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

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'