Vishal Khanna Jewellers does retail business of jewellery at a very large scale. The firm has to pay to lot of attention to advertisement. The owners of the firm are aware that if they spend more time on advertisement, some other important activities are left pending. One of the partners of the firm suggested that if the job of advertisement is handed over to some Advertising Company, they might be relieved of that important activity. By doing so, they will get benefit of specialisation and their expenditure on this activity will be less also. The firm implement this, which gave favourable results.
(a) Identify the emerging mode of business discussed in the above para.
(b) Also explain any three other non-core business activities which can be done from outside organisations.

Explanation

(a) The emerging mode of business is -'Cutsourcing of Services'. In this case the firm is outsourcing the advertising services.
(b) Three other non-core business activities which can be outsourced are:
(i) Financial services, Business firms outsource their financial activities like issue of shares, issue of debenture, raising loan from financial institutions, investment of funds in securities, etc. These financial activities require specialised knowledge which a business firm may not have.
(ii) Courier services, Courier services work as private specialist postal service. There are a number of courier services who carry business letters, parcels and goods to various destinations at comparatively cheaper rates with safety.
(iii) Customer support services, Customer support services are after services, i.e, handling diverse complaints from their customers, Now-a-days, various business firms do not maintain their own service department but they hire the services of some outside agencies who carry out the customer support services.