Disadvantage of location grouping?

• A. Duplication of resources can occur
• B. Rapid decision making
• C. Divisions may compete against each other and forget the organisation's objectives
• D. Easy cross-division collaboration

Answer: (C)

Organizing by geographic regions gives managers close to their local markets, which helps quick responses. But the downside is that divisions may focus on their own local success and compete for resources, losing sight of the organisation’s overall objectives. This can weaken corporate coherence, lead to inconsistent strategies across regions, and make it harder to share best practices. While duplication of resources can occur in this setup, the more fundamental issue is that local self-interest can overshadow the company’s broader goals. Easy cross-division collaboration isn’t a natural outcome of location-based grouping unless there’s strong integration.