Trimayr CIMA MCS Preseen – May-Aug 2025

Welcome to this exclusive pre-seen analysis blog, designed to help you break down and understand the pre-seen material for the CIMA Management Case Study (MCS) May-Aug 2025 exam. This guide provides real-world industry insights, practical examples, and a deep dive into Trimayr, the company at the centre of your case study.

The exam will introduce unseen information, requiring you to apply your understanding of the pre-seen alongside key management accounting concepts. The ‘I Can’ statements outline what you need to be able to do, and this blog will help you connect the dots between the information provided and what you will be tested on.

Understanding Trimayr and the Hairdressing Industry

The hairdressing industry in Dazzland is a well-established and highly competitive sector, comprising over 52,000 salons. The majority of these are small, independently owned businesses employing fewer than ten staff. While there are some larger businesses that operate multiple salons, these are usually restricted to specific towns or cities. However, a few national chains dominate the industry at a broader level.

These national chains are split into two categories: those that own and operate their salons directly and those that function through a franchising model. The franchise model is particularly prominent, as it allows for brand expansion without the financial burden of owning and managing individual salons. The industry is segmented into three distinct categories based on pricing and service quality: upmarket, midmarket, and downmarket salons. Upmarket salons attract affluent customers willing to pay premium prices for high-quality services, midmarket salons strike a balance between affordability and quality, and downmarket salons cater to customers looking for basic hairdressing services at the lowest possible cost.

Hairdressing services extend beyond simple haircuts, with salons offering a wide range of treatments including colouring, chemical treatments, and scalp care. Many salons also retail specialised haircare products, typically premium brands that are not available in supermarkets, reinforcing their brand loyalty and customer retention strategies. The industry thrives on repeat business, as hair treatments such as dyeing and perming require ongoing maintenance. Additionally, customer loyalty plays a crucial role in salon success, with many clients preferring to stick with a specific hairdresser whom they trust.

Trimayr’s Business Model and Financial Performance

Trimayr was founded in the 1970s by Magda Trimayr, who initially gained recognition for creating innovative hairstyles that became popular among celebrities. Over time, she capitalised on her reputation to establish a chain of upmarket salons across Dazzland. In the 1980s, she expanded into the midmarket segment under the Trimayr Pop brand.

In 2005, Trimayr’s board made a strategic decision to transition from owning and operating salons to primarily franchising them. This shift allowed the company to reduce its direct operational risks while still maintaining control over branding and service quality. Today, Trimayr operates under two key brands: Trimayr Sheen, which is positioned as an upmarket premium service, and Trimayr Pop, which is a midmarket offering aimed at a broader customer base.

Trimayr’s revenue model is diversified, consisting of franchise royalties, product sales to franchisees, training fees, and company-owned salon revenue. Franchise royalties are the company’s largest income stream, contributing D$113.1 million in 2024, followed by D$52.3 million from product sales. The company also earns revenue from training franchisee employees and salon principals, reinforcing its commitment to maintaining a high-quality brand image. Additionally, Trimayr continues to own and operate 40 midmarket salons, generating D$62.4 million in direct salon revenue.

Financially, the company has been performing well, with a profit increase from D$47.1 million in 2023 to D$57.9 million in 2024. Compared to its direct competitor, Pallo & Troo, which also operates on a franchise model, Trimayr maintains a stronger financial position due to its diverse revenue streams and its continued involvement in direct salon management. However, investment decisions remain critical, as the company must determine whether to expand its company-owned salon base or continue growing through franchises.

How the Exam Tests You Through the ‘I Can’ Statements

The ‘I Can’ statements serve as a roadmap for the skills and competencies you need to master. This blog will provide a section for each ‘I Can’ statement, breaking it down into three key areas:

1. Understanding the Statement – A summary of what you need to know.
2. Applying It to Trimayr – A detailed application of the statement within Trimayr’s business context.
3. Possible Exam Scenarios – Examples of how the exam might test this area.

1. Evaluating Opportunities to Add Value

Understanding the Statement

The ability to evaluate opportunities to add value is crucial for ensuring long-term sustainability and profitability in any organisation. This involves identifying areas where the business can expand, improve efficiency, or create competitive advantages. Value addition may come through capital investment decisions, process improvements, pricing strategies, and digital transformation projects. Managers must be able to critically assess where and how to invest resources, ensuring that each decision aligns with corporate strategy and financial viability.

