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 DOF said the fiscal incentives rationalization bill was one of the few fiscal measures included in the Aquino administration's list of priority bills.
In my 30-plus years in retail, I've seen the pendulum swing both ways--proliferation at some times and rationalization in others.
The rationalization of commerce or distribution became a recurring topic in the Swedish trade press and in parliamentary enquiries from the early 1920s.
Where the rationalization comes is the beginning of the train of thought that the last 12 months were really just about getting back to normal.
In addition to the capital savings from reduced inventory, SKU rationalization can positively affect a number of other financial metrics that are closely monitored by the retail and investment community.
The rationalization process identifies the performance of every SKU in the portfolio.
The rationalization will include the Swedish mills in Klippan, Lessebo and Molndal as well as Caldwells in Scotland, and Klippan plans to cut a total of 103 jobs.
Effective rationalization requires thorough planning and analysis.
The current rationalization plan calls for eliminating 27,000 jobs by the end of fiscal 2002 from the combined 128,000-strong workforce which NTT East and NTT West had at the time of the July 1999 breakup.
I am especially indebted to the thought of Emanuel Levinas (among others) who has exposed for me the nature of theological reflection as it is done even in the radical context of post-Shoah theologies: all explanations are rationalizations after the act.
Some investigators believe a strong moral code can prevent individuals from using rationalization to justify illicit behavior.
I take drugs because I want to win" is another common rationalization of the drug abuser.