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rationalization
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rationalization

Reorganization of a company to improve efficiency, productivity, and profitability. Although rationalization could in theory include expansion of aspects of a business, it had in the 1980s and 1990s become a byword for downsizing. Rationalization may involve a contraction of the supply chain, re-evaluation and restructuring of the brand portfolio, wholesale plant closures, or large-scale redundancies.



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