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 ?
4) Expansion of scope and coverage of Prime Minister's National Health Programme at a total rationalized cost of Rs 8.
5) Construction of Chitral - Garam Chashma - Doraha Pass Road at a total rationalized cost of Rs 8.
6) Dualization and improvement of old Bannu road measuring 83 km at a total rationalized cost of Rs.
7) Dualization and improvement of Pindi Gheb - Kohat road at a total rationalized cost of Rs 18.
Chevron has selected Harbinger to provide and maintain the rationalized supplier content we need for our common electronic catalog," said Jerry Jacobson, Manager of Purchasing Strategy at Chevron.
The electronic catalog, which combines rationalized content data from Harbinger with Ariba's powerful search engine, will provide us with a common process that supports multiple pricing structures for multiple locations, or even different suppliers for separate regions.
16, 1998--MarkeTraders, one of the top rated internet sites by Barron's magazine for investment research and active stock daytraders, introduces competitive, rationalized services pricing.
As a result, operating costs have been rationalized and current production levels are approaching budget of 800 tons of copper per month.
Effective July 1, 1998, the coal operations were rationalized by merging the two operating companies, and by converting royalty and third party loans payable into equity positions.
Rationalized the foregoing by selling the interests at Drumheller and Cherhill.
A rationalized company with a much stronger base of stores, Shirmax is currently expanding its plus-size division of ladies fashions through the creation of double and triple combo-stores, a strategy which has been shown to enhance sales through the cross-marketing of lifestyle lines, while increasing productivity and earnings.
Yesterday (December 20, 1995), Intel advised AEP that there would be no new orders for AEP as Intel rationalized its supplier base.