The main focus of this graduate thesis is the process of strategic transformation of the textile enterprise Varteks d.d. During the past years, because of inadequate leadership and unadjusted strategy, the enterprise has been achieving negative results. After certain financial contribution and adjustment of adequate strategy and leadership, the enterprise has again better results. In the thesis there is an explanation of terms such as strategy, strategic transformation, strategic turnaround and business management. All these concepts and their characteristics, are essential in order for parts of the thesis to be understood better. There is also an explanation of the progress of the enterprise during their history, since establishment until today and how did different situations influenced business cycles of the enterprise. After accomplished and much needed recapitalization, the enterprise slowly started to achieve much better results than years before. All of the urgently needed processes for successful strategic transformation, from necessary financial investments, crucial strategic changes and changes in business management, are joined in the thesis. The proof to the fact that the enterprise is achieving positive business results, is financial analysis after accomplished strategic transformation. In order to say that all of these actions in the process of strategic transformation, reached positive outcomes, much more time and investment are needed