Study Of The Development Of The Domestic Service Enterprises, Based On System Dynamics

With China's economic growing and continuous improvement of living standards, household services are becoming an indispensable part of life. Creating a favorable business environment is the foundation of healthy development of China's household service.Firstly, we research the economic contents of domestic services undertakings according to the theory of service economic and then find the fact that promote and hinder the development of household service. Secondly, using systematic approach to identify housekeeping services, enterprise development system of the various elements of analysis and build the basic structure of the system. Thirdly, building the system flow diagram and determining the system parameters and the constant in order to complete definition of system variables and equations. Finally, using system dynamics Vensim software to build household service business development model for policy simulation and analysis.According to the analysis can draw the following conclusions:First, the continuous expansion of household service companies for the remaining products is the main driver of business forward. the development of household service companies is limited by the size of the market from this product and service management efficiency, product quality. From the perspective of system dynamics, household service business development system is a interaction of several factors. These factors are:"to enhance market expansion loop," "market regulation loop", "Service quality construction control loop" and "management efficiency building regulation loop".Second, this paper, each control loop access system to simulate different situations come to the appropriate business development strategies. When both "enhance market expansion loop" and "market regulation loop" effect, the development of household service companies showed S-shaped growth curve. At this time, increasing capital on business will enable to make enterprises more quickly reach the limits of development; When the "quality of service building control loop" single access system, the system is constrained by the quality of service factors, companies can build the quality of service to alleviate this constraint. simulation results show that when the construction quality of service was 0.2, the development of policy is most reasonable; When the "management efficiency building regulation loop" single access system, the system constraints by enterprise management efficiency, business efficiency can also manage the construction to alleviate this constraint, simulation results show that when the quality of service was 0.5, the development of policy is most reasonable. When both the "quality of service building control loop" and "management efficiency building regulation loop" access system, the companies are bound by endogenous factors, simulation results show that when the quality of service was 0.1 and management efficiency was 0.5, the development of policy is most reasonable.Thus, when the development of household service companies face strategic decisions, first should analysis their market environment and the challenges and then choose a reasonable policy.