To add value effectively, financial managers need to consider capital investment appraisal techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period to determine whether a particular investment is financially sound. They also need to understand how digital ecosystems influence modern business models, ensuring that technological advancements such as AI-driven analytics, digital customer interactions, and online service extensions are leveraged for better customer engagement and cost efficiency. The relevance of Weighted Average Cost of Capital (WACC) also plays a role, as financing investment decisions must be made with a thorough understanding of cost implications and expected returns.

Applying It to Trimayr

Trimayr is at a crucial juncture where its business model, operational approach, and investment strategies must align with industry trends. As a leading franchise in the hairdressing industry, Trimayr’s ability to add value depends on franchise growth, company-owned salon profitability, product sales expansion, and digital transformation.

One of the key ways Trimayr can enhance its value proposition is by expanding its revenue streams. While franchise royalties remain its dominant income source, investing in direct-to-consumer digital sales of premium hair products could offer a lucrative opportunity. This would require an assessment of capital investment in e-commerce infrastructure, digital marketing, and logistics management. Similarly, considering the impact of digitalisation in service industries, Trimayr could develop an AI-driven online booking system or personalised virtual hair consultations, allowing customers to receive haircare advice remotely.

Another major decision for Trimayr is whether to expand its company-owned salons or focus entirely on franchising. If the company chooses to grow its franchise network, the pricing structure for franchisees, the selection of new locations, and brand consistency will be crucial factors to analyse. Alternatively, purchasing a competing salon chain to integrate into the Trimayr model may be a viable strategy, requiring careful capital investment appraisal.

Trimayr’s pricing strategies will also play a role in determining value creation. The company must decide how to position its pricing model for both product sales and salon services, ensuring that the upmarket and midmarket brands remain competitive while generating sustainable profit margins. The application of WACC will also be necessary if Trimayr seeks external funding for expansion through debt or equity financing.

Possible Exam Scenarios

1. A proposal is presented to invest in a new AI-driven customer relationship management system that integrates with the franchise network. You must assess the financial feasibility using NPV and IRR.
2. The company is considering acquiring a smaller chain of midmarket salons and integrating them into the Trimayr Pop brand. You must evaluate the potential risks and rewards.
3. Trimayr is planning to expand internationally, but there are concerns about the brand’s adaptability in a foreign market. You must assess whether this is a viable option.
4. The CFO is concerned about the high WACC due to recent debt financing. You must recommend alternative financing strategies.

2. Preparing Budget Information and Assessing its Use

Understanding the Statement

Budgeting is a critical tool for planning, control, and decision-making in any business. It allows companies to allocate resources effectively, ensuring that financial goals are met while maintaining operational efficiency. A well-prepared budget provides a roadmap for revenue and cost expectations, helping managers make informed decisions about investment, pricing, and cost management.

Effective budgeting requires gathering accurate data, forecasting revenue and expenses, and assessing how changes in external or internal variables affect financial projections. Understanding forecasting methods, such as time series analysis, rolling budgets, and zero-based budgeting, is essential for preparing realistic financial plans. Additionally, managers must interpret budget variances, identifying whether financial performance aligns with expectations or if corrective actions are necessary.

An often-overlooked aspect of budgeting is the behavioural impact. Managers must ensure that budgeting processes do not demotivate employees or lead to unethical practices such as overinflated revenue targets or cost-cutting at the expense of service quality. Budgeting also plays a role in communicating financial priorities to different stakeholders, ensuring alignment between senior management and operational teams.

Applying It to Trimayr

Trimayr operates in a highly competitive service industry, where financial planning is essential for maintaining profitability across both franchised and company-owned salons. Given the multi-revenue stream model, budgeting at Trimayr involves forecasting franchise royalties, product sales, and salon revenues, while also controlling marketing, training, and operational expenses.

One of the key budgeting challenges at Trimayr is ensuring that company-owned salons maintain profitability while the franchise network continues to grow. If the company plans to expand its product line or introduce new training programs, budgeting must account for the costs of development, marketing, and distribution. Similarly, digital transformation projects—such as implementing an AI-driven salon management system—will require capital budgeting decisions to ensure feasibility.

