1) Mat Jon Involvement
First and foremost, Mat Jon as the owner of the petrol station must realize that he should involve in the operation of the station. Even though he has this mindset of did not want to spend too much time at the petrol station, at least he must follow some sort of control mechanism by monitoring the operation rather than assigning Jamel to handle everything. Thus, a professional skepticism must always delivered by Mat Jon. He must not put too much trust in his nephew. This is due to the fact that Jamel could impose threat of perpetrating fraud as he has the power of control over the petrol station.
On the other hand, both Mat Jon and Jamel must understand the concept of agency relationship. This is due to the fact that, Mat Jon appointed Jamel to act on his behalf as an agent. The agency relationship also involves the fact that Mat Jon had given certain authority to Jamel for the purpose of operating the petrol station. So, Jamel must realize that his decision and action should always align with the interest of Mat Jon. Conflict of interest must be avoided so that goal congruence between both of them can be achieved. 2) Human resource management
Human capital could be considered as an important feature in order to make sure that the operation of the petrol station could run smoothly. Mat Jon must consider the principle of attracting, developing and retaining human capital. For the attracting purpose, among the perspective that should not be overlook is attitude. Operation personnel will spend their working hours communicating and serving customers. Their good attitude will be perceived by customers as an attracting factor that will create a ripple effect of repeated buying behavior. Currently, the petrol station is experiencing exaggerate competition from Caltex and Petronas. Mat Jon may lose their competitive advantage if he did not carefully take a corrective action as rivalry among competitors could be concluded as high. As an...
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