This is report of Business environment where swot analysis of company is doneto analyze. the environment

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Chapter 1: Introduction
1. Introduction To Dwarika’s Hotel
Dwarika’s Hotel is a heritage hotel that takes its inspiration from the architectural grandeur of
Newari royal palaces is located in Battisputali., Kathmandu Nepal. The founder of the hotel was
the late Dwarika Das Shrestha. The hotel houses an extensive collection of artifacts from the 13th
century onwards and preserves the aesthetic sensibility of a unique civilization. The hotel has 87-
room 5-star luxury hotel that welcomes over 3000 visitors a day, took over 30 years to construct,
and has won the UNESCO Asia-Pacific Heritage Award for Culture Heritage Conservation The
hotel is still managed by the Shrestha family, and now possesses one of the biggest private
woodwork collections in the world.
1.1.Dwarika’s Journey
Dwarika Das Shrestha was an extraordinary human being – a true visionary who was acutely
aware of his own identity, the changing world around him and his responsibility towards it. The
Hotel is known for its efforts in cultural preservation. It started when founder Dwarika, on
impulse, decided to save old wood carvings from traditional Kathmandu buildings that were about
to be thrown away. Shrestha also revived the technique of "Dacchiapa," the Newari traditional
method of making carved bricks
1.2.Early Beginnings
Dwarika Das Shrestha was sent to school in India at the tender age of six though born into a
relatively affluent Newar family. Dwarika Das Shrestha completed his education with a degree in
law and commerce in the early 1950s, and returned to Nepal with the dream of helping Nepal
regain its former glory. His first business was the establishment of the first hotel in Nepal, Paras
Hotel, in 1952 at a time when Nepal was yet to establish itself as a tourist destination. The hotel's
primary patrons were Indian and Nepali pilgrims who came to visit the Pashupati Temple. The
guiding philosophy of Dwarika's Hotel comes from this realization. In the late 1950s, Dwarika
Das Shrestha bought the land upon which The Dwarika's Hotel is now located and built on it a
small family home, incorporating into the design some of the ancient windows he had collected.
1.3.Dwarika's Today
Continuing his vision and utilizing the sketches through which he had conceived the hotel, his
wife and daughter, Sangita Shrestha, completed the front building (where the reception is now
housed) in 1998. In order to complete the building's façade, they worked closely with a local
potter named Hirakaji for close to a year, trying to replicate the horizontally carved designs with
terracotta.

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2. Internal Analysis of Dwarika’s Hotel
Internal analysis is the process of identifying and evaluating an organization’s specific
characteristics, including its: Resources, Capabilities and Core competencies
We find out the most common internal factors that affect business of Dwarika ‘s hotel in various
ways.
 Competitive advantage
The hotel is built with handmade bricks, and incorporates original wood works that are
centuries old. The Dwarika’s Kathmandu is a pioneer in sustainable heritage conservation. It
is a living example of how cultural restoration and tourism can complement each other,
leading to the preservation of historical artifacts and the growth of a rich cultural industry
which can be taken as a competitive advantage. Nepali customs dictate that a guest is akin to
a god and should be treated with such reverence and courtesy.
 Organizational and operational
These are a part of the operational and administrative procedures. This includes disorganized
or inaccurate record keeping. Evaluations of interruptions to supply chain and outdated or
faulty IT systems were done by IT department of hotel. If they do not overcome these,
customers might see them as unreliable.
 Innovation
Our business needs innovation in order to keep up with competitors. It could be through
promotional initiatives in the marketing plan, staff training, and welfare which is accepted by
Dwarika hotel. Embracing new technology is the best way to keep up with technological
advancements.
 Financial
The financial risks depend on the financial structure of business, business transactions and the
financial systems. For example, changes in interest rates or being overly reliant on one
customer could affect business. These factors are considered by Dwarika’s hotel.
 Employees
The staffs here are trained to provide the best hospitality services to their guests. Similarly,
they are given bonus and benefits annually based on their performances. This is taken as
motivational part for each and every staffs working in hotel.

