NOTES: write your personal opinion with essay below and answer the question also and put the answer in the last paragrph.       

Question:Trust is hard to build but easy to break.  Companies have to keep on improving to continue to have the trust of the consumers and stock holders. a couple of decades ago Coke changed its formula and they lost  much profit and the trust of the people. It took years for them to grab their market share back. However their competition.  Do you have an example?

Essay : write your personal opinion

  There are several types of trust in supply chain collaboration. The two important types of trust are distinctive in collaborative relations; reliability-based trust and character-based trust. Reliability-based trust is responsive to an organization's perception of a potential partner's actual behavior and operating performance. When supply chain partners' expectations are not met by one of the partners' performance, the overall collaborative relationships are affected harming the trust within. Therefore, the organization not meeting the supply chain partners' standard expectations will have a bad perception to be incapable of delivering as promised which leads to a bad reputation of being unreliable, then, the company is rated unworthy of trust in a collaborative relationship.

                Character-based trust relies on an organization's culture, leadership, and philosophy focused on partnership and total wellness not selfless behavior that can jeopardize others. This type of trust require each partners to be on board with the mission of protecting other partner's interest and creates an atmosphere that opens up communication. Manufacturers must have character-based trust to share new product information to its retailers with an understanding of information security. Otherwise, the information will leak to its competing manufacturers.

                An organization's partner may be reliably trusted upon their performance, but it requires character-based trust to fully develop collaborative relationship. Sharing information is not simple when the partners have sub-contracts with another competing firm. However, the partner will not jeopardize the collaborative relationship it has built over time. Due to the risk of information sharing, some companies opt to undertake actions that might be seen as a threat to partners. "For example, a manufacturer opening new distribution channels might threaten existing dealers. A situation arose when John Deere introduced a second line of lawn tractors and recruited Home Depot and other independent retailers, bypassing its traditional dealer network. In such situations, trust may be maintained through thorough explanation of the rationale and business case that drove such a decision." (Bowersox, Closs, Cooper, 2013)Reference:

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management. Retrieved from http://online.vitalsource.com/#/books/9781308001029