@Razgriz 2K9: I am pretty sure they didn't want to annex them, but I do not really know all that much about exactly what A-H's WW1 war aims were to be honest.
@Winner: Yeah, no kidding. I think if we end up losing the war, the Kaiser better look to Denmark, or Switzerland, or maybe Sweden to go into exile!
@Milites: So far actually it seems to have been a major help, the Germans made very decent progress as you will see in the future.
@GulMacet: Thats what I am thinking as well.
@everyone else: Thanks for the comments!
With war declared, the country goes into a full wartime footing. The people of the country are encouraged to buy bonds in order to help the government pay for the huge costs associated with the war effort, while a propaganda campaign is implemented to rally the people around the flag and encourage them to join the K.u.K Army and Kriegsmarine, and fight for their country's victory.
August 1st, 1914. In one massive hammer stroke, the K.u.K Army crosses the southern frontier and invades Serbia, meeting very heavy resistance all along the front. Although local generals had wanted some more time to organize their forces for the attack, the General Staff back in Vienna wanted to launch the attack as soon as possible, in order to keep the Serb's from fortifying their positions too heavily and make the advance too difficult.
Serb and Montenegrin resistance is ferocious. Despite being vastly outnumbered and outgunned, the enemy fights for every square inch, using very well prepared positions in the mountains to hold back attacks by the K.u.K Army's forces. Major fighting is also taking place in the Serb capital of Belgrade, where only 2 enemy divisions are attempting to hold off over 3 times their number of Austro-Hungarian troops, and stubbornly holding their ground in the streets of the city. Montenegro is also fighting for its survival in its own capital of Cetinje, a fight that is going much better for the K.u.K army.
The British are now beginning to inch closer and closer to war against the Central Powers. Britain begins seizing control of warships in its shipyards that were being constructed for other countries, including two battleships which were being built for the Ottoman Empire's navy. This greatly angers the Ottomans, who look more and more like they are going to join the Central Power's side in this conflict.
The economy of Austria-Hungary is now being geared towards nothing but military production. Multiple divisions of infantry, as well as heavy artillery brigades to reinforce them, are now undergoing training. Divisions of irregular Landwehr troops are also being raised and equipped, to be used to fill gaps in the country's defenses as well as to hold down occupied enemy territory.
As the K.u.K offensive into Serbia and Montenegro gets underway, alarming reports arrive to the General Staff in Vienna of a massive threat emerging in Galicia. Almost simultaneously, 3 Russian field armies have launched a large scale attack on the entire Galician region, targeting Perzymysl, Tarnopol, and Tarnow in one fell swoop. in response to the Russian army's attack, 11 divisions worth of K.u.K Army Cavalry, which have been held back in reserve for just such an occasion, are ordered to begin shoring up the defenses in one area at a time, hoping to blunt each attack one by one before the Russians can achieve any kind of major breakthrough.
Finally, as the German Army begins to sweep into the BeNeLux region, Britain finally chooses a side. The British join the Entente powers, and are now at war with both Germany and Austria-Hungary. Britain's mighty Royal Navy is now beginning to set sail, while Britain begins to recruit new soldiers into its still relatively small but highly professional army.