What is a disadvantage of location grouping?

Choosing the option that highlights inefficiencies through resource duplication as a disadvantage of location grouping is insightful. When businesses use location grouping to organize their operations, they often establish multiple facilities or branches in different regions to serve local markets. While this can allow for more tailored approaches to customer needs, it can also result in the duplication of resources.

For instance, each location might require its own management team, administrative staff, and even production facilities. This spread of resources can lead to higher operational costs and inefficiencies, as similar functions may be repeated across different sites instead of being consolidated into a single, efficient operation. Additionally, if these separate locations do not effectively coordinate with each other, the overall effectiveness of the business can suffer, leading to increased costs and decreased productivity.

Thus, while location grouping has specific advantages, such as potential better service for local markets, the drawback of resource duplication highlights a significant challenge that organizations must consider when deciding how to structure their operations.