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eleventh edition Page i
STRATEGIC MANAGEMENT
text & cases
Anatoli Styf/Shutterstock
GREGORY DESS
University of Texas at Dallas
GERRY McNAMARA
Michigan State University
ALAN EISNER
Clark University
STEVE SAUERWALD
University of Illinois at Chicago
Page ii
STRATEGIC MANAGEMENT
Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10019.
Copyright © 2024 by McGraw Hill LLC. All rights reserved. Printed in the United States of
America. No part of this publication may be reproduced or distributed in any form or by any
means, or stored in a database or retrieval system, without the prior written consent of
McGraw Hill LLC, including, but not limited to, in any network or other electronic storage
or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to
customers outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 28 27 26 25 24 23
ISBN 978-1-266-20046-5
MHID 1-266-20046-0
Cover Image: Anatoli Styf/Shutterstock
All credits appearing on page or at the end of the book are considered to be an extension of
the copyright page.
The Internet addresses listed in the text were accurate at the time of publication. The
inclusion of a website does not indicate an endorsement by the authors or McGraw Hill
LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented
at these sites.
mheducation.com/highered
Page iii
dedication
To my family—Margie; Taylor; Alex, our new son-in-law; and my parents, the late Bill and
Mary Dess
To my first two academic mentors—Charles Burden and Les Rue (of Georgia State
University)
–Greg
To my wonderful wife, Gaelen, and my children, Megan and AJ

–Gerry
To my family—Helaine, Rachel, and Jacob

–Alan
To my wife, Pla, and daughters, Miriam and Layla

–Steve
We thank Seung-Hyun Lee for his contributions to previous editions and wish him the best
as he refocuses his time toward his academic research in strategic management and
international business.
Page iv
about the authors
Gregory G. Dess
Gregory G. Dess
is the Andrew R. Cecil Endowed Chair in Management at the University of Texas at Dallas.
His primary research interests are in strategic management, organization environment
relationships, and knowledge management. He has published numerous articles on these
subjects in both academic and practitioner-oriented journals. He also serves on the editorial
boards of a wide range of practitioner-oriented and academic journals. In August 2000, he
was inducted into the Academy of Management Journal Hall of Fame as one of its charter
members. Professor Dess has conducted executive programs in the United States, Europe,
Africa, Hong Kong, and Australia. During 1994 he was a Fulbright Scholar in Oporto,
Portugal. In 2009, he received an honorary doctorate from the University of Bern
(Switzerland). He received his PhD in business administration from the University of
Washington (Seattle) and a BIE degree from Georgia Tech.
©He Gao
Gerry McNamara
is the McConnell Broad Professor of Management at Michigan State University. His
research draws on cognitive and behavioral theories to explain strategic phenomena,
including strategic decision making, mergers and acquisitions, and environmental
assessments. His research has been published in the Academy of Management Journal, the
Strategic Management Journal, Organization Science, Organizational Behavior and Human
Decision Processes, the Journal of Applied Psychology, Personnel Psychology, the Journal of
Management, and the Journal of International Business Studies. Gerry’s research has also
been abstracted in the Wall Street Journal, Harvard Business Review, New York Times,
Bloomberg BusinessWeek, the Economist, and Financial Week. He has served as an associate
editor for the Strategic Management Journal and the Academy of Management Journal. He
received his PhD from the University of Minnesota.
Page v
Alan B. Eisner
Alan B. Eisner
is Dean of the School of Management and Professor of Management at Clark University. He
received his PhD in management from the Stern School of Business, New York University.
His primary research interests are in strategic management, technology management,
organizational learning, and managerial decision making. He has published research articles
and cases in journals such as Advances in Strategic Management, International Journal of
Electronic Commerce, International Journal of Technology Management, American Business
Review, Journal of Behavioral and Applied Management, and Global Journal of Business
Pedagogy. He is the former associate editor of the Case Association’s peer-reviewed journal,
The CASE Journal.
