ABSTRACT
Most of the research efforts in strategic management are rooted in studies of how firms can stabilize themselves and not on how to adjust to the changes in the external environment. How firms change and adjust to environmental shocks has been studied by organizational theorists like Barnard in Functions of the executive, and Pettigrew in The awakening giant and the tradition has continued wherein the process of change in organizations has been studied. Transformation in contrast is the systematic, simultaneous and deliberate attack across many fronts that fundamentally alters the basic rhythm and character of a company. A number of companies like Hero Motors did not have to go through major transformation and have been successful by effecting some amount of strategic changes. In spatial separation, one part of the organization is responsible for undertaking the process of change and renewal while the other parts remain unaffected.
