rationalisation

• What is the definition of rationalisation in business?

  Reorganisation to increase efficiency
• What is a common outcome of rationalisation?

  Reduction in business size
• What did Ford stop producing in the UK as part of its rationalisation?

  Fiesta
• Why might a business trim its product range during rationalisation?

  To focus on maximizing sales
• What product line did Boots the Chemist discontinue?

  Pet food
• How is the NHS trying to increase efficiency?

  By computerising patient records
• What negative effects can rationalisation have on employees?

  Uncertainty and job loss
• What can resistance to rationalisation lead to?

  Industrial action
• What must be clear in rationalisation schemes?

  Objectives and means of achieving them
• What are the advantages of outsourcing?

  • Reduced staffing costs
  • Well-trained staff provided
  • Reduced workload and stress
  • Less investment risk
  • Lower capital needs
  • Increased profits for R&D
• What are the disadvantages of outsourcing?

  • Poor customer service potential
  • Demotivation of existing employees
  • Uncertain quality of production
  • Difficulties with JIT systems
  • Communication breakdowns
  • Loss of data security
  • Lost tax revenues from offshoring
• What is the definition of outsourcing?

  Involvement of outside suppliers in activities
• What types of tasks can outside suppliers handle in outsourcing?

  Phone enquiries and production of components
• What is a potential consequence of outsourcing jobs overseas?

  Replacement of jobs with overseas employment
• How can outsourcing lead to increased efficiency?

  By allowing outside businesses to work at lower costs