Steve Sauerwald
Steve Sauerwald
is an Associate Professor of Strategic Management in the College of Business at the
University of Illinois at Chicago. His research interests focus on corporate governance,
strategic leadership, and stakeholder strategy. He pursues this research program in a global
setting by examining how institutions surrounding domestic and international firms shape
organizational outcomes. His scholarship has been published in journals such as Strategic
Management Journal, Organization Science, Journal of International Business Studies, Journal
of Management, and Journal of Management Studies. His research has been covered by
Forbes, Harvard Business Review, and BBC. He received his MBA and PhD from the
University of Texas at Dallas. He was a Fulbright Scholar at the University of Texas at
Dallas and a visiting scholar at Free University Berlin.
Page vi
preface
Welcome to the Eleventh Edition of Strategic

Management: Text and Cases. We always appreciate the
constructive and helpful feedback that we have received on our work. Later in this preface,
we are happy to acknowledge by name the reviewers for all 11 editions of Strategic
Management. Following are some examples of the encouraging feedback we have received:
I have found this text, after several years of using it, to be comprehensive and extremely well
structured. The many, varied real-world examples resonate with students. I see no reason to
change from an excellent text.
Karen Ford-Eickhoff, University of North Carolina-Charlotte
The textbook by Dess et al. comprehensively integrates research to explicate the strategic
management process, delivers a variety of high-quality case studies, and provides interesting
insights from executives on strategy.
Steven Dionne, Georgia State University
We find the Dess text to be an exceptionally well-suited companion for business simulations
used in the course. I use all the chapters as the fit is logical and portrays a realistic
examination of how business functions are interdependent.
Robert W. Reich, Tarleton State University
I am biased towards this text as I’ve found it invaluable for me as a student-centered teacher
who focuses on bringing as much value to my students as possible. I want each class meeting
to be as full as possible with insightful, relevant, and meaningful content that students can
immediately apply to their business comprehension. This text helps me facilitate this!
John Sanchez, University of North Carolina-Greensboro
This textbook is a rich resource for the students. The accompanying videos and cases assist
the students in applying what they learn. The concepts are always tied to corporate
examples, often using companies the students can easily identify with.
Renata Mayrhofer, Concordia University St. Paul
I have used the Dess strategic management textbook for six years and I plan to continue
using the Dess textbook. I think it is the best strategy textbook on the market today.
Robert Dintino, Rowan University
Overall, a solid textbook that organizes the strategic material clearly and concisely (and)
provides great examples of cases inside and at the end. I have been happily using the book
for the last 11 years.
Omer Gokalp, Suffolk University
I have used the previous edition of the text in my course and found it very useful. I consider
it to be the most comprehensive yet concise text on strategic management. I will continue to
use the text in the future.
Alex Makarevich, California State University-East Bay
This title brings to life core parts of the strategic process, helping students to get a better
understanding of the untidy process of strategizing. I will definitely continue to use Dess!
Isaac Wanasika, University of Northern Colorado
We always strive to improve our work and we are most appreciative of the thorough Page vii
feedback that many strategy professionals have graciously given us. The author team
has worked hard to incorporate many of their ideas into the eleventh edition.
We believe we have made valuable improvements throughout our many revised editions of
Strategic Management. At the same time, we strive to be consistent and true to our original
overriding objective: a book that satisfies three Rs—rigor, relevance, and readability. And we
are pleased that we have received feedback (such as the previously noted comments) that is
consistent with what we are trying to accomplish.
