Which statement describes a disadvantage of location grouping?

Which statement describes a disadvantage of location grouping?

• A. Quick adaptation to external factors
• B. Easy to meet local needs
• C. Duplication of resources and internal competition
• D. Clear accountability for regional managers

Answer: (C)

When you organize by location, each geographic area tends to build its own supporting functions to serve its local market. That leads to duplication of resources—separate marketing, HR, IT, and production teams in each region—which drives up overall costs. It also encourages internal competition, as regional units focus on their own performance and resources rather than collaborating, creating silos and conflicts over priorities and budgets. These effects reduce efficiency and alignment with the company’s broader goals, making this a clear disadvantage of location-based grouping. The other statements describe benefits—being able to adapt quickly to local conditions, meeting local needs, and having clear accountability for regional managers—so they don’t capture the drawback.

When you organize by location, each geographic area tends to build its own supporting functions to serve its local market. That leads to duplication of resources—separate marketing, HR, IT, and production teams in each region—which drives up overall costs. It also encourages internal competition, as regional units focus on their own performance and resources rather than collaborating, creating silos and conflicts over priorities and budgets. These effects reduce efficiency and alignment with the company’s broader goals, making this a clear disadvantage of location-based grouping. The other statements describe benefits—being able to adapt quickly to local conditions, meeting local needs, and having clear accountability for regional managers—so they don’t capture the drawback.