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 rationalization program] will be a stakeholder-based decision.
Based on that research, four broad categories of fraud rationalization are suggested in the Exhibit:
The SSS rationalization act may cover market vendors, according to Sen.
While a comprehensive tariff policy for industrial expansion including the medium and long-term measures is being developed, in the short term the immediate rationalization of tariff is being considered on 515 tariff lines.
Bassil said on the occasion that the water and energy rationalization aimed at spreading the culture of wise water consumption in order to halt energy waste.
Their conclusion is that a dialogue-based leadership that includes the employees is essential when rationalization measures are introduced.
PFC Energy examines these refining assets within the Atlantic Basin Refinery Rationalization Study, evaluating roughly 230 refineries with consideration of individual margin performance as well as an assessment of regional competitive dynamics, refiner financial performance, refinery strategic fit and levels of both upstream and downstream integration.
This category was the focus of significant rationalization efforts and can be used as a case study to evaluate the effectiveness of those efforts across the entire store.
It is slightly ironic that this "Americanization" came about under the aegis of international and national institutions such as the Organization for European Economic Cooperation (OEEC), the European Coal and Steel Union, and the Bretton Woods institutions--the irony of course being that the shift toward a focus on market solutions and continuous rationalization was very much dependent on the activities of non-market organizations or even cartels.
The rationalization of the human mind never ceases to amaze.
Summary: The National Agency for the Energy Use Promotion and Rationalization (APRUE) and the Local Development Bank (BDL) will launch Wednesday the Pro-air programme for the promotion of the LPG-fuel (liquefied petroleum gas)
Over the past 12 to 24 months, we can add another: "SKU rationalization" has become the new euphemism for deletion or delisting.