FLP 211. Operational Case Study (OCS) May Exam Deep Dive

Failed to add items

Sorry, we are unable to add the item because your shopping cart is already at capacity.

Add to basket failed.

Please try again later

Add to wishlist failed.

Please try again later

Remove from wishlist failed.

Please try again later

Adding to library failed

Please try again

Follow podcast failed

Unfollow podcast failed

FLP 211. Operational Case Study (OCS) May Exam Deep Dive

Listen for free

View show details

Host Kevin Gormley is joined once again by Alex Whelan from Kaplan to help candidates prepare for the May Operational Case Study (OCS) exam. Whether you're early in your preparation or refining your technique, Kevin and Alex provide practical insights to help you focus on what matters most: applying your knowledge to the case with confidence. Good luck to all candidates! Building on the popularity of their February episode, Kevin and Alex focus on the May case study scenario featuring SOPA, a family‑owned restaurant business operating in a competitive market. The discussion provides practical guidance on how students should interpret the pre‑seen, identify exam‑relevant issues, and approach answers across all OCS core activities. This episode is especially valuable for candidates sitting their first CIMA Case Study exam and transitioning from Objective tests to a fully integrated, scenario‑based assessment. It offers a concise but comprehensive roadmap for tackling the May 2026 OCS exam. Key Topics Covered Case Study Overview: SOPA SOPA is a family‑owned restaurant chain operating across nine locations.The business operates in a highly competitive hospitality sector with tightening margins.Strong revenue growth and profitability, but operational and strategic risks are emerging.Heavy reliance on customer reviews, staff morale, and brand reputation.Industry themes include: Rising labour and food costsLow consumer confidenceStaffing shortagesCost‑of‑living pressures Strengths and Risks in the Pre‑Seen: Positives Strong revenue and gross margin growth (outperforming the market)Healthy cash position and working capitalLoyal customer base and sustainability credentialsStandardised menus and processes Strengths and Risks in the Pre‑Seen: Risks & Weaknesses Declining customer reviewsHigh staff turnover and morale concernsHigh fixed‑cost baseDependence on single suppliersPotential over‑expansion risks Expansion & Strategic Decisions Potential exam‑relevant initiatives discussed in the pre‑seen included: Opening new restaurantsLaunching a ghost kitchenDeveloping a branded dips product lineEntering a new foreign marketExploring AI and digital ordering technology The move from B2C to B2B activities is highlighted as a significant operational and financial risk area that candidates should prepare to address. Exam Focus: Core Activities Breakdown Alex walks through all six OCS core activities, highlighting what candidates should expect and where SOPA‑specific issues may arise: Core Activity A – Costing Marginal costing vs absorption costingNew syllabus focus: Environmental and quality costingDigital vs traditional costing (apps, online ordering, IT support costs)Cost of quality (prevention, appraisal, internal & external failure) Core Activity B – Budgeting & Forecasting Incremental vs zero‑based budgeting (ZBB)Forecasting and seasonal trendsRolling budgets and beyond budgetingImportance of clearly explaining ZBB steps Core Activity C – Performance Management KPIs (occupancy rates, sustainability, quality, staff metrics)Variance analysis (including mix variances)Use of attachments and data in answers Core Activity D – Accounting & Reporting Reduced weighting but still examinablePPE decisions (buy vs lease)Inventory valuation (IAS 2)Capitalisation and depreciationImplications of sustainability investments (e.g. vertical farming) Core Activity E – Decision Making Relevant and incremental cash flowsOutsourcing vs in‑house production (dips, ghost kitchen)Decision trees and expected valuesLinear programming and constraintsWeighted average benefit analysis Core Activity F – Risk & Working Capital Inventory management (EOQ vs JIT)Working capital cycle (negative cycle at SOPA)Receivables emergence from B2B expansionFactoring and invoice discountingCash surplus management and over‑trading risks How the Exam Is Marked Alex explains CIMA's four assessment pillars: Technical understandingCommunication & professional toneUse of information provided (attachments)Application to the scenario Key advice Refer to SOPA frequently — name the company, people, products, and locations.Use clear sub‑headings and structured answers.Justify recommendations clearly.Use planning time effectively.No calculations required — focus on explanation and application. Exam Tips & Final Advice Expect questions around ghost kitchens, expansion, and B2B risksPractice with mock exams and review model answersFocus on structure, relevance, and professionalismRemember: you must advise SOPA, not write generic theory Useful Links Finance Leadership Program: https://enroll.cgma.orgCGMA Hub with Case Study Resources & Mock ExamsThanks for listening. It takes just a couple of minutes to share your feedback here. About Us The CGMA Finance Leadership Programme (FLP) is the online pathway to the prestigious Chartered Institute of Management Accountants' Professional Qualification. ...

No reviews yet