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 ?
Such explanations I call rationalizing doxastic explanations.
A rationalizing doxastic explanation is a statement that purports to give information about the determination of a subject's belief by maintaining that the determinants for the belief, in some sense of other, make the belief an appropriate one for the believer to possess.
It may be that not all doxastic explanations are rationalizing.
extra efforts in rationalizing such a huge amount, which would later be spent on other useful projects for the socio economic development of the country.
Cynthia Passmore-McLaughlin, President and CEO, commented, "Our exhaustive study of the business has resulted in a plan to transform Enesco by rationalizing our product lines around our best performing and most profitable merchandise categories, and producing an organizational structure properly sized to the scale of the Company's current business.
These decisions are in line with the process developed by ENDESA throughout the past years, of rationalizing the company's structure towards management and cost efficiency.
David Gerrard, Senior Vice President, Purchasing for USF, commented "To date we've been very effective in rationalizing our supplier base, as well as in creating strong sourcing relationships.
When people are highly involved personally, rationalizing an unwanted outcome may make it easier for them to cope as individuals, Jost says.
CPFL has met with considerable success in rationalizing its labor force and modifying many of the work rules under which its predecessor companies operated.
Rationalizing production, eliminating duplicative overhead costs and disposing of businesses not aligned with our core business strategy are important steps toward the achievement of these goals.
It is intended that the group will reduce its total debt by approximately R1 billion (US$220 million ) by rationalizing its assets and selling items not regarded as core holdings.
Brown to assist us in rationalizing Aurora's capital structure, allowing the company to continue the strong growth in these two core businesses.