need a

successor. Succession is an indispensable concept when talking about family businesses.

However, millennial nowadays have their own minds in choosing the path that they want.

They want to explore multiple careers, relationships, lifestyle and technologies without

committing to any one path too soon. In conducting a survey, they input five main factors

that affect willingness to take over mainly, demographics-based perception, divided into

sex and birth order, predecessor’s trust in successor’s abilities and intentions, personal

needs alignment of successor, and rewards from the business. From that, researchers will

be able to determine the perceptions of the students regarding the said topic. They

surveyed Filipino- Chinese millennial successors in DLSU to gather information. The

result shows that birth order is highly significant where the eldest sibling has the

responsibility to take over their family business after pursuing his/her studies. All in all,

the five significant factors contribute to willingness and the perspective of the successor

about taking over family business is indispensable and over the years, the dynamics of

Filipino-Chinese business succession in the Philippines might change.

According to Santiago, A (2015) Business decline actually results from the failure of

family members to address the challenges brought about the change in the different life

cycle dimensions. In hindsight, arresting a downward trend necessitates varied strategic

approaches. While some family members may felt incapable of introducing innovation in

their business, the failure to act, by itself, was a guarantee of business failure.This study

brings attention to the need of family business owners to be more proactive in meeting
 11

the changing needs of their family business. Formula that worked before may not be

appropriate at a different time.

This research is based on the proposition that although in-laws may be warmly

welcomed into a family, they may hold a tentative position in the family business. It set

out to determine whether in-laws loosely belong to the general category of “family” or if

they deserve separate attention, at least in the Philippine setting. Following the logic of

Pieper and Klein (2007) who zeroed in on the individual as the basis of the “bull eyes”

approach in understanding the family firm theory, the decision of whether in-laws should

participate in the business thus can be seen as a personal one and can only be assessed on

a case-to-case basis. When one combines the logic of Pieper and Klein with the findings

of Stafford et al. (1999), the assumption is that in-laws whom families may consider a

valuable resource for the business must relate well with members of the founding family

for positive family and business outcomes.

Business groups are defined as "legally independent firms operating in multiple

industries which are bound together by a persistent formal and informal ties". These

business groups has caught the attention of many for it relative performance across

countries. The aim of this study is to relate the observation of the development of

business groups in the Philippines as well as to to show the relationship between the

dynasty model of household behavior and nature of business groups in the country. For

the conclusions, the results show that dynastic motives in family-owned business groups

are evident in the Philippines. However, family-based enterprises tend to lose out

completion when choosing the right person for a position such as managers among the
 12

family circle. The members must compete in order to show that they are the most capable

to take the role. Primogeniture was also observed wherein the only son is given the

highest position, bypassing the elder sister, and takes greater roles compared to the rest of

his younger (all female) siblings. (Daite, 2014).

Foreign Literature

According to Ann (2016), before the conglomerates and revolutions happened in the

18th Century, the presence of family businesses have already taken the world. Over the

past years, the success of Business Dynasty is greatly seen because of what it can bring in

one country in terms of the economic growth. Up to this day, they are a lot of family-

owned businesses that still operating smoothly and wealthily. Based on the Global

Family Business Index, several businesses that pass from generations from generations

are continuously developing to increase their global presence. Some of the founding

dynasties worldwide are Wal-Mart, Volkswagen, Berkshire Hathaway, EXOR, and Ford.

These popular businesses are persistently making an incredible work for the reputation

not only to for their business but also for their family’s honor. Wal-Mart owned by

Walton Family has a revenue of $485.651 billion, Volkswagen owned by Porsche Family

has a revenue of $261.6 billion, Berkshire Hathaway managed by Buffett Family earned

$182.2 billion while EXOR owned by Agnelli Family has a revenue of $151.1 billion and

Lastly Ford, owned by Ford Family has an earnings of $146.9 billion. This proves that

business dynasty has a great impact in today’s economy.

 13

According to Pollack, B. (2018) A family-owned business is any company owned by

two or more family members and the family holds majority control or ownership.Every

family has its struggles—like who gets stuck sitting next to Aunt Mimi at the next

holiday get-together.  But when you combine business with family, those challenges

become even more complex. companies included less experienced family members on

committees and boards, with the goal of nurturing the younger generation’s management

and business skills. It’s a training ground that provides the valuable experience needed to

move the family business successfully into the future. Family-owned companies have

another big advantage over non-family firms: almost three-quarters of family businesses

report stronger values and culture which can be leveraged as strengths in areas like

customer care, recruitment and employee retention.

