Question

Alana, the owner of a small dress-making establishment called Mantua Fab, decides to hire assistants for design, sewing, and other tailoring jobs. After Mantua Fab finishes basic design, Alana sends certain items of clothing to be embroidered and hemmed by another company in the same city. This strategy is referred to as

Answer 1

The strategy by the company is known as outsourcing.

What is outsourcing?

In Business, outsourcing means the company has hired or recruited another firm to perform a certain function required to complete the product. It may involve, manufacturing, HR services, marketing, embroidery, etc.

In the above scenario, a certain function required to complete the product is done by another company which is the process of outsourcing.

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