The development of Dong-ding oolong tea has the representative of Taiwan tea industry. It was a long-term and complex dynamic progress, and interacted with the environment closely. This study attempted not only systems approach to analyze the development course of Dong-ding oolong tea, but also an interactive point of view to explain a process of business management. In addition, this study created a dynamic model for the evolutionary process of Dong-ding oolong tea. The results of this study revealed the development process of a case study, and then via setting up unique and unmatched dynamic models continuously in different stages of development to enhance contingency theory of industry system entering another stages of improvement progress. In conclusion, this study proposed discussion on industry policy and business management.