Passing the family business to the next generation is not an easy resolve, there are

lots of consequence the business owner are facing and factors that need to consider before

making a decision. This will determine the fate of family’s lifelong business, there hopes,

dreams, ambitions, relationship and personal mortality. Managing a succession is a

crucial task that is more critical to securing private firm’s future especially in United

States. Other problems such as rising competition, government regulations, taxes and

other problem must handle properly because mishandling of plan and succession

management of the business will form the greatest threat in the survival of the business.

Many firms across the nation are facing the retirement or death of their founder or chief

executives without insufficient plans in succession and some firms that has plans, fail

because they mismanaged the succession planning process. It’s not surprising that 13

percent of the third generation make it to the end and only one-third of the business
 14

survive for second generation.( Craig E. Aronoff, Stephen L. McClure, and John L.

Ward)

According to Magnuson (2016), if we look at all the great companies’ history, almost

all of them are started by a powerhouse individual who stops at nothing to build a great

company. But love and idealism can cloud business judgment, effectively causing harm

in the end. When the company starts getting traction, the profits and benefits are

disbursed, along with family jobs. Just because a son or daughter or in-law is related does

not mean they are the best qualified for the job. Often, responsibility and ownership

shares are not clarified in writing, which allows entitlement and resentment to seep in.

Family feuds over money are not just for the Fords, DuPonts and Pritzkers. They happen

in every class. When the money and power struggle begins, any love and trust that held a

family together can be replaced by suspicion and hatred. Many family fortunes are lost in

three generations. Some family fortunes have withstood fighting, entitlement and family

war. Good examples are the Houghton family who founded Corning Glass in 1851, Wal-

Mart, Kohler, Bechtel, Ford and Mars Candy. Dynasties are not just something started

before our time by someone else. We each have all the tools we need to become the next

Hilton, Ford or Rockefeller. Everything we do starts today, in this moment. If you are

running a family business, always lead with clarity, transparency and trust. Because when

it works, there’s nothing like it on earth. 

According to Dalal (2018), teachings such as leadership must be passed down to the

next generation in hopes to make them better leaders for tomorrow. The difference

between a business model and corporate model cannot be questioned. The influence of
 15

values, ethics and experiences of the founders in the work culture makes the atmosphere

friendlier and people are more approachable. Leadership form each generation may share

a common heritage and same values but each generation may still differ when it comes to

the medium of command and approach, even so it is about leading the family business to

success. It is said that new generations may adopt a more democratic approach where

ideas are accepted more easily than the first one who would be focused on the

functionality of each position. It is said that family business who make it to the third

generation are lesser than 30 percent. Family learns together at home and the office,

continuing the family legacy makes the workplace and home one and the same. "A true

leader motivates one’s team to surge ahead with full confidence and is always there to

support and guide." Dalal (2018) stated.

Local Literature

According to a report provided by Credit Suisse Research Institute, family-owned

businesses continuously to dominate the entire business industry in the Philippines. They

also released about the country ranking 11th globally in terms of number of family runs-

firms. The research institute classified around 1,000 family businesses and review the

investment cases of the firms. The gathered data shows that ever since year 2006, family

businesses in the Philippines are dramatically growing by an average of 3.9% every year.

It is much faster compared to all countries in Asia Pacific Region except Japan. They also

noted that Family businesses are doing a great job in terms of the sales growth and

generating revenues compared to non-family owned firms. It seems that the investors are

much more concerned on how each family member are involved in the business rather
 16

than testing its level of ownership. An average of market capitalization of $5.6 billion are

said to be from the family-owned firms making it the sixth country with the highest

market cap in Asia Pacific (except Japan) and ranked 25th in the world. Top companies

in the Philippines including SM Investments Corporation, Ayala Corporation, LT Group

and Aboitiz Equity Ventures are run by families (Francia, 2017).

Based from Premier Family Consulting (2017), strengthening family businesses lies

on the premise that family businesses being a key driver to economic development are

also vulnerable to the unique and inherent challenges of being a family in business. The

Challenges of a Family in Business However, with the inherent tension between the

family and the business, family businesses has to waver through their unique challenges

such as The challenge of Succession and Longevity,The challenge of Managing Family

Dynamics,3. The challenge of Estate Preservation, and The challenge of balancing

between Family Welfare vs. Business Growth. There is a need to help them be organized

as a family and establish solutions to address their challenges; to encourage them to find

more sustainable ways to maintain their position and lay the groundwork to take

advantage of the opportunities of a more open market; to help them be prepared as the

economy of Southeast Asia changes.