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3. External Analysis of Dwarika’s Hotel
3.1. PESTL ANALYSIS
3.1. 1. Political
 Government policies on Tourism Sector
Policies defined by governments can really help the business to know if it is in their favor or
not. Policies help an organization to forecast its future and work accordingly.
 Taxation system
Taxation system is managed by government. Taxation system lets the organization know
about their expenses and if government is in favor of tourism then the government subsides
their tax in tourism sector.
 Government grants and fiscal incentives
Government while making fiscal policies allocates certain amount of budget in tourism sector
as it has potentiality to earn foreign currency. They provide grants and incentives like tax
subsidy, road construction to rural areas (Tourist location).
3.1. 2. Economic
 Interest rates
Big hotel chain and hotels like Dwarika’s hotels need lot of investment to built up a hotel.
Since it needs lot of investment the group needs to take loan where the interest rates plays an
important role in PEST analysis.
 Currency Exchange Rates
Foreign currency exchange rates change day to day. This play major role in tourism sector as
most of the tourist are international. So, we have to keep track of it.
 Globalization
Globalization has changed the face of business. Today in sector like tourism we can keep
every update via internet from fooading, lodging to managing the whole trip. And we can also
booking the place and lodge and also get different kinds of special offers.

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3.1. 3. Social
 Lifestyle developments
Dwarika hotel has preserved old cultural heritage of Nepal. According to change in society
and preference people have started to develop with lifestyle. This is important in business as
we can use this to our advantage and use it in business. As in tourism sector this development
can be organic food, peaceful environment etc
 Demographic change
Demographic change is the change in preferences taste and living style of people. This
demographic change has to be kept in check to know their preference and keep the change in
the organization.
3.1. 4. Technological
 Product Technologies
Technology is changing with the time and is in growing state, every day new invention are
being made. These technologies should be adopted in business for growth of the business. In
Dwarika’s hotel, technology can be brought into practice by use of key card entry in rooms,
VR tech to show hotel rooms and environment, etc.
 Communication Technologies
Internet has become a basic requirement of our life. Business can use and are using this
technology to market their products. In tourism sector, this is being practiced more often by
marketing in social site, using different tourism site etc. Dwarika hotel has its own website
launched so tourists can book rooms.
3.1. 5. Legal
 Unions
Unions of workers are formed and there is formation of laws based on unions such as working
hours should not access more than 8 hours and minimum salary to be provided should be Rs
8000.There is formation of union in Dwarika as well to protect the rights of employees
working here.

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We analyzed Dwarika’s strength , opportunities ,threats and weakness with the help of SWOT
analysis technique .
3.2. SWOT ANALYSIS
3.2.1. Strengths
 Goodwill
Since it has been established for a long time (65 years) and being the oldest and only
homegrown chain of hotels in Nepal, Dwarika has been able to gather a praiseworthy
goodwill and has created a benchmark in the sector of Hotel Industry.
 Natural and cultural diversity
The hotel has won the UNESCO Asia-Pacific Heritage Award for Culture Heritage
Conservation The hotel possesses one of the biggest private woodwork collections in the
world. The restoration workshop that the late Dwarika Shrestha established in order to revive
wood carvings as early as 1962 is still in operation, although only used for significantly
damaged pieces. Also, the hotel is embraced culture at its best from inclusion of typical
Newari Cuisine in their menu to lawns designed and decorated in Nepali/Newari Culture
theme
 Knowledge of Customer Satisfaction
Serving since 1952 Dwarika has acquired enough knowledge about the tastes and preferences
of customers and has been serving according to their needs and requirements. Thus, the entire
team of Dwarika’s hotel has good knowledge about Customer Satisfaction.
 Early Expansion/ Strategic Location
Dwarika’s hotel has expanded its hotels and resorts in the early stage of development of the
hotel industry in Nepal and its Dwarika’s Resort in Dhulikhel . Thus, the group has a plus
point as it has already expanded its hotels in strategic locations nearby different heritage sites
as well as the travel site of Nepal where there is good flow of tourists.

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3.2.2. Weaknesses
 Niche Domestic Market
Dwarika has somehow failed to go internationally. Nepal having a niche market in the hotel
industry has been unable to get as much of profits it could actually gain.
 Slow implementation
Despite being an early expansioner KGH group of hotels are somehow slow in
implementation of their expansionary plans and projects which leads them to fail till some
extent
 Susceptible to political events
Nepal is politically unstable and untimely strikes, bandhas, disrupts etc. occurs frequently
which hampers the industry as where tourism sector is also affected.
 High taxation by Government
Hospitality Industry here in Nepal is considered as a luxury and the tax allocated for the
particular is quite high which always stops one from having a handsome profit.
 Decrease in Charm of Pasupatinath Area
Due to the development of other places as Tourist Destination (Thamel, Basantapur Durbar
Square and due to the increase in illegal activities such as Drug Dealings, Prostitution etc.
there is a certain decrease in Charm of Pasupatinath Area. This has led to affect the business
in Kathmandu.

