A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration

Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2020

Nepal is highly dependent on the neighboring countries India and China. There is no steadfast source of national income except through remittance and imports of the products which plays important role in Nepal{u2019}s economy. The import is highly depended on India and China through which the economy of Nepal is surviving. But, during 1996-2006, Nepal was in the state of civil conflict which has hampered the economy. Many business organizations were shut down however few survived. Likewise, in 2015, the economic crisis effected Nepal as the imports of the petroleum products were blocked from border area. These two cases had highly affected the economy of Nepal. However, organization used various strategies to survive during this crisis. Therefore, this paper analyses the strategies used by business organization during these two crises and recommend using best strategies to follow during hard times. The paper finds out that there are four reasons why business thrive during the crisis which are Deleverage Before Downturn, Look Beyond Layoff, Invest in Technology and Focus on Decision Making. By analyzing the two economic crisis: Global recession and Asian Economic Crisis, the strategies that were analyzed fall under this four reason. Likewise, there are many other response strategies which does not exactly fall under these four reasons however concludes that the response strategies are: cost-response strategies, human resource response strategies and financial response strategies. The paper analyzes through other two crisis of Nepal which are Maoist Insurgency and Economic Crisis of 2015. Linking it with the literature review, the paper concludes that Nepal have three reasons for thriving these both crises and the response strategies focus on the three response strategies.