The Filipino family plays a critical part in the economic, political, religious and

educational life of the people. "Family" wrote Keren Blankfeld in her article "Bloodlines

and Bottom Lines" published in Forbes magazine, "is at the core of many of Asia's

biggest and most far-flung conglomerates and some of its best-known brands." while luck

and genes have some bearing with family business success, the more significant factors in
 17

the prosperity of any enterprises are trust, talent, tenacity, technique, timing and

flexibility. Some family business have lasted for several generation with no end while

other are doomed. A country's stability and prosperity can be intricate tied to the strength

of families. (Lopez, 2016)

According to Cruz (2014), While it is evident that family dynasties dominate the

world of business in the Philippines and most parts of Asia,only two to three generations

is normally the rule for a family dynasty in both business and politics. The public

impression is that family businesses will eventually become extinct or, at least, will be

limited to small entrepreneurial ventures which is very far from the reality in the business

world. Family business continues, and will continue, to be the most dominant form of

business organization in the Philippines, in Asia, and surprisingly in the Western world

increasingly. It is also said that there is also evidence that family businesses can be

professionalized and become globally competitive while remaining a family business. In

fact, in times of economic downturns family businesses have proven to be more resilient

and capable of surviving volatile environments. Behind this is the reason that families are

not motivated by profit alone like professional managers. Many families sacrifice profits

because they view their family business as a legacy they have inherited and something

they would want to pass on to the next generation. For the Philippines to have rapid

economic growth in the future, the Filipino family businesses must eventually become

the primary engine of growth. This will require professionalizing family business

management and reconciling the family’s needs and desires with the demands of running

a successful, innovative, globally competitive business. It can be done.

 18

According to the study of PricewaterhouseCoopers (PwC)'s Global Family Business

Survey 2018, around 85 percent of businesses in the Philippines are family-owned, which

are mostly small and medium-sized enterprises(SME). This survey generated insights

from 2,953 family-owned firms across 53 countries and found out that Filipino family

business on the global scale are "conservative" for it only sticks to a single sector and

operates in a single country. PwC Philippines Assurance Partners Aldie P. Garcia stated

that majority of the family businesses in the country are still in the first-generation that

puts it on "survival mode". Family-owned businesses are more likely to expand into new

sectors and practices during the second and third generations of succession while in third

and fourth generations are more likely to expand overseas. PwC's study also showed that

there is a higher percentage of respondents who answered regarding digitalization

compared to having the values deeply rooted in a family businesses' identity. “If

technological innovation and disruption is being adopted for the sake of being adopted

without regard to the core values and without regard to the purpose of the organization,

that’s when conflict would arise between your spirit and your values and your

organization versus your tech-powered growth ambitions,” Garcia said. Family values

provides the direction of the business, while innovation and adoption of new technologies

serves as a way to get there.(Mogato, 2018)

 19

Theoretical Framework

Theories New Theory

 Resource-Based Theory – family  Business Dynasty affects the

businesses have high level of progress of the business through
performance because they have many bundle of resources
resources (Peruffo, 2017)

 Stewardship Theory – managers of

 Employees and Managers are
family business are motivated due to
motivated to work because of the
family’s tradition and culture (Peruffo,
Family’s culture and reputation
2017)
that affects the growth of the

 Agency Theory- an agent can operate in business

his or her interest, thus generating moral

hazard and adverse selection problems
 Interactions are present in a
(Nordqvist et.al, 2015)
family-owned business that makes
 Social-Capital Theory- addresses the the firm to grow and expand
importance of interaction and exchange
between individuals in a social network
(Nordqvist et.al, 2015)
 20

Figure 1. Theoretical Framework

Theories on Family Business

There are various theories regarding family business and through the help of these

theories, the researchers will be able to come up to the effects of business dynasty on

the progress of the business. In addition, the perspectives of the students will be also

included at the end of the research study to arrive in a definite and absolute result.