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3.2.3. Opportunities
 Heritage Executive Suite
It mostly focused on the people who love the things that are made with ancient woodcrafts
and design. The linen is organically produced and hand woven. Similarly, furniture is custom
designed and handmade at our own workshop. Many of the rooms face the charming
courtyard.
 Untapped potentialities
There are many other places where Dwarika group of hotels haven’t reached. There are many
places in Nepal like Jomsom, Pokhara etc. where Dwarika hotel can expand its business as it
has untapped potentialities.
3.2.4. Threats
 Increasing competition
The hotel industry has the greatest threat of completion as rise of other Star hotels and resorts
leads increase in competition. Also, now with the concept of “Home Stay” the hotel business
are facing problems.
 Decreasing in international tourist arrivals
As we there was a campaigns like “Visit Nepal” held in 1998 and 2011 which help in the
overflow of tourist visit the Nepal. The arrival of tourist compared to 1998 and 2011 were in
decreasing state every year. Similarly due to earthquake in 2015, tourists level in Nepal has
slowed down .
 Unstable economy
Nepal is a developing country. Due fluctuation of interest in banks the economic state of ,
Nepal is unstable. Unstable economy can be a threat as return on investment cannot be
forecasted. Dwarika’s faces the same threat to meet its expansion plans as group of hotels are
built on own land. Thus, the group requires loan to buy land for construction of their every
new project.
 Political turbulence
Political turbulence and unrest is a big threat to hotel industry in Nepal. Political instability
like strikes and bandha’s highly affect the flow of tourists in Nepal every year. Dwarika’s has
always been facing the threat of political turbulence like that it faced during the mass
movement 2068.

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4. Strategies For Success
The amalgamation of Nepal’s heritage together with its longstanding tradition of hospitality
makes The Dwarika’s Kathmandu an intimate experience of a refined Nepali lifestyle.
Dwarika's Hotel was registered in 1977, with the idea of reviving the architectural splendour of
the valley. All the terracotta work was made in the valley, using local clay and skills. The couple
also incorporated elements of Nepal's diverse cultural heritage, including those from beyond the
valley, when designing the rooms. The furniture was crafted by families of traditional carpenters,
and the linen, textiles and embroideries were hand woven and used Nepali patterns.
4.1.Expansion Plans
The Dwarika’s hotel plans to add new properties to business in the years to come to their current
line-up of two hotels and resorts. When making plans for the future, young the overall business
climate of Nepal makes it difficult to make long term plans. The hotel owner reveals that the
group plans to streamline and standardize the quality of its services offered throughout the
properties of the group as well as its management style. For this purpose, he says, the group is
adopting a corporate model of running business that will centrally control all sister concerns it
owns.
4.2. Human Resource Management
Dwarika's Today The hotel is still managed by the Shrestha family - Ambica, Sangita and
Dwarika Das' grandson, Rene Vijay Shrestha- and now makes up one of the largest private
woodwork collections in the world. However, the family no longer buys old wood works unless
they are significantly damaged and require restoration at the heritage workshop in the hotel.
Where possible, the hotel instead encourages people to incorporate the pieces into their homes
and appreciate their cultural heritage. The influence of The Dwarika's Hotel retains Dwarika Das
Shrestha's guiding philosophy and remains a beacon on the importance of heritage conservation in
Nepal.
Similarly, the hotel prioritizes hiring employees from underprivileged groups and communities.
The hotel gives preference to those who have returned after working abroad “We have maintained
a very good relationship with employees and so, we do not have problems with the human
resource management,” the founder states about the company’s relationship with its employees.

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5. Conclusion
From the study and research,we can conclude that there are economic and cultural benefits. There
is generation of employment to youths and increase in GDP as well. Similarly, Dwarika Das’s his
collection of wood work and was beginning to understand the true value of Nepal's rich cultural
heritage, and the role it could play in building a prosperous Nepal. Tackling to weak points and
threats, Dwarika hotel is still famous and running its business in Nepal.” The hotel as a
commercial enterprise is merely a vehicle to finance and carry my dream forward.” this quote by
Dwarika makes us realize that good effort, and determination is a building key for success in
Business Environment.

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6. Recommendation
Since the Dwarika’s family no longer buys old wood works unless they are significantly damaged
and require restoration at the heritage workshop in the hotel. Where possible, the hotel should
instead encourage people to incorporate the pieces into their homes and appreciate their cultural
heritage. Every guest are given equal priority and personal service that will make them want to
stay on and on.

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7. References
https://dwarikas.com.(2017).
S Bajracharya.(2016). BusinessAnalysison KGH group of hotels. Kathmandu:JunuHada.

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8. Dwarika’s hotel Glimpse