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 ?
Appealing to higher authorities are attempts by the suspect to rationalize the behavior as done on behalf of others, rather than narcissistically motivated.
However, investigators who can rationalize suspects' actions, project the blame onto others, minimize their crimes, and provide viable masons for suspects to tell the truth are well on the way to obtaining confessions.
It was crucial for us to rationalize our custody operations because of our considerable fund growth and the Bank demonstrated that it has the systems, infrastructure and team to make this possible.
Although the complex tasks ahead of us won't be accomplished overnight, the urgency to rationalize is clear.
These transactions were intended to rationalize the ownership of MSV and TerreStar by creating a single public entity in control of TerreStar, and a single public entity in control of MSV.
and should not waste its money on Compaq and those that tried to rationalize an outdated set of computer offerings (servers and desktop).
Reynders, President and CEO of aaiPharma, "This transaction represents a small but important step in our initiative to rationalize and simplify our business.
BOSTON -- Companies are increasingly recognizing that complexity in their sell-side channel is a customer-driven business requirement and leading companies are embracing rather than seeking to rationalize this complexity, says a new AberdeenGroup report.
The RulesPower modeler automatically identifies gaps, inefficiencies, and errors in the rules and workflows to help business analysts rationalize the business logic to achieve desired business results.
Leading analyst firm Gartner, in a recent survey of CIO resolutions for 2004, reported on the challenge of holding down costs while innovating for the future and cited as top 2004 priorities the need to maintain cost disciplines, rationalize and consolidate further.
9% EBITDA margin, as the company has been able to rationalize its cost structure.
While Gonzalez's arid prose may strike some as undernourished, he's wise to be so unsentimental given how his own family rationalizes their cruelty with sensational stories and superstitions.