Possible Exam Scenarios

1. A budget variance report shows that salon maintenance costs have exceeded forecasts due to unexpected equipment failures. You must analyse the impact and recommend budget adjustments.
2. Marketing expenses have increased, but revenue growth has not matched expectations. You must determine whether the company should scale back marketing costs or adjust its pricing strategy.
3. A new training academy initiative is being proposed, but there are concerns about whether the investment is justified. You must prepare a financial projection to assess feasibility.
4. A major franchisee has reported lower-than-expected revenue, affecting Trimayr’s budgeted royalty income. You must determine whether to adjust royalty rates or provide financial support to struggling franchises.

3. Implementing Senior Management Decisions

Understanding the Statement

Senior management decision-making involves strategic planning, project execution, risk management, and performance evaluation. As businesses scale, they must navigate complex projects, financial risks, and stakeholder expectations, ensuring that decisions align with long-term corporate goals. This section tests your ability to apply project management tools, assess financial implications, manage risk, and ensure that high-performing teams drive execution effectively.

A critical aspect of this competency is understanding project management life cycles, which includes initiation, planning, execution, monitoring, and closure. Decision-makers must define project goals, allocate resources efficiently, and set performance measures to track progress. In capital-intensive industries, selecting suitable financing sources and understanding the risks associated with different funding structures (debt vs. equity) is also crucial.

Additionally, successful senior management relies on team leadership, collaboration, and risk mitigation strategies. Businesses must identify potential obstacles, such as regulatory compliance issues, operational bottlenecks, or market volatility, and develop proactive solutions to ensure the success of their projects.

Applying It to Trimayr

Trimayr’s growth strategy involves franchise expansion, direct salon operations, and training initiatives. Each of these elements requires structured project management to ensure efficient execution. If the company decides to launch a new digital booking system, for instance, the project life cycle must be carefully managed from initial concept development to full-scale implementation.

A significant senior management decision Trimayr faces is determining the right mix of franchised vs. company-owned salons. If the company wants to expand its directly owned operations, management must assess the feasibility of acquiring new salon locations, considering factors like location selection, staffing, equipment investment, and brand positioning.

From a financial perspective, Trimayr may require external funding to support strategic initiatives. This raises important questions about debt vs. equity financing. The CFO must consider Weighted Average Cost of Capital (WACC), interest rates, and shareholder dilution before selecting a funding approach. Moreover, any major investment must be accompanied by a comprehensive risk management strategy, including scenario analysis and contingency planning.

Possible Exam Scenarios

1. Trimayr is planning to expand into a new city, but funding options need to be evaluated. You must assess whether debt financing or issuing new equity is the best approach.
2. The company has implemented a major IT project (a new digital salon management system), but the rollout has faced delays. You must identify the causes and propose corrective actions.
3. A key franchisee has defaulted on payments, impacting projected revenue. You must determine whether to renegotiate contracts, provide support, or terminate the franchise agreement.
4. A high-profile executive has resigned, raising concerns about leadership continuity and team morale. You must recommend a succession planning approach.

4. Managing Performance and Costs to Aid Value Creation

Understanding the Statement

Business success is largely dependent on performance management and cost efficiency. Effective performance management ensures that individuals, teams, and business units operate efficiently, aligning with overall corporate objectives. This involves performance measurement frameworks, leadership development, cost transformation, and quality management techniques.

Cost management, in particular, is vital for sustaining profit margins and ensuring competitiveness. Organisations must continuously review cost structures, identifying opportunities for process improvements, waste reduction, and strategic cost transformation. High-performing businesses also leverage data analytics to track key performance indicators (KPIs), ensuring they maintain a competitive edge.

Leadership and team performance are also integral to success. Businesses must ensure that employee engagement, empowerment, and skill development contribute to achieving strategic goals. Recognising and addressing underperformance, setting the right leadership tone, and applying value management techniques all contribute to long-term organisational success.

Applying It to Trimayr

Trimayr tracks key KPIs, such as average revenue per customer, customer retention, service times, and staff turnover. Any fluctuations in these metrics could signal underlying operational issues. For example, a decline in customer retention could indicate dissatisfaction with services, requiring management to revise quality control and customer experience strategies.

Trimayr must also focus on cost transformation initiatives to improve profitability. One potential avenue is reviewing supplier contracts and product sourcing strategies for its haircare product line. If Trimayr can negotiate better terms with suppliers or source materials more efficiently, it could reduce costs without compromising quality. Additionally, investing in employee training could enhance service quality and efficiency, ultimately driving higher customer satisfaction and revenue growth.

From a leadership perspective, ensuring that franchise managers are aligned with Trimayr’s corporate values is essential. If some franchisees underperform, management must determine whether additional training, financial support, or contract terminations are necessary.

