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Acellerate - May Pre-Seen Analysis

Acellerate - May Pre-Seen Analysis



IBTC lecturer, Pilisa Matyholo, has broken down the Operational Case Study Pre-Seen and highlighted some things you should know when preparing for the May Case Study exam. 


Here is what he had to say,




The May/Aug 2021 pre-seen has been out for a while now. This pre-seen provides information about a company known as Acellerate. Founded in 2002 and based in Everland, Western Europe. Acellerate is a local car rental company. They also offer a handful of ancillary services with an annual turnover of E$206m (-25%). The company operates a network of on-airport sales sites, which make up 68% of sales, and off-airport sales sites, which make up the remaining 32% of sales. 


After a slow start due to international competitors, the company experienced rapid growth between 2010 and 2019 by exploiting its home-grown credentials and commitment to the customer. A recent economic recession led to a sales decline of 25%. The car rental industry is not expected to recover from the recession until 2025, with an expected competitor shakeout. The industry is fragmented with 65% of the market held by five major companies, which operate under multiple brands.


Like many other industries, the car rental industry has been affected by disruptive digital technologies. E-commerce and the internet have played a significant role in changing the industry. Cars-as-a-service and connected technology are some of the key developments to arise in the industry.


Possible exam themes:


Based on the pre-seen analysis, Acellerate could explore the following strategies to achieve their objectives:


·       Acceleration of the change from Diesel & Petrol-powered cars for electric/hybrid cars

·       Introduction of new services such as tapping into the Cars-as-a-service business

·       Adoption of connected technology to improve fleet utilisation and reduce costs

·       Outsourcing of maintenance of vehicles to 3rd parties to improve efficiencies

·       Exploring new markets abroad.


Acellerate’s critical success factors include maintenance of its fleet, fleet management system, careful management of repurchase agreements, marketing, and high-quality service. Candidates need to constantly think of Acellerate’s objectives and recommend solutions that help achieve these.


What to do during the exam?

·       Plan: time management will be crucial, planning is the best tool to manage time

·       Use the information provided in the unseen, include the numbers provided to enhance your answers.

·       Structure your answers, make use of headings, write 3-4 line paragraphs

·       Ensure you relate your points to the scenario, make reference to applicable objectives e.g. cost reduction, improving profits, better fleet utilisation, improving the quality of the service.

·       Respond to all sub-requirements, even if you aren’t 100% comfortable with the applicable theory. Ensure your answers are logical and relevant.

In terms of revision in line with the CIMA Blueprints, the following areas are crucial:


P1 Key focus areas

  • Costing Systems
  • Budgeting
  • Forecasting
  • Short-Term Decision-Making techniques
  • Dealing with Risk & Uncertainty


E1 Key focus areas

  • Organizational Structures
  • Corporate Governance & Ethics
  • Novel Technologies
  • Operations
  • Sales & Marketing
  • Human Resources
  • Information Technology 
  • Various KPI’s


F1 Key focus areas

  • IAS 16 Property, plant, and equipment  
  • IFRS 16 Leases  
  • IAS 36 Impairment of assets 
  • IFRS 5 Non-current assets held for sale and discontinued operations
  • IAS 2 Inventories 
  • IAS 10 Events after the reporting period 
  • IAS 7 Statement of cash flows
  • Taxation
  • Working Capital Management


OCS candidates need to remember that to do well in the exam they will need to focus on three areas:


1.    Revision of P1, E1, and F1 (There are no shortcuts to this)


Make use of the CIMA OCS Blueprints as a guide. Application of technical knowledge remains the backbone of this exam.


2.    Familiarization with the pre-seen


Analyse the pre-seen with a specific focus on the business model, SWOT, PEST.


3.    Practice, practice and more practice


Work through the coursebook, past exam questions, and mock exams.  


Good luck for the exam, you’ve got this!