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Rationalization

What is 'Rationalization'

Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in company size, a change of policy, or an alteration of strategy pertaining to particular products. Similar to a reorganization, a rationalization is more widespread, encompassing strategy as well as structural changes.

Explaining 'Rationalization'

Rationalization is necessary for a company to increase revenue, decrease costs and improve its bottom line. The following are examples of rationalization.

Product Rationalization

Product rationalization is an important part of managing a product’s lifecycle. If products are not rationalized, their numbers continue to increase, adding complexity and increased support costs to the company’s bottom line.

Applications Rationalization

Engaging in applications rationalization, especially during mergers and acquisitions, helps companies reduce costs, operate more efficiently and focus on supporting deal objectives, legal and regulatory issues, systems and process integration and business continuity.


Further Reading


Rationalization of financial statement fraud in government: An Austrian perspective
www.sciencedirect.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

An Empirical Study on the Effects of Industrial Structure on Economic Growth and Fluctuations in China <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ201105002.htm' />An Empirical Study on the Effects of Industrial Structure on Economic Growth and Fluctuations in China [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ201105002.htm'>PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

Rationalizing tax increment financing in ChicagoRationalizing tax increment financing in Chicago
www.tandfonline.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

Innovation strategies of industrial groups in the global crisis: Rationalization and new pathsInnovation strategies of industrial groups in the global crisis: Rationalization and new paths
www.sciencedirect.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

Enacting catastrophe: preparedness, insurance, budgetary rationalizationEnacting catastrophe: preparedness, insurance, budgetary rationalization
www.tandfonline.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

The government-firm relationship in postwar Japanese economic recovery: resolving the coordination failure by coordination in industrial rationalizationThe government-firm relationship in postwar Japanese economic recovery: resolving the coordination failure by coordination in industrial rationalization
books.google.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

Rationalization processes inside cultural sociologyRationalization processes inside cultural sociology
www.oxfordhandbooks.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

The end is nigh: Failed prophecy, apocalypticism, and the rationalization of violence in new religious eschatologiesThe end is nigh: Failed prophecy, apocalypticism, and the rationalization of violence in new religious eschatologies
www.oxfordhandbooks.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …

The rational-behavioral debate in financial economicsThe rational-behavioral debate in financial economics
www.tandfonline.com [PDF]
… suggests that there are few actual economic incentives for rationalizing financial statement fraud … Hence, a rationalization of financial statement fraud requires extension beyond economic benefits to … Thus, it may be concluded that it is rationalized by independently elected rather …



Q&A About Rationalization


When should you engage in applications rationalizations?

You should engage in applications rationalizations especially during mergers and acquisitions (M&A). Engaging in applications rationalizations helps companies reduce costs, operate more efficiently, focus on supporting deal objectives, legal and regulatory issues, systems and process integration and business continuity."

What do you need for rationalizing your products?

You need product rationalizations. Product rationalizations are important parts of managing the lifecycle of products. If you do not have product rationalizations, then the number of your products will continue increasing and adding complexity and increased support costs to your bottom line.

How can rationalization be similar to a reorganization?

Rationalizations are more widespread than just structural changes. They encompass strategy as well as structural changes.

What does rationalization lead to?

Rationalization leads to an expansion or reduction in company size, change of policy, or alteration of strategy pertaining to particular products.

What is rationalization?

Rationalization is a reorganization of a company in order to increase its efficiency.