Possible Exam Scenarios

1. A drop in customer satisfaction ratings across multiple franchise salons requires an urgent service quality review. You must recommend an action plan to improve customer experience.
2. Labour costs have increased, reducing profit margins. You must assess whether Trimayr should revise its salary structure or implement cost-saving strategies.
3. A franchisee has complained about excessive royalty fees, affecting profitability. You must determine whether fees should be adjusted or if alternative support measures should be implemented.
4. A new competitor has entered the market, offering lower-priced services. You must suggest how Trimayr can differentiate itself without engaging in a price war.

5. Measuring Performance

Understanding the Statement

Performance measurement is crucial for monitoring business success and identifying areas for improvement. This requires quantitative financial analysis, risk assessment, and interpretation of performance trends. Businesses must be able to analyse financial ratios, assess profitability, and recommend improvements.

Additionally, businesses must manage risks associated with business models, ensuring that performance-related uncertainties are mitigated. Understanding how market conditions, competitor actions, and economic fluctuations impact performance is essential for long-term sustainability.

Applying It to Trimayr

Trimayr’s financial health is assessed through profitability ratios (e.g., net margin, ROE), liquidity ratios (current ratio), and efficiency ratios (asset turnover). These indicators provide insights into how well Trimayr is performing compared to industry benchmarks and competitors like Pallo & Troo.

Trimayr must also assess risks in franchise operations, supply chain disruptions, and financial performance uncertainties. If a major supplier increases prices, for instance, profitability could decline unless alternative sourcing strategies are implemented.

Possible Exam Scenarios

1. Financial ratios indicate declining liquidity, suggesting potential cash flow issues. You must propose strategies to improve liquidity.
2. A major supply chain disruption has increased costs. You must recommend cost-cutting or alternative sourcing measures.
3. Trimayr is considering a change in business model. You must evaluate how this affects profitability and financial stability.
4. Investors are concerned about declining growth rates. You must suggest strategies to enhance revenue and profitability.

6. Managing Internal and External Stakeholders

Understanding the Statement

Effective stakeholder management ensures smooth business operations and strong relationships. Businesses must communicate financial performance, negotiate contracts, resolve conflicts, and maintain regulatory compliance.

Stakeholders include franchisees, customers, investors, regulators, and employees. Companies must ensure clear and transparent communication, fostering trust and long-term partnerships.

Applying It to Trimayr

Trimayr must effectively manage franchise relationships, ensuring compliance with brand standards and financial agreements. Poor stakeholder engagement could lead to franchisee disputes, employee dissatisfaction, or regulatory penalties.

Possible Exam Scenarios

1. A franchisee dispute has arisen over contract terms. You must suggest negotiation strategies.
2. Investors require clarity on financial performance. You must draft a report to reassure shareholders.
3. A regulatory body has raised concerns about compliance. You must recommend corrective actions.
4. Employees are dissatisfied with management practices. You must propose HR initiatives to improve engagement.

Real-life Applications

1. Evaluating Opportunities to Add Value

Many global franchises use strategic investment appraisal techniques to drive expansion and improve profitability. For instance, McDonald’s has continuously evaluated whether to open company-owned outlets or expand through franchising. By leveraging NPV and IRR calculations, McDonald’s has successfully expanded into new markets while ensuring that investment decisions are financially viable.

Another example is Starbucks, which has incorporated digital transformation to create value. The company’s investment in AI-driven personalised recommendations via its mobile app significantly increased customer engagement and revenue. Similarly, Trimayr could use AI-powered customer insights to tailor services and increase loyalty.

2. Preparing Budget Information and Assessing its Use

Budgeting and financial forecasting are essential in industries where customer demand fluctuates based on trends. Take L’Oréal, a global beauty brand that uses rolling forecasts and zero-based budgeting to ensure financial agility. By adjusting budgets based on real-time market data, L’Oréal avoids overinvesting in underperforming products and capitalises on emerging trends.

A similar case can be seen in the hospitality industry, where hotel chains such as Marriott use dynamic budgeting to adjust pricing and expenses based on seasonal demand fluctuations. Trimayr could benefit from a similar budgeting approach, adjusting financial plans based on customer footfall, service demand, and industry shifts.

3. Implementing Senior Management Decisions

Successful businesses rely on effective project management and decision-making. One example is Tesla, which has navigated production bottlenecks and supply chain disruptions by adopting agile project management frameworks. Their ability to adapt production timelines and make data-driven decisions has ensured consistent growth in a competitive market.

