rationalization

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Rationalization

The process of reorganizing and overhauling a company's operations, policies, and anything else needed to make the company more efficient. Rationalization is thought to be more widespread than a reorganization; it may involve closing some operations while expanding others. It usually involves a shift in investment or other policy. Rationalization is intended to improve a company's profitability.

rationalization

the restructuring of a firm or industry to enable it to become more efficient or to reduce OVERCAPACITY. In some cases this may involve the firm in closing high-cost plant and concentrating production in larger, more modern plants; or it may involve the streamlining of a firm's organizational structure and reducing overhead costs. In the context of an industry rationalization may require firms to merge, or inefficient firms to leave the industry leading to higher levels of MARKET CONCENTRATION. See PRODUCT RATIONALIZATION. DIVESTMENT.

rationalization

the reorganization of an industry (or firm) in order to enable it to use its resources more efficiently Rationalization usually involves the closure of high-cost plants (either through the merging of firms or their exit from the industry), which then allows output to be concentrated in plants of MINIMUM EFFICIENT SCALE and enables a better ‘balance’ to be achieved between industry supply and demand by eliminating EXCESS CAPACITY. Within a firm, rationalization may involve streamlining its organizational structure in order to reduce overhead costs. See also PRODUCTIVE EFFICIENCY, ORGANIZATIONAL SLACK.
References in periodicals archive ?
To rationalise, unify and retire (where applicable) the current interfaces to the SRS.
In conjunction with the adjustment process Perlos would re-arrange and rationalise the antenna production in Malaysia and China, and supporting functions in Sweden and Singapore.
MUSCAT: The Rural Areas Electricity Company yesterday launched its first campaign to rationalise electricity consumption and observe safety rules.
Eoee1/4EoWith the rising number complaints of high energy bills and the excessive use of electricity, it was necessary to seek new ideas that would help change the daily routine of our lives and adopt modern styles rationalise power consumption,Eoee1/4A[yen] Engineer Hamed said.
NORDIC BUSINESS REPORT-29 January 2002-Apoteket to rationalise dose packing operations (C)1994-2002 M2 COMMUNICATIONS LTD http://www.
This change in ownership is part of the process to rationalise the corporate structure, making the holdings of Endesa in its Chilean subsidiaries both, simpler and more efficient.
The closure is further proof of Sappi's commitment to rationalise its production facilities and to integrate its global paper making network to source products for customers from the most appropriate mills and to transfer grades for the optimal use of our paper machines.
NORDIC BUSINESS REPORT-23 March 2004-Daloon A/S rationalises, closes factory in Denmark(C)1994-2004 M2 COMMUNICATIONS LTD http://www.