1. Understanding Ressett’s Business Model for CIMA MCS February 2026

Ressett operates in the second-hand electronics market, focusing on the resale and refurbishment of personal computers and related accessories across Lamland. The company purchases both new and used devices in bulk from a range of sources including manufacturers, retailers, and resellers. These products are then resold to individual consumers, corporates, and public sector clients at competitive prices.

Ressett’s business model is platform-centric. It functions as an intermediary between sellers and buyers, adding value through quality assurance, standardized product grading, and competitive pricing. This model aligns with the digital and circular economy trends where sustainability and affordability drive consumer decisions.

From a CIMA MCS perspective, understanding this model is critical. It combines E2’s focus on business models and customer value, P2’s emphasis on cost control and value chain efficiency, and F2’s concern with financial performance and funding strategies. Candidates should be able to explain how Ressett creates, delivers, and captures value while maintaining stakeholder trust.

2. Financial Performance Insights – What Ressett’s Figures Reveal

Ressett’s financial statements show steady growth in both revenue and profitability, indicating operational efficiency and disciplined financial management. Revenue increased from L$197.2 million in 2024 to L$203.3 million in 2025, representing a 3 percent rise. More importantly, operating profit rose by 20 percent due to a reduction in administrative expenses and improved gross margins.

The company’s asset base also expanded by nearly 3 percent, largely due to investments in property, plant, and equipment. This signals capital investment in infrastructure or technology to enhance long-term capacity. Retained earnings increased by 4.5 percent, suggesting that growth is primarily funded through internal sources rather than new debt or equity.

For MCS candidates, these figures suggest a scenario where future questions could focus on capital investment evaluation, working capital management, and performance measurement. Understanding how Ressett balances growth with cost efficiency can help candidates apply financial ratio analysis, investment appraisal, and funding decisions effectively in the exam.

3. The Second-Hand Electronics Industry – Opportunities and Risks for Ressett

Ressett operates within the rapidly expanding second-hand electronics industry, a key part of the global circular economy. The market is driven by affordability pressures, sustainability awareness, and increasing consumer acceptance of refurbished devices. According to industry research, the global resale electronics market is expected to reach nearly USD 100 billion by 2025.

Key opportunities for Ressett include rising consumer trust in certified refurbished products, technological advancements in AI-based grading, and growth in B2B refurbishment contracts. However, the company must also navigate risks such as inconsistent quality standards, fragmented regulations, and growing competition from low-cost new devices.

For the CIMA Management Case Study, candidates must link industry dynamics to Ressett’s strategic decisions. For instance, diversification into high-performance or gaming laptops may offer margin growth but carries risks of warranty claims and reputation management. Understanding these external forces helps demonstrate commercial awareness and adds depth to analysis in the exam.

4. Strategic Issues and Management Challenges at Ressett

Several management challenges are likely to feature in the February 2026 MCS exam. The first is quality assurance and grading consistency across product lines. Industry reports show that inconsistent product descriptions and variable pricing can erode customer trust, leading to higher cart abandonment rates and reputational damage.

The second challenge is integrating new acquisitions such as ElectroMart. Ressett must manage cultural alignment, leadership style, and cost transformation while ensuring value creation from the acquisition. Issues like foreign exchange volatility, labor cost management, and sustainability reporting are also potential exam triggers.

Candidates should approach these challenges using frameworks such as stakeholder mapping, balanced scorecard, and the CGMA Cost Transformation Model. Strong answers will evaluate both the strategic implications and operational measures required to ensure continued growth and trust within Ressett’s business ecosystem.

5. How to Approach the Ressett Case in the CIMA MCS Exam

Success in the CIMA Management Case Study depends on applied thinking. Students must move beyond theory and write as finance managers working for Ressett. Every answer should link technical knowledge to the company’s context, industry realities, and stakeholder implications.

Start by understanding Ressett’s value chain: sourcing, refurbishment, resale, and aftersales service. Apply costing techniques such as target costing and lifecycle costing to evaluate product profitability. Use relevant IFRS standards like IFRS 15 for revenue recognition, IFRS 10 for consolidation, and IAS 38 for intangible assets.

Time management and answer planning are crucial. Spend the first 5–7 minutes identifying task requirements and allocating time according to marks. Each paragraph should demonstrate commercial insight, financial reasoning, and professional communication consistent with CIMA’s competencies.

Ultimately, to perform well, candidates must demonstrate that they can think like a management accountant within Ressett — balancing financial rigour, business judgment, and ethical responsibility.