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Luckin Coffee Inc. (Luckin), an emerging growth firm that aimed to become the market leader in the coffee industry in China, had quickly grabbed market share by using freebies and discounts to entice cost-conscious Chinese consumers to try its products. Luckin sold its coffee and snacks through a proprietary mobile app, and customers either picked up their orders from strategically located stores or had them delivered. By the end of 2019, Luckin had served 40 million customers from its 4,500 stores. While the path to Luckin's goal was clear, investigations revealed that key executives and board members had allegedly defrauded investors by distorting revenue and expense figures and engaging in related-party transactions that channeled resources out of the company. The accounting scandal led to further investigations, penalties from Chinese regulators, and a drop in the company's share price and valuation, which went from $12 billion to below $1 billion within 11 months of listing. By August 2020, the company had been delisted from the Nasdaq exchange, its board composition had been changed, and it had been placed under the supervision of "light touch" provisional liquidators in the Cayman Islands. Was there a chance that Luckin could survive the scandal and its investors could recoup their funds? What could the company do to restore investor confidence and regain its path to becoming the market leader in the Chinese coffee industry? What were the implications of the accounting scandal to current and future listings on US stock exchanges?

On June 11, 2018, Jake Veluz, portfolio manager at BDO Asset Management had to decide whether or not to invest in the initial public offering (IPO) of D.M. Wenceslao and Associates (DMW), a Philippine-based integrated property developer. The IPO price of DMW was reduced from ₱22.90 to ₱12 because of deteriorating stock market conditions. There is substantial concentration risk because most of the company’s land is in a single location and it is subject to long-term competitive pressures. However, DMW also has good prospects for future growth and capital appreciation in real estate rentals and development. Veluz had to prepare an internal memo to explain the merits, risks, and fair valuation of a possible investment in the DMW IPO in the context of weak stock market conditions.

Instructor Spreadsheet to accompany product 8B20N025.

Student Spreadsheet to accompany product 9B20N025.

On June 11, 2018, Jake Veluz, portfolio manager at BDO Asset Management had to decide whether or not to invest in the initial public offering (IPO) of D.M. Wenceslao and Associates (DMW), a Philippine-based integrated property developer. The IPO price of DMW was reduced from ₱22.90 to ₱12 because of deteriorating stock market conditions. There is substantial concentration risk because most of the company's land is in a single location and it is subject to long-term competitive pressures. However, DMW also has good prospects for future growth and capital appreciation in real estate rentals and development. Veluz had to prepare an internal memo to explain the merits, risks, and fair valuation of a possible investment in the DMW IPO in the context of weak stock market conditions.

Student spreadsheet supplement to case W20664

In June 2019, a newly promoted branch manager of a bank in Davao City, Philippines, must recommend to the bank's head office who among six loan applicants will obtain loans from the branch. She has received applications for 24 million in loans but can only grant 18 million. The branch manager needs to (a) decide how much to loan and to which customers, (b) find ways to retain valuable customers and acquire new ones, and (c) consider new avenues to accommodate the increasing number of applicants at her branch. The case encourages students to apply customer relationship management concepts in deciding which borrowers to recommend and it offers an opportunity to discuss the role of marketers as trusted advisers to their clients.

In June 2019, a newly promoted branch manager of a bank in Davao City, Philippines, must recommend to the bank’s head office who among six loan applicants will obtain loans from the branch. She has received applications for ₱24 million in loans but can only grant ₱18 million. The branch manager needs to (a) decide how much to loan and to which customers, (b) find ways to retain valuable customers and acquire new ones, and (c) consider new avenues to accommodate the increasing number of applicants at her branch. The case encourages students to apply customer relationship management concepts in deciding which borrowers to recommend and it offers an opportunity to discuss the role of marketers as trusted advisers to their clients.

Student spreadsheet to case W19630

In early December 2016, a student member of the Philippine Fund of the finance lab at the Asian Institute of Management was wondering whether to invest in the initial public offering (IPO) of Shakey's Pizza Asia Ventures Inc. (Shakey's). Shakey's was the market leader in the full-service chain restaurants industry in the Philippines and would be the fourth company to be listed in the Philippine Stock Exchange. The IPO period was from December 2 to December 8, 2016, and the company was offering a total of 306 million shares. The student member must decide whether to buy Shakey's stock based on her estimate of the intrinsic value of Shakey's relative to the IPO price, Shakey's strategy and prior performance, and the attractiveness of the food service and restaurant industry.

Student Spreadsheet to accompany product 9B19N021.

In early December 2016, a student member of the Philippine Fund of the finance lab at the Asian Institute of Management was wondering whether to invest in the initial public offering (IPO) of Shakey’s Pizza Asia Ventures Inc. (Shakey’s). Shakey’s was the market leader in the full-service chain restaurants industry in the Philippines and would be the fourth company to be listed in the Philippine Stock Exchange. The IPO period was from December 2 to December 8, 2016, and the company was offering a total of 306 million shares. The student member must decide whether to buy Shakey’s stock based on her estimate of the intrinsic value of Shakey’s relative to the IPO price, Shakey’s strategy and prior performance, and the attractiveness of the food service and restaurant industry.

Instructor Spreadsheet to accompany product 8B19N021.