What are some of the features in Strategic Management that reinforce the three Rs? First, we
build in rigor by drawing on the latest research by management scholars and insights from
management consultants to offer a current and comprehensive view of strategic issues. We
reinforce this rigor with our Issues for Debate and Reflecting on Career Implications that
require students to develop insights on how to address complex issues and understand how
strategy concepts can enhance their career success. Second, to enhance relevance, we
provide numerous examples from management practice in the text and Strategy Spotlights
(sidebars). We also increase relevance by relating course topics and examples to current
business and societal themes, including environmental sustainability, ethics, globalization,
entrepreneurship, and data analytics. Third, we stress readability through an engaging
writing style with minimal jargon to ensure an effective learning experience. This is clearly
evident throughout the text, but in particular, in the conversational presentations of chapter
opening Learning from Mistakes and chapter ending Issues for Debate.
Unlike other strategy texts, we provide three separate chapters that address timely topics
about which business students should have a solid understanding. These are the role of
intellectual assets in value creation (Chapter 4), entrepreneurial strategy and competitive
dynamics (Chapter 8), and fostering entrepreneurship in established organizations (Chapter
12). We also provide an excellent and thorough chapter on how to analyze strategic
management cases.
In developing Strategic Management: Text and Cases, we certainly didn’t forget the
instructors. As we all know, you have a most challenging (but rewarding) job. We do our
best to help you. We provide a variety of supplementary materials that should help you in
class preparation and delivery. For example, our chapter teaching notes do not simply
summarize the material in the text. Rather (and consistent with the concept of strategy), we
ask ourselves: “How can we add value?” Thus, for each chapter, we provide numerous
questions to help guide class discussion, at least 12 boxed examples to supplement chapter
material, and three detailed teaching tips to further engage students. Importantly, we
completed the chapter teaching notes ourselves. That is, unlike many of our rivals, we didn’t
simply farm out the work to others. Instead, we felt that creating our own teaching notes
helps to enhance quality and consistency—as well as demonstrates our personal commitment
to provide a top-quality total package to strategy instructors. With the eleventh edition, we
also benefited from valued input by our strategy colleagues to further improve our work.
Let’s now address some of the key substantive changes in the Eleventh Edition. Then we will
cover some of the major features that we have had in previous editions.
WHAT’S NEW? HIGHLIGHTS OF THE ELEVENTH
EDITION
We are happy to welcome Steve Sauerwald to the author team. Steve has developed an
extensive publication record in the areas of strategic management and corporate
governance. He pursues his research program in a global setting by examining how CEOs
and boards of directors address important corporate challenges. His addition to the author
team provides a global perspective, especially in the areas of strategic control and corporate
governance.
We have endeavored to add new material to the chapters that reflects the feedback Page viii
we received from our reviewers as well as the challenges today’s managers face. Thus, we all
invested an extensive amount of time carefully reviewing a wide variety of books, academic
and practitioner journals, and the business press.
We also worked hard to develop concise chapters. Based on feedback from some of the
reviewers, we have tightened our writing style, tried to eliminate redundant examples, and
focused more directly on what we feel is the most important content in each chapter for our
audience. The overall result is that we were able to update our material, add valuable new
content, and—at the same time—shorten the length of the chapters.
Here are some of the major changes and improvements in the Eleventh Edition:
Connected Strategies. We address how firms have successfully implemented new forms of
connectivity with their customers, which involve low-friction, frequent, and customized
interactions. This enables companies to be more proactive; that is, respond to customer
needs as they arise—or even anticipate them. Thus, a win-win is created: Customers
receive a superior experience, and companies enhance their operational efficiency. A few
examples include:
Nike’s direct-to-consumer (DTC) business model, which enables the firm to create
closer relationships with its customers by, for instance, providing them with running
advice through their fitness app as well as finding out more useful information about
customer habits and preferences. (Chapter 2)
Rolls-Royce, a leading producer of jet engines, leveraging the power of its technology to
better serve its customers. Sensors generate gigabytes of data that give customers real-
time data on the many components in their engines. Compared to the old fixed-
maintenance schedule, Rolls-Royce is able to create significant cost savings by avoiding
service that is too late or too early. Further, the sensor technologies benefit the firm’s
ongoing engineering efforts by providing information on how operational data can
impact design and production. (Chapter 3)
Wearable X, a Sydney-based startup, which helps yoga enthusiasts improve their yoga
poses without the assistance of an expensive yoga instructor. How? Its Nandi pants
feature woven-in wearable sensors that continuously measure body positions and
provide feedback. Bluetooth technology connected to users’ smartphone helps people
attain correct yoga positions through gentle vibrations. (Chapter 12)
Integrative Themes. As with our previous editions, we include multiple integrative themes
in this edition. These include the digital economy, environmental sustainability, and
ethics. Many new content issues—as well as Strategy Spotlights (our sidebars)—are used
throughout the text and cases to illustrate these important and timely topics central to the
study of strategic management. Given the salient relevance of diversity in today’s business
environment, we devote additional content to it in text material as well as in strategy
spotlights.