1. Resource-Based Theory

Resource-Based Theory is a theory that argues about why different

firms or businesses have a high level of performance and competitive

advantage, it’s because they have many different resources. Family-owned

businesses are said to be broad, multidimensional, multi-layered and

complex. They have multiple resources because many people are involved

inside the business that is why RBT is suited to further understand

business dynasty. Bunch of resources makes a business to have a

sustainable and consistent development and this will be possible if the

family involvement is active in business environment.

Theorists believe that family-business firms have an advantage in

terms of their unique and distinctive resources and capabilities in attaining

 21

a high level of value creation. The more you have the connection and

relation within and outside the organization, the business will be effective

and will continuously operate in many years. But on the other hand, it

might also have disadvantages when interaction between content and flow

will result in unbalanced exchange, the capital stock of the business might

suffer. Other studies show the impact of bunch of family resources on the

strategic decision of the firm. The result depicts that the business will have

a tendency to engage in franchising or other activities that will contribute

to the growth of the business.

2. Stewardship Theory

In stewardship theory, the agent is bounded by humanistic view

and characterized by a long-term perspectives, commitment, family values

and identification. In terms of family-business context, stewardship

approach implies that managers are motivated due to the family’s tradition

and culture. They feel that they have a responsibility to do in order for that

business to prosper and grow. Managers might also feel the sense of

belongingness which can be a driving force for them to work hard. As for

non-family manager working in a family business, are also involved and

committed to the firm’s success.

Stewardship theory may appear in the form of three specific

expressions: community, continuity and connections. Community is

referring to the family’s culture which can lead to commitment, cohesion,

 22

loyalty, and sense of responsibility. Continuity pertains to protecting the

wealth of the business or the resources of the family and the whole

organization and lastly, connections in the internal and external

environment like the stakeholders, investors, creditors, employees and

other people involved to benefit the business.

3. Agency Theory

Agency theory is perhaps the most widely acknowledged

theoretical approach to family firm behaviors (Jensen and Meckling 1976).

Traditional agency theory anticipates opportunistic behaviors: An agent 16

E. Peruffo in a contract can operate in his or her interest rather than the

interest of the principal, thus generating moral hazard and adverse

selection problems (Eisenhardt 1989; Jensen and Meckling 1976).

Traditional agency costs, which result from the so-called principal–agent

problem (or Type I agency problem), arise when ownership and

management incentives are not aligned, such that information asymmetries

and opportunistic behaviors lead to free-riding and shirking (Jensen and

Meckling 1976).

Beyond the economic losses, agency problems also create costs

associated with the need for monitoring, incentive systems, and

governance structures (Eisenhardt 1989; Jensen and Meckling 1976).

However, agency costs diminish when ownership and management

converge, because the principal’s and the agent’s interests align.

 23

4. Social-capital Theory

Social capital theory is another common theory that has recently

been used in family firm research. It addresses the importance of the

interaction and exchange between individuals in a social network. Social

capital can be defined as “the aggregate of the actual or potential resources

which are linked to possession of a durable network of more or less

institutionalized relationships of mutual acquaintance or recognition.

Nahapiet and Ghoshal (1998) define three dimensions of social capital:

structural, relational, and cognitive dimension. The structural dimension

describes configurations and patterns of linkages between people. The

beliefs, trust, norms, and obligations that connect people in a social

network are described by the relational dimension. The cognitive

dimension describes a shared language, interpretations, and systems of

meanings within a social network. In family firms, each dimension is

embedded in two ways, on one hand within the family and on the other

hand with external stakeholders.

 24

Conceptual Framework

PROCESS
INPUT OUPUT
1. Gathering Determining the
1.Demographic information Perception of
• Age (16-19) through interviews Grade 12 ABM
2. Students of
• Gender Formulating
(Female/Male) 2. University of the
questionnaires East- Caloocan on
Students who have 3. Conducting the
family business Business Dynasty
survey S.Y. 2018-2019
3. Factors of 4. Assessing the
Business Dynasty gathered data
5. Statistical
treatment of data
 25

Figure 2. Conceptual Framework

To have a clear execution of tasks involved in the study, the researchers used the

conceptual framework which comprises the input, process and output. The framework

begins with the input in which the researchers determine the demographic of the

respondents (ages 16-19 years old, male or female), factors of business dynasty and also

finding students who have a family business. Next stage is the process wherein the

researchers start to perform actions in order to come up with an output. It includes the (1)

gathering information through interviews, (2) formulating questionnaires, (3) conducting

the survey, (4) assessing the gathered data, and (5) statistical treatment of data. Finally,

the researchers will now arrived with the output which is determining the Perception of

Grade 12 ABM Students of University of the East- Caloocan on Business Dynasty S.Y.

