ABSTRACT

In order to survive, every company has to maintain its sustainable growth. Existing for more than 100 years, the Tomasello Pasta Company has started to encounter dynamic environments and the involvement of multiple parties. Thus, this company becomes the main object for this study as it shows how the System Dynamic (SD) approach helps maintain its sustainable growth. For the last couple of years, this company has experienced an increase in demand, specifically from the international market. Yet, this company encountered a problem in 2009 when its revenue started to decrease, along with its EBITDA (earnings before interest, tax, depreciation and amortization). By using SD methodology, this study seeks to find the main resource that the company lacks to meet the increasing demand. Customer satisfaction, liquidity, quality, and production capacity are found to be the company’s main resources. With the simulation described in this study, it is suggested that the company has to maintain its customer satisfaction through its backlog, as well as paying more attention to its production capacity since it has a dominant effect to the desired end result. The results of this study are also expected to give recommendations to the decision makers in the Tomasello Pasta Company, to decide the best source of external funding to sustain its growth.