Strategic Business Management: 2025 Syllabus Updates

Chapter 1: Strategic Analysis

The Workbook introduces several new concepts in Chapter 1, starting with ABCD+ technologies. This acronym represents Artificial Intelligence (AI) and Automation, Blockchain, Cloud computing and Cybersecurity, and Data and Digital transformation. These technologies are revolutionising organisations and require adaptation to maintain competitiveness and meet customer needs.

Artificial Intelligence is defined as advanced computer systems performing tasks traditionally requiring human intelligence, such as learning, reasoning, and pattern recognition. The syllabus now includes a more in-depth exploration of AI, covering its applications in business strategy, decision-making processes, and potential ethical considerations.

Blockchain is introduced as a decentralised and immutable distributed ledger technology, enhancing security and transparency in various applications. The syllabus expansion includes detailed explanations of both public and private blockchains, their differences, and potential use cases in various industries.

The chapter also covers big data, referring to datasets exceeding typical database software capabilities. Students will now learn about the challenges and opportunities associated with big data analytics, including data collection methods, storage solutions, and analysis techniques.

Digital assets are explored, encompassing electronic content that provides value to organisations, including digital media, documents, websites, and cryptocurrencies. The syllabus now includes a comprehensive overview of different types of digital assets and their potential impact on business models and financial reporting.

Sustainability is another key addition, involving environmental and social focus to improve lives and the planet long-term. The chapter introduces Environmental, Social, and Governance (ESG) factors, which are increasingly important to investors in assessing business value. Students will now study various sustainability frameworks, reporting standards, and their integration into corporate strategy.

Chapter 3: Strategic Implementation

Chapter 3 introduces the Transition Plan Taskforce (TPT) Implementation Guidance, established in April 2022 to support organisations in creating credible transition plans for achieving net-zero. The guidance outlines key planning stages, including baselining current positions, setting ambitions, developing action plans, and ensuring accountability.

The syllabus now provides a detailed breakdown of the TPT Implementation Guidance, covering:

1. Preparing a credible transition plan:
   • Baselining the entity's current position
   • Setting clear objectives and GHG reduction targets
   • Developing comprehensive action plans
   • Ensuring accountability through monitoring and reporting
2. Disclosure of transition plans:
   • Alignment with TPT's guiding principles of ambition, action, and accountability
   • Structuring disclosures around five key elements: objectives, strategy, engagement, metrics, and governance
   • Frequency of updates and integration with existing reports
3. Stakeholder use of transition plans:
   • Management and board internal communication
   • Investor alignment and decision-making
   • Government and regulatory evaluation of net-zero progress
   • Consumer assessment of climate ambition progress

The chapter also emphasises the importance of cybersecurity, defining it as tools, policies, training, and technologies aimed at protecting an organisation's and user's assets from cyber-attacks. It highlights the need for cybersecurity assurance across supply chains, from supplier onboarding to the end of contracts.

The syllabus expansion includes:

• Detailed exploration of cybersecurity risk assessment methodologies
• Best practices for implementing robust cybersecurity policies
• The role of employee training in maintaining cybersecurity
• Specific considerations for cybersecurity in cloud computing environments

Chapter 9: Information Strategy

Chapter 9 introduces m-commerce, referring to commercial transactions conducted on mobile devices. It outlines three main areas: browser/web-based platforms, mobile apps, and in-person payments using mobile phones.

The syllabus now provides an in-depth analysis of each m-commerce area, including:

• Detailed case studies of successful m-commerce implementations
• Exploration of mobile payment technologies and their security implications
• Discussion of the impact of m-commerce on traditional retail business models

The chapter also discusses the role of IT in competitive advantage, noting that IT innovations can create temporary advantages. However, rapid technological change often erodes these advantages, necessitating continuous adaptation.

The syllabus expansion includes:

• Frameworks for assessing the strategic value of IT investments
• Case studies illustrating both successful and unsuccessful IT-driven competitive advantages
• Discussion of the challenges in maintaining IT-based competitive advantages in rapidly evolving markets

Artificial Intelligence is further explored in this chapter, emphasising the need for businesses to develop effective AI strategies, particularly in generative AI, to remain competitive.

The syllabus now covers:

• Detailed exploration of different types of AI (e.g., narrow AI, general AI, superintelligent AI)
• Practical applications of AI in various business functions (e.g., marketing, finance, operations)
• Ethical considerations in AI implementation and decision-making
• Frameworks for developing and implementing AI strategies

The chapter concludes with an updated discussion on cybersecurity controls, referencing the National Cyber Security Centre's "Ten Steps to Cybersecurity" guidance and the ICAEW's Cyber Security Resource Centre.

The syllabus expansion includes:

• Detailed analysis of each of the ten steps in the NCSC guidance
• Practical exercises in implementing cybersecurity controls
• Discussion of emerging cybersecurity threats and mitigation strategies
• Case studies of significant cybersecurity breaches and lessons learned

Chapter 19: Ethics

Chapter 19 introduces a crucial discussion on ethics, data, and artificial intelligence. It explores the ethical concerns arising from the widespread use of generative AI tools like ChatGPT, Copilot, and Bard across industries.

The chapter applies five ethical principles to Generative AI use: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. It also introduces the concept of "hallucination" in AI, referring to incorrect or misleading content created due to inaccurate knowledge or biases.

The syllabus expansion includes:

• Detailed case studies illustrating ethical dilemmas in AI implementation
• Frameworks for ethical decision-making in AI-driven environments
• Discussion of potential regulatory approaches to AI ethics
• Exploration of the implications of AI "hallucinations" for business decision-making and reporting

The chapter references the UNESCO Recommendations on the Ethics of Artificial Intelligence, outlining ten core principles for ethical AI use. These principles include proportionality and do no harm, safety and security, privacy and data protection, and fairness and non-discrimination.

The syllabus now provides:

• In-depth analysis of each UNESCO principle and its practical implications
• Case studies illustrating the application of these principles in real-world scenarios
• Discussion of potential conflicts between different ethical principles and approaches to resolution
• Exploration of the role of Chartered Accountants in ensuring ethical AI use in business

Examples of ethical dilemmas with AI are provided, such as gender bias in leadership role shortlists, AI use in the legal system, and the implications of AI-created art.

The syllabus expansion includes:

• Detailed exploration of bias in AI systems, including sources of bias and mitigation strategies
• Discussion of the legal and ethical implications of AI-generated content in various industries
• Case studies of successful and problematic AI implementations in different sectors
• Frameworks for assessing and managing the ethical risks associated with AI use in business

Our Advanced Level subscription package includes comprehensive coverage of all new syllabus content, ensuring you're fully prepared for your exams.

To download our free PDF summary of the main syllabus changes, click the link below.