Question

CPW (Cereals Partners Worldwide) is a ________ designed from the start to be a global business. It joined the cereal manufacturing and marketing capability of General Mills with the distribution clout of Nestlé.

Answer 1

CPW (Cereals Partners Worldwide) is a joint venture formed by General Mills and Nestlé to combine their cereal manufacturing and marketing expertise with an extensive distribution network, creating a global business presence.

Step-by-step explanation:

CPW (Cereals Partners Worldwide) is a joint venture designed from the start to be a global business. It represents a strategic alliance that combined the cereal manufacturing and marketing expertise of General Mills with the distribution capabilities of Nestlé. Joint ventures like CPW are formed when two independent companies decide to undertake a business project together by pooling their resources for mutual benefit, leveraging each company's respective strengths. In this case, General Mills brought its knowledge of cereal production and marketing to the partnership, while Nestlé contributed its extensive global distribution network. This collaborative effort allowed CPW to quickly establish a presence in the worldwide cereal market.

Answer 2

The correct answer is ''joint venture''.

Step-by-step explanation:

A joint venture is the name given, in the field of economics, to the term that refers to the strategy done by companies in where a specific situation is created giving place to the origin of a business entity owned by two or more companies who shared together the risks and benefits of that fusion between them.

On the other hand, Cereals Partners Worldwide, or CPW, is a joint venture between General Milss and Nestlé created in 1991 with the purpose of producing breakfast cereals with the manufacturing and marketing capability of General Mills and the distribution clout of Nestlé.