The president of Digital Equipment Corporation discovered that his company was having a problem with counter-productive product groups who were working selfishly rather than cooperating with one another. To solve the problem, he combined the company's twelve U. S. product groups into three regional management centers. This solution is referred to as departmentalization by:.
a. location.
b. function.
c. product
d. customer.
e. objective.

a. location.

Explanation:

This solution is referred to as departmentalization by location or by territory as the president of Digital Equipment Corporation merged the company's twelve U.S. product groups into three regional management centers ( on the basis of region or location ) to eliminate the problem with counter-productive product groups with the help of regional manager who can specialize himself in the peculiar problems of his region to stop this selfishness.