2018-2019.

Null Hypotheses

Guided by the stated problems, the study will test the following hypotheses:

1. Peers were not able to influence and teach their successors the values and hard

works needed for the sustainable development of their business

2. Family businesses only survived from 2nd to 3rd generation, only some

family businesses can sustain the continuous changing preferences of the market.
 26

3. The business dynasty affects the progress of a business negatively because

there have been found many evidences that there are various disadvantages in

having your family around business.

4. Engaging into a family business will likely hinder a business than venturing

on a business alone or with other people.

Definition of Terms

Bloodlines - a sequence of direct ancestors especially in a pedigree (Merriam Webster,

n.d.)

Business Growth - The process of improving some measure of an enterprise's success.

Business growth can be achieved either by boosting the top line or revenue of

the business with greater product sales or service income, or by increasing the
 27

bottom line or profitability of the operation by minimizing costs (Business

Dictionary, n.d.)

Business Dynasty- happens when one family member takes over the owner’s position

and take part in managing the business (Bharti Motwani, 2015)

Business Organization – A business organization is an entity aimed at carrying on

commercial enterprise by providing goods or services, to meet needs of the

customers (Us Legal, n.d.)

Capital Distribution - any dividend or other distribution in cash or in kind made with

respect to any shares of, or other ownership interest in, an enterprise, except a

dividend consisting only of shares of the enterprise (Us Legal, n.d.)

Conglomerate - a corporation that is made up of a number of different, seemingly

unrelated businesses (Investopedia, 2018)

Declassified - to say officially that political or military information is no longer secret

(Cambridge English Dictionary, n.d.)

Descendant – one originating or coming from an ancestral stock or source (Merriam

Webster, n.d.)

Doom - to be the certain cause of someone or something having a bad end, esp.

to die or to fail (Cambridge English Dictionary, n.d.)

Economic Downturns – general slowdown in economic activity over a sustained

period of time (Business Queensland, 2016)

Enterprise – a really big business or company (King, 2015)

Entrepreneurship - the act of creating a business or businesses while building and

scaling it to generate a profit (Ferreira, 2018)

 28

Far-flung – extending over a wide area (Collins English Dictionary, n.d.)

Flexibility - The ability of a system, such as a manufacturing process, to cost

effectively vary its output within a certain range and given time frame

(Business Dictionary, n.d.)

Globally competitiveness – the set of skills that help someone be a productive member

of their community and the world (Participate, 2017)

Governance – a government's ability to make and enforce rules, and to deliver

services, regardless of whether that government is democratic or not

(Fukuyama, 2013)

Government Regulation - a law that controls the way that a business can operate

(Cambridge English Dictionary, n.d.)

Gross Domestic Product - the final value of the goods and services produced within

the geographic boundaries of a country during a specified period of time,

normally a year (The Economic Times, n.d.)

Intricate – very complicated or detailed (Oxford Dictionaries, n.d.)

Legacy – money or property which someone leaves to you when they die; an event or

period of history is something which is a direct result of it and

which continues to exist after it is over (Collins English Dictionary, n.d.)

Magnate - a person of rank, power, influence, or distinction often in a specified area

Predecessor - one that precedes, esp. a person who has previously occupied a position

or office to which another has succeeded (Merriam Webster, n.d.)

Primogeniture – the custom by which all of a family's property goes to

the oldest son when the father dies (Cambridge English Dictionary, n.d.)

 29

Prosperity - Stage in an economic cycle in which conditions of relatively low-

unemployment and high total income prevail, leading to high purchasing

power (Business Dictionary, n.d.)

Retirement - is when a person chooses to leave the workforce (Investopedia, 2018)

Statutory - Relating to a statute; created or defined by a statute; required by a statute;

conforming to a statute (The Law Dictionary, n.d.)

Stewardship - means you accepting your responsibilities (Bell, 2015)

Successor - One who succeeds to the rights or the place of another: particularly, the

person or persons who constitute a corporation after the death or removal of

those who preceded them as corporators (The Law Dictionary, n.d.)

Tenacity – the determination to continue what you are doing (Cambridge English

Dictionary, n.d.)

Top Level Management - consists of managers at the highest level in the management

hierarchy who responsible for welfare and survival of the organization

(Kalpana, n.d.)