Insights from Executives: We received very positive feedback for our initial interview with
Usman Ghani, an internationally recognized consultant who is Chairman of Conflucore,
LLP, in our 10th edition. We are happy to include his interview in this edition. We have
also conducted interviews with three other individuals who have graciously provided us
with valuable insights. Kelly Pfiel, former vice president of PepsiCo, shares her views on
the timely topic of women in management (Chapter 4); Jasmine Crowe, social
entrepreneur, provides tips learned through her experience creating Goodr Inc., a
sustainable food-waste management company based in Atlanta, Georgia (Chapter 8); and
Jim Mapes, a former executive with several companies, including Perot Systems, shares
his views on strategic leadership. Of particular interest is his valuable learning experience
working directly with H. Ross Perot (Chapter 11). Page ix
Half of the 12 opening Learning from Mistakes vignettes that lead off each chapter
are new. Unique to this text, they are examples of what can go wrong, and they serve as an
excellent vehicle for clarifying and reinforcing strategy concepts.
Over half of our Strategy Spotlights (sidebar examples) are brand new, and many others
have been significantly updated. We offer a total of 54 Spotlights that are designed to focus
on bringing the most important strategy concepts to life in a concise and highly readable
manner. And we work hard to eliminate unnecessary detail that detracts from the main
point we are trying to make. Many Spotlights focus on hot issues that are critical in
leading today’s organizations—ethics, environmental sustainability, the digital economy,
and connected strategies.
Key content changes for the chapters include:

Chapter 1 addresses environmental, social, and governance (ESG) investment funds. These
funds offer investors access to companies that strive to do good and avoid harm and have
attracted a new generation of investors. Although these funds have recently outperformed
traditional investment funds, many new funds espouse ESG principles on paper—but not
in spirit. We also discuss some of the different types of ESG funds.
Chapter 2 discusses the rapid rise of artificial intelligence, a salient outcome of the digital
economy and data analytics. Many top management teams are now data analytics driven,
enabling them to manage strategic uncertainties and identify strategic opportunities. AI
also helps to define key performance indicators (KPIs) that help executives monitor,
optimize, and revise strategic initiatives.
Chapter 3 introduces the concept of connected strategies, which is a central theme in this
edition. This approach enables a firm to evolve from having episodic interactions with
suppliers and customers to achieving ongoing connected relationships with them. The
firm can better anticipate supplier challenges and customer needs as well as customize
supply and delivery options. This approach can even create new business models.
Chapter 4 addresses how social capital can help firms leverage the value of both new and
former employees. Firms typically spend time onboarding new employees. However, they
often miss out on the benefits of maintaining relationships with employees who leave the
organization and who may become suppliers, boomerang employees, mentors to current
employees, and ambassadors for the firm. Like universities, many firms are benefitting
from creating active alumni organizations.
