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 ?
Rationalization became an important topic for the SGF from the 1930s.
The first-time rationalization process will target portfolio products for improvement or elimination, ranging from 20% to 35% of the total SKUs offered.
Our hope may lie in the emerging realization of this reality and the emerging reality that does not need to preserve religious traditions as rationalizations for action.
Rationalization is a factor often viewed as out of the control of management and internal auditors.
KUWAIT, Jan 26 (KUNA) -- Arab Petroleum Exporting Countries (OAPEC) General Secretariat will organize a scientific conference to discuss rationalization of energy consumption in the oil refining industry options, to be held between February 3-5 in Bahrain, OAPEC Secretary General Abbas Al-Naqi announced on Monday.
2014 to undertake a comprehensive review of existing coal sources and consider feasibility for rationalization of linkages.
RAWALPINDI -- After the start of new educational year, Education Department Punjab has started the policy of rationalization in the province, giving forced retirement to the senior teachers and closing schools with lower number of students.
Ibrahim bin Obaid al-Mafaraji, Head of the AGCC electricity and water rationalization team said that all AGCC countries are keen on contributing to activities relevant to encouraging scientific research in electricity and water rationalization.
The sources told Online that this decision was made in the rationalization drive of the Zero-Rated Regime that started in April this year.
This essay combines the history of tourism with that of the Third Reich, underlining how much both were entrenched in developments engendered by the "grammar of rationalization.
Earlier this year, Goodyear's Italian tire plant was closed and commercial truck tire manufacturing discontinued at Dunlop's Birmingham plant as part of the company's European rationalization effort.
Most go through three distinct stages: the exhilaration stage, the remorse stage, and the rationalization and acceptance stage.