Trust in starting a business can be grouped into two categories; internal trust and external trust. A company's reputation is based on comparative analysis with its competitors (Kim 2014, pp.838-840). Trust determines the behavior of stakeholders towards a company. Consumers prefer to spend more on brands they consider trustworthy (Sohn and Lariscy 2015, pp.242). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay This simply means that competitors have the upper hand compared to your product. Customers turn to products from competing brands due to feelings of betrayal (Fennis and Stroebe 2014, pp.109-120). Talent may also opt out and choose to work for competing brands to safeguard their “personal” reputation (Sohn and Lariscy 2015, pp. 237–259). The total effect of all this is bad business for the company. If a company loses skilled labor, investors and customer loyalty, the company is doomed to die of bad business which ideally is characterized by poor sales and huge losses for the company. business. Danone is currently planning to cut costs by $1.1 billion over the next three years as its turnaround is taking longer than expected (Vidalon, 2017). In the same note, the company is going through a difficult time in China because customers no longer trust the organization. This loss of trust is likely to continue to harm the organization given the sensitivity of formula. Company reputation is used by companies when evaluating their overall performance. Having a strong brand image gives an organization an advantage over its competitors. On the contrary, a bad reputation leads to compromises that cost the company huge losses. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Personalized Essay According to Fennis and Stroebe (2014, pp.112), consumers prefer to spend more on brands they consider trustworthy than on products from a company that frequently makes headlines for cases of fraud. For this reason, a company's financial performance is directly linked to its reputation. The company's exposure and resulting tarnishing of its reputation had a positive impact on its competitors, including Nestlé..