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 costs
- Low consumer confidence
- Staffing shortages
- Cost‑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 capital
- Loyal customer base and sustainability credentials
- Standardised menus and processes
Strengths and Risks in the Pre‑Seen: Risks & Weaknesses
- Declining customer reviews
- High staff turnover and morale concerns
- High fixed‑cost base
- Dependence on single suppliers
- Potential over‑expansion risks
Expansion & Strategic Decisions
Potential exam‑relevant initiatives discussed in the pre‑seen included:
- Opening new restaurants
- Launching a ghost kitchen
- Developing a branded dips product line
- Entering a new foreign market
- Exploring 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 costing
- New syllabus focus: Environmental and quality costing
- Digital 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 trends
- Rolling budgets and beyond budgeting
- Importance 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 examinable
- PPE decisions (buy vs lease)
- Inventory valuation (IAS 2)
- Capitalisation and depreciation
- Implications of sustainability investments (e.g. vertical farming)
- Core Activity E – Decision Making
- Relevant and incremental cash flows
- Outsourcing vs in‑house production (dips, ghost kitchen)
- Decision trees and expected values
- Linear programming and constraints
- Weighted 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 expansion
- Factoring and invoice discounting
- Cash surplus management and over‑trading risks
How the Exam Is Marked
Alex explains CIMA's four assessment pillars:
- Technical understanding
- Communication & professional tone
- Use 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 risks
- Practice with mock exams and review model answers
- Focus on structure, relevance, and professionalism
- Remember: you must advise SOPA, not write generic theory
Useful Links
About Us
The CGMA Finance Leadership Programme (FLP) is the online pathway to the prestigious Chartered Institute of Management Accountants' Professional Qualification. Find out more about the FLP at https://enroll.cgma.org/
Get in touch with show host Kevin Gormley via LinkedIn.
Contact the podcast team at podcast@aicpa-cima.com
This is a podcast from AICPA & CIMA, together as the Association of International Certified Professional Accountants. To enjoy more conversations from our global community of accounting and finance professionals, explore our network of free shows here.