Chapter 5 discusses some of the challenges associated with achieving a competitive
advantage based on a firm’s green initiatives. Although consumer surveys typically show
that consumers are willing to pay a premium price for socially and environmentally
sustainable products and services, practice does not bear this out. Three reasons for this
gap may be that consumers may perceive the green products and services as inferior on
some attributes; they may be reluctant to change to an unfamiliar product; and, some
consumers may talk about the benefits of sustainability but not follow up with actual
purchasing behavior. We address how to potentially overcome such resistance. Page x
Chapter 6 explains how firms can become more successful in integrating an
acquisition into their existing organization. Clearly, the success of any acquisition isn’t
determined once the deal closes. We focus on four practices that McKinsey & Company
has advocated: protecting the base business, accelerate capturing value, institutionalizing
new ways of operating, and catalyzing the transformation.
Chapter 7 addresses some of the supply-chain disruptions that arise when there are trade
tensions or global events such as the COVID-19 pandemic. Therefore, firms should
consider the risks associated with becoming dependent on a few countries for critical
inputs to their production processes.
Chapter 8 explains how some recent developments in the digital economy have enabled new
ventures to outsource many technical functions to third-party service providers, hence
reducing the need to hire technical talent. Third-party IT solutions such as cloud
computing further reduce the need to have hardware and software physically on site. The
reduction of such resource intensive investments in human capital lowers entry barriers in
many industries.
Chapter 9 addresses how companies are more likely to incorporate social objectives as part
of CEO compensation arrangements. These objectives include increasing the
representation of traditionally underrepresented groups in labor and management. Such
initiatives are believed to provide strong, formal incentives for CEOs to consider
stakeholder interests more broadly.
Chapter 10 discusses how agile teams can help organizations achieve their objectives quickly
in rapidly changing environments. Such teams help companies transform themselves from
traditional, slow-moving bureaucracies into flexible and agile organizations. We focus on
the role of “hidden stars” in making agile teams successful.
Chapter 11 discusses a salient trend that has become a greater focus for high-level
executives: enhancing diversity, equity, and inclusion (DEI) in their organizations. An
inclusive leadership approach involves not only diversity at all levels in the firm but also
the creation of an inclusive culture where traditionally underrepresented groups feel
appreciated and heard. We provide examples of what firms have done to foster inclusive
culture.
Chapter 12 explains how large companies use real options logic by investing in small startup
companies. This allows them to have a firsthand look into the promise of novel
technologies and gives them the right, but not the obligation, to acquire the nascent
technology. We discuss how such corporate venture investments can be used by non-tech
firms such as an insurance company, Aflac, and Toyota Motors.
Chapter 13 updates our Appendix: Sources of Company and Industry Information. The
authors owe a debt of gratitude to Ms. Loreen Henry, of the University of Texas at Dallas.
She has provided us with comprehensive and updated information for the Eleventh
Edition that is organized on a wide range of issues. These include competitive
intelligence, annual report collections, company rankings, business websites, as well as
strategic and competitive analysis.
We have worked hard to further enhance our excellent case package with a major focus on
fresh and current cases on familiar firms.
More than half of our cases are author written (much more than the competition).
While many of the titles look familiar, we have created fresh stories and added
interesting data about the companies to minimize instructor preparation time and
maximize freshness of content. Page xi
We have added several exciting new cases, including Coinbase (cryptocurrency
trading), Haribo (candy manufacturers), H&M (fast fashion), LVHM (luxury goods),
Pocket Radar (sports technology), and Theorybridge (startup company).
These new cases, along with 38 fresh stories about familiar firms and classics such as
Robin Hood, give instructors many great options.
WHAT REMAINS THE SAME: KEY FEATURES OF

EARLIER EDITIONS
Let’s now briefly address some of the exciting features that remain from the earlier editions.
Traditional organizing framework with three other chapters on timely topics. Crisply
written chapters cover all of the strategy bases and address contemporary topics. First,
the chapters are divided logically into the traditional sequence: strategy analysis, strategy
formulation, and strategy implementation. Second, we include three chapters on such
timely topics as intellectual capital/knowledge management, entrepreneurial strategy and
competitive dynamics, and fostering corporate entrepreneurship and new ventures.
