Problem:
Margot, the VP of the Global Home Products division at Tiffany's, has been tasked with developing financial and strategic objectives. Tiffany's is a luxury jewelry and accessories company based in New York. In preparation for Tiffany's acquisition by LVMH, a global luxury brand conglomerate, Margot has been asked to add short-term and longer-term performance targets. Is it important for her to spell out both of these short-term and long-term performance targets? Which time frame is more important? Are there trade-offs involved? Explain.