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 ?
A woman can rationalize vandalizing her ex-boyfriend's car as acceptable behavior based on the circumstances at the time, such as his failure to return phone calls or too quickly becoming romantically involved with another woman.
Marshall justifies his psychological abuse of his wife by telling himself that Andrea was "relieved that someone was finally going to take responsibility for my aloneness." Patient and understanding, Andrea rationalizes:
Following the Ministry of Energy advice Oil and Gas Regulatory Authority invited Expression of Interest (EoI) from reputed firms of chartered accountants to ascertain the actual LPG production cost of producers, LPG marketing, distribution and transportation costs of LPG marketing companies and their distributors keeping in view relevant factors and in order to rationalize the LPG prices as per LPG Policy 2016.
The TRABAHO bill, which has been approved on third and final reading at the House of Representatives, would gradually lower the corporate income tax to 20 percent from 30 percent currently, and rationalize fiscal incentives.
The participants will discuss a number of topics related to housing joint works including the sustainability in housing project and use of modern system to rationalize housing projects.
Global Banking News-12 May 2008-Central bank of Bangladesh to rationalize forex transactions(C)2008 ENPublishing - http://www.enpublishing.co.uk
This contract win shows that our strategy to use our financial and management resources to reduce costs, increase automation and rationalize our global manufacturing capacity is positioning Superior to take advantage of these opportunities."
We have built a Web-enabled deal processing engine that will help rationalize a fragmented, paper-intensive and illiquid marketplace."
They were not selling on any valuation parameters that you could rationalize. And as you begin to pull back to reality, and companies basically either go out of business or get bought up or don't have access to capital, you're not going to see the large technology companies selling at the same multiples they have been.
Criminals frequently employ these defense mechanisms to rationalize their actions, to project blame onto someone or something else, and to minimize their crimes.
Observation: It is difficult to rationalize this holding.
While private insurers are moving to HMOs and pre-paid plans that attempt to rationalize expenditures, I get just a bit itchy when I am told that the federal government has got a grand plan.