RICHMOND ENGINEERING IN CHINA 1
ADMN417: International Business Mgmt ASSIGNMENT 3 CASE ANALYSIS:
RICHMOND ENGINEERING IN CHINA NEW UPDATE FALL 2025|2026
Athabasca University
Case Analysis: Richmond Engineering in China
ADMN417: International Business Mgmt.
Melike Kinik-Dicleli, Instructor
September 30, 2025
, RICHMOND ENGINEERING IN CHINA 2
Executive Summary
Smilla Finn, VP and chief treasurer of Canadian Based Richmond Engineering, a
manufacturer of roadway light poles, is deciding how to proceed with a joint venture (JV) her
firm has been pursuing. After years of working on plans to expands operations outside of
Western Canada, with an initial JV in Indonesia being successful they were looking to break
into the Chinese market. After previous failed attempt due to political unrest and
apprehensions by the potential partners, Richmond is back at the table with 3 other parties to
discuss a possible partnership that could be a lucrative deal. The JV would include a local
township, marketing and finance firm, and steel manufacturer. After working through the
various concerns between the four entities, visits, discussions and reassurances over a period
of more than a year, they proceeded to negotiating the terms of the JV. After nearly 4 weeks
of negotiating, Finn was provided the initial draft of the contract and upon reading found that
many discrepancies existed based on the noted she took. The differences were not in favour
of Richmond’s interest and would be a much higher risk than expected. A decision needs to
be made on how Richmond will proceed with the deal to ensure their best interests are
accounted for. With a big signing ceremony being planned in only a few days, all sides need
a deal to be done.
Problem statement
Smilla Finn, VP of Richmond Engineering is negotiating a JV with 3 different Chinese
entities. With each side having its own way of conducting business, along with language and
culture barriers the negotiations took place of the course of 3 weeks. Many items were
reviewed and agreements made over that time, however when the final agreement was drafted
and ready for signatures, there were inconsistencies in the English version from what Finn
had noted. She has 5 days before the ceremony to determine the best way to proceed: Sign on
trust and accept the deviations, walk away, or address the issues and negotiate more.
Analysis
Richmond Engineering based out of British Columbia has been looking to expand their
operations. Having the Western Canadian market has reached its limit they needed to
investigate additional regions; Eastern Canada was not advantageous due to competition and
larger firms. This meant looking towards international opportunities regions with a growing
market for their products. The company hired an agent to work in the Asian market and sell
their products. After the agents’ research into the market throughout China, it was identified
that a potential possibility for further expansion due to requirements for development in
China, and Richmond’s product brought an advantage over the local manufacturers. The
organization decided to move forward with the prospect of an expansion in China with Smilla
Finn being chosen as the lead individual to work on the deal.
After a failed attempt due to concerns after the events at Tiananmen square, they successfully
entered the Indonesian market which grew their interests further for entering the Chinese
Market. Although they remained a difficult market to enter the Chinese government was
offering more concessions for foreign investment.
ADMN417: International Business Mgmt ASSIGNMENT 3 CASE ANALYSIS:
RICHMOND ENGINEERING IN CHINA NEW UPDATE FALL 2025|2026
Athabasca University
Case Analysis: Richmond Engineering in China
ADMN417: International Business Mgmt.
Melike Kinik-Dicleli, Instructor
September 30, 2025
, RICHMOND ENGINEERING IN CHINA 2
Executive Summary
Smilla Finn, VP and chief treasurer of Canadian Based Richmond Engineering, a
manufacturer of roadway light poles, is deciding how to proceed with a joint venture (JV) her
firm has been pursuing. After years of working on plans to expands operations outside of
Western Canada, with an initial JV in Indonesia being successful they were looking to break
into the Chinese market. After previous failed attempt due to political unrest and
apprehensions by the potential partners, Richmond is back at the table with 3 other parties to
discuss a possible partnership that could be a lucrative deal. The JV would include a local
township, marketing and finance firm, and steel manufacturer. After working through the
various concerns between the four entities, visits, discussions and reassurances over a period
of more than a year, they proceeded to negotiating the terms of the JV. After nearly 4 weeks
of negotiating, Finn was provided the initial draft of the contract and upon reading found that
many discrepancies existed based on the noted she took. The differences were not in favour
of Richmond’s interest and would be a much higher risk than expected. A decision needs to
be made on how Richmond will proceed with the deal to ensure their best interests are
accounted for. With a big signing ceremony being planned in only a few days, all sides need
a deal to be done.
Problem statement
Smilla Finn, VP of Richmond Engineering is negotiating a JV with 3 different Chinese
entities. With each side having its own way of conducting business, along with language and
culture barriers the negotiations took place of the course of 3 weeks. Many items were
reviewed and agreements made over that time, however when the final agreement was drafted
and ready for signatures, there were inconsistencies in the English version from what Finn
had noted. She has 5 days before the ceremony to determine the best way to proceed: Sign on
trust and accept the deviations, walk away, or address the issues and negotiate more.
Analysis
Richmond Engineering based out of British Columbia has been looking to expand their
operations. Having the Western Canadian market has reached its limit they needed to
investigate additional regions; Eastern Canada was not advantageous due to competition and
larger firms. This meant looking towards international opportunities regions with a growing
market for their products. The company hired an agent to work in the Asian market and sell
their products. After the agents’ research into the market throughout China, it was identified
that a potential possibility for further expansion due to requirements for development in
China, and Richmond’s product brought an advantage over the local manufacturers. The
organization decided to move forward with the prospect of an expansion in China with Smilla
Finn being chosen as the lead individual to work on the deal.
After a failed attempt due to concerns after the events at Tiananmen square, they successfully
entered the Indonesian market which grew their interests further for entering the Chinese
Market. Although they remained a difficult market to enter the Chinese government was
offering more concessions for foreign investment.
