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 ?
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.
It is expected that the two operations will continue to operate independently, maximizing franchise values, although it is likely that products and services will be rationalized according to core areas of expertise.
As a result, operating costs have been rationalized and current production levels are approaching budget of 800 tons of copper per month.
Other projects of the combined company in Eastern Europe are expected to be refocused or rationalized.
Rationalized the foregoing by selling the interests at Drumheller and Cherhill.
Michael Bohac was also promoted to the new position of Vice President of Information Technology to coordinate the continued implementation of the Company's rationalized information systems.
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.