  Aims. We present molecular line observations of the southwestern part of the
IC 348 young cluster, and we use them together with NIR and mm continuum data
to determine the distribution of dense gas, search for molecular outflows, and
analyze the ongoing star formation activity in the region. Methods. Our
molecular line data consists of C18O(1--0) and N2H+(1--0) maps obtained with
the FCRAO telescope at a resolution of about 50'' and CO(2--1) data obtained
with the IRAM 30m telescope at a resolution of 11''. Results. The dense gas
southwest of IC 348 is concentrated in two groups of dense cores, each of them
with a few solar masses of material and indications of CO depletion at high
density. One of the core groups is actively forming stars, while the other
seems starless. There is evidence for at least three bipolar molecular outflows
in the region, two of them powered by previously identified Class 0 sources,
while the other one is powered by a still not well characterized low-luminosity
object. The ongoing star formation activity is producing a small stellar
subgroup in the cluster. Using the observed core characteristics and the star
formation rate in the cluster we propose that that similar episodes of stellar
birth may have produced the subclustering observed in the halo of IC 348.