Another example is Unilever, which manages risk in capital projects through scenario planning and financial sensitivity analysis. This approach allows the company to mitigate financial and operational risks before committing to large-scale investments. Trimayr could use similar project evaluation techniques when expanding its franchise network or launching new digital services.

4. Managing Performance and Costs to Aid Value Creation

Many companies continuously optimise performance metrics and cost structures to enhance profitability. Amazon, for instance, uses data analytics to track operational efficiency across its supply chain, ensuring that it reduces costs while maintaining customer service standards. Trimayr could implement a similar data-driven approach, using customer and salon performance metrics to identify areas for improvement.

In the fashion retail industry, brands such as Zara use lean cost transformation strategies to reduce waste and optimise inventory management. Trimayr could apply lean methodologies to streamline salon operations, reducing inefficiencies in staff scheduling, product usage, and service execution.

5. Measuring Performance

Performance measurement is crucial for businesses in competitive industries. Nike regularly assesses profitability, efficiency, and brand engagement metrics to optimise product launches and global market expansion. The company uses Key Performance Indicators (KPIs) to track revenue growth, operational efficiency, and supply chain effectiveness.

Similarly, Airbnb uses financial performance analysis to refine its pricing model and improve customer satisfaction. By analysing revenue per property, occupancy rates, and customer reviews, Airbnb makes data-driven decisions to enhance its market position. Trimayr could benefit from similar performance tracking, using customer satisfaction data and revenue trends to refine its salon operations.

6. Managing Internal and External Stakeholders

Stakeholder engagement is a key factor in long-term business success. Coca-Cola, for example, effectively manages relationships with bottling partners, distributors, and government regulators to ensure seamless operations across multiple markets.

Another example is Walmart, which has implemented supplier relationship management strategies to negotiate better pricing, improve inventory management, and reduce supply chain risks. Trimayr could adopt similar stakeholder management techniques, ensuring strong communication with franchisees, suppliers, and customers to enhance business relationships and maintain brand reputation.

Conclusion: Mastering the Pre-Seen for Exam Success

Understanding and applying the Management Case Study (MCS) pre-seen material is key to excelling in the May-August 2025 CIMA exam. Trimayr, as a business, presents various opportunities and challenges that require strategic analysis, financial evaluation, and operational insight. By mastering the ‘I Can’ statements, you will be able to tackle unseen exam scenarios with confidence, demonstrating strong decision-making, analytical thinking, and business acumen.

Throughout this blog, we have broken down each core competency, providing a structured approach to analysing the pre-seen material. We have explored:

• How to evaluate opportunities to add value through capital investment, pricing strategies, and digital transformation.
• The role of budgeting and forecasting in ensuring Trimayr maintains financial stability while managing franchise operations.
• Senior management decision-making and how to apply project management, risk assessment, and financing strategies.
• The importance of cost control and performance management, ensuring Trimayr sustains profitability and efficiency.
• How to measure financial performance using ratio analysis, risk assessment, and strategic insights.
• Effective stakeholder management, ensuring strong relationships with franchisees, customers, investors, and regulators.

Additionally, the Real-Life Applications section demonstrated how global businesses such as McDonald’s, Starbucks, Tesla, Nike, and Amazon implement these strategies in practice, reinforcing why these concepts matter in real-world business environments.

Key Takeaways for Exam Preparation

Thoroughly analyse the pre-seen: Understand the business model, financial performance, competitive landscape, and operational challenges.

• Apply structured thinking to unseen scenarios: Use frameworks such as SWOT, PESTEL, Porter’s Five Forces, and financial ratios to approach problems logically.
• Master financial and performance management techniques: Be prepared to evaluate investment decisions, cost structures, budgeting methods, and financial implications.
• Think like a business leader: The exam assesses practical decision-making, so focus on providing commercially viable solutions backed by data.
• Use the ‘I Can’ statements as a guide: These outline exactly what competencies are tested, so ensure you can confidently apply each one.

Final Words

Success in the MCS exam is not just about memorising theories, it’s about understanding how to apply them in a business context. By breaking down the pre-seen material into key focus areas and aligning them with exam requirements, you can approach the exam with clarity and confidence.

Stay strategic, analytical, and commercially aware, and you will be well-equipped to tackle any challenge the exam presents.

Best of luck with your preparation!