Learning from Mistakes chapter-opening cases. To enhance student interest, we begin each
chapter with a case that depicts an organization that has suffered a dramatic performance
drop, or outright failure, by failing to adhere to sound strategic management concepts and
principles. We believe this feature serves to underpin the value of the concepts in the
course and that it is a preferred teaching approach to merely providing examples of
outstanding companies that always seem to get it right. After all, isn’t it better (and more
challenging) to diagnose problems than admire perfection? As Dartmouth’s Sydney
Finkelstein, author of Why Smart Executives Fail, notes: “We live in a world where success
is revered, and failure is quickly pushed to the side. However, some of the greatest
opportunities to learn—for both individuals and organizations—come from studying what
goes wrong.”* We will see, for example, how Luckin Coffee, founded in 2017, attempted to
take on Starbucks in the fast-growing Chinese market. Luckin took a different approach: It
operated in small pickup locations, where customers place their orders via a smartphone
app. This eliminated the need for cashiers and enabled Luckin to collect data to optimize
sales. Success came quickly and the firm had an initial public offering (IPO) on the
Nasdaq stock exchange in less than two years after its founding. However, things quickly
unraveled! In April 2020, the firm revealed it had inflated its 2019 sales numbers. Its stock
plunged 75 percent overnight. A culture of financial misconduct incentivized employees
to create fake transactions to prop up sales numbers, and the firm’s leadership failed to
institute effective internal controls. Luckin was delisted from the Nasdaq exchange in
June 2020.
Issue for Debate at the end of each chapter. We find that students become very engaged
(and often animated!) in discussing an issue that has viable alternate points of view. It is
an exciting way to drive home key strategy concepts. For example, in Chapter 10 we
address a trend at many large corporations: the flattening of hierarchical organizational
structures. On the one hand, such restructuring has its advantages—it can offer cost
savings, flexibility, and quicker response times. However, some of these benefits may be
offset by negative consequences. These include the overstretching of management
attention, additional friction among managers at various levels since there are fewer
middle managers to resolve conflicts, and demotivating effects caused by reduced
opportunities for managers to advance through the management ranks. Clearly, one size
does not fit all. Firms must consider the relative benefits and costs of flattening their
structures, plus take into account such factors as a firm’s size, technology, and culture, as
well as the industry in which it competes. Page xii
Insights from Research. We include six of these features in the Eleventh Edition.
In them, we summarize key research findings on a variety of issues and, more importantly,
address their relevance for making organizations (and managers) more effective. For
example, in Chapter 2 we discuss findings from a meta-analysis (research combining
many individual studies) to debunk several myths about older workers—a topic of
increasing importance, given the changing demographics in many developed countries. In
Chapter 4, we address a study that explored the viability of rehiring employees who had
left. Such employees, called boomerangs, may leave an organization for several reasons
that may strongly influence their willingness to return to it. And in Chapter 6, we explore
a study that investigates how closely CEOs attend to media assessments of their actions.
Using a large database of 745 large acquisitions undertaken by S&P 500 firms, researchers
find that CEOs pay attention to media evaluations of acquisitions. However, the extent to
which they are future focused or past focused influences whether and how they learn from
the media.
Reflecting on Career Implications. We provide insights that are closely aligned with and
directed to three distinct issues faced by our readers: Prepare them for a job interview
(e.g., industry analysis), help them with current employers or their career in general, or
help them find potential employers and decide where to work. We believe this will be very
valuable to students’ professional development.
Consistent chapter format and features to reinforce learning. We have included several
features in each chapter to add value and create an enhanced learning experience. First,
each chapter begins with an overview and a list of key learning objectives. Second, as
previously noted, the opening case describes a situation in which a company’s
performance eroded because of a lack of proper application of strategy concepts. Third,
at the end of each chapter we offer four different types of questions/exercises that should
help students assess their understanding and application of material:
1. Summary review questions
2. Experiential exercises
3. Application questions and exercises
4. Ethics questions
Given the centrality of online systems to business today, each chapter contains at least one
exercise that allows students to explore the use of the internet in implementing a firm’s
strategy.
Key terms. Approximately a dozen key terms per chapter are identified in the margins of
the pages. This addition was made in response to reviewer feedback and improves
students’ understanding of core strategy concepts.
Clear articulation and illustration of key concepts. Key strategy concepts are introduced
clearly and concisely and are followed by timely and interesting examples from business
practice. Concepts include value-chain analysis, the resource-based view of the firm,
Porter’s five forces model, competitive advantage, boundaryless organizational designs,
digital strategies, corporate governance, ethics, data analytics, and entrepreneurship.
Extensive use of sidebars. We include 54 sidebars (about four per chapter) called Page xiii
Strategy Spotlights. The Strategy Spotlights not only illustrate key points but also
increase the readability and appeal of new strategy concepts.
Integrative themes. The text provides a solid grounding in ethics, globalization,
environmental sustainability, and technology. These topics are central themes throughout
the book and form the basis for many of the Strategy Spotlights.
Implications of concepts for small businesses. Many of the key concepts are applied to
startup firms and smaller businesses, which is particularly important since many students
have professional plans to work in such firms.
Not just a product, but an entire package. Strategic Management features the best chapter
teaching notes available today. Rather than merely summarizing the key points in each
chapter, we focus on value-added material to enhance the teaching (and learning)
experience. Each chapter includes dozens of questions to spur discussion, teaching tips,
in-class group exercises, and about a dozen detailed boxed examples from business
practice to provide further illustrations of key concepts.
TEACHING RESOURCES
Instructor’s Manual (IM)
Prepared by the textbook authors with valued input from our strategy colleagues, the
accompanying IM contains summary/objectives, lecture/discussion outlines, discussion
questions, extra examples not included in the text, teaching tips, reflecting on career
implications, experiential exercises, and more.
Test Bank
Revised by Christine Pence of the University of California, Riverside, the test bank contains
more than 1,000 true/false, multiple-choice, and essay questions. It is tagged with learning
objectives as well as Bloom’s Taxonomy and AACSB criteria.
Assurance of Learning. Assurance of Learning is an important element of many
accreditation standards. The Eleventh Edition is designed specifically to support your
Assurance of Learning initiatives. Each chapter in the book begins with a numbered list
of the learning objectives that appear throughout the chapter. Every test bank question is
also linked to one of these objectives, in addition to level of difficulty, topic area, Bloom’s
Taxonomy level, and AACSB skill area. Test Builder, an easy-to-use, cloud-based test bank
software, can search the test bank by these and other categories, providing an engine for
targeted Assurance of Learning analysis and assessment.
AACSB Statement. McGraw Hill is a proud corporate member of AACSB International.
Understanding the importance and value of AACSB accreditation, the Eleventh Edition
has sought to recognize the curricula guidelines detailed in the AACSB standards for
business accreditation by connecting selected questions in Dess 11e and the test bank to
the general knowledge and skill guidelines found in the AACSB standards. The statements
contained in this new edition are provided only as a guide for the users of this text. The
AACSB leaves content coverage and assessment in the purview of individual schools, the
mission of the school, and the faculty. While this new edition and the teaching package
make no claim of any specific AACSB qualification or evaluation, we have labeled
selected questions according to the six general knowledge and skills areas. Page xiv
Test Builder. We provide a comprehensive bank of test questions in a
computerized test bank powered by Test Builder, a cloud-based tool that enables
instructors to format tests that can be printed or administered in an LMS. Available in
Connect, Test Builder offers a modern, streamlined interface for easy content
configuration that matches course needs, without requiring a download. Test Builder
allows you to:
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PowerPoint Presentation
Prepared by Pauline Assenza of Western Connecticut State University and Drake Mullens of
Tarleton State University, more than 400