This research focuses on the environmental analysis of the textile sector in Pakistan. It identifies and examines the potential risks of internal, external and international dimensions of the organizational environment. This research shows that organizational analysis and management practice in the developing countries has not attended to the complexities and potential risks that are folded in environmental factors. Consequently, the environmental risks and complexities associated with organizational change and development remain unexplored. This thesis identifies these risks and complexities and suggests further that for any successful implementation of transformational change, the identification and management of complexities and risks are essential. To identify and examine the environmental complexities and risks, a study of the textile sector of Pakistan is taken up as a case. This research develops a theoretical as well as methodological framework for examining the context of Pakistan, and focuses on the data collection process in three stages: analysis of the internal environment; analysis of the external and international environment; and a review of the secondary data on the textile sector published by various sources. A set of findings and recommendations are put forward for managing the complexities and risks for a successful implementation of transformational change in the textile sector of Pakistan. The research claims various contributions to existing theory and practice. Firstly, it takes up the context of Pakistan, a developing country, for an analysis of organizational environment. Secondly, this research recommends a detailed examination of the external and international environmental risks and complexities for business organization in the developing countries in general, and the textile sector of Pakistan, in particular. Thirdly, in a similar domain, it identifies a range of complex variables and risks that adversely affect the organization’s transformation process in the textile sector of Pakistan.