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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"It is imperative to maintain a continuous cooperation with all government and semi-government entities as well as the private sector in adopting the best practices in rationalizing the power consumption.
The first option can be quickly dismissed; occurrent dependence does not in itself involve anything that could function as the rationalizing element found in most doxastic explanations.
A recent cover story in Business Week describes how Procter & Gamble and other large consumer goods companies are rationalizing their product lines to achieve more profitable growth.
The minister pointed out that the meeting has adopted a number of measures and directives for boosting the control on the exchange rate, such as guaranteeing the flow of foreign currency in the banking system, avoiding infiltration of the gold and exports revenues to the black market and rationalizing the demand for foreign currency by banning exportation of some commodities.
milestone of Rs 550 billion in terms of rationalizing and the minister also cut a cake on the occasion.
Winston Ginez said that in rationalizing the routes, no new Certificate of Public Convenience (CPC) or franchises will be issued to bus operators.
Al-Husayn said that fees levy on water consumption plays a major role in rationalizing utilization, noting that ignorance of the cost of water production, distribution and treatment has contributed to a rise in water consumption in GCC Member States.
ISLAMABAD -- Prime Minister Muhammad Nawaz Sharif Thursday directed Finance Minister Ishaq Dar to ensure that the low income groups are protected at all cost, while rationalizing the electricity tariff.
The workshop aims at highlighting the role of designs and networks implementation in rationalizing the use of water, developing strategies and organizing long-term awareness programmes to disseminate sufficient awareness in communities on how to rationalize electricity and water, using modern technologies in rationalization and benefiting from successful experiences in the field of rationalizing the use of electricity and water.
KUWAIT, June 16 (KUNA) -- Rationalizing efforts in Mubarak Al-Kabeer Educational Area would contribute in reducing annual energy consumption by 50 percent, Director of Energy Efficiency Technologies' Program at Kuwait Institute for Scientific Research (KISR) Dr.
"Rationalizing" is taken to mean making the SDA facility much more of a liquidity management tool by the BSP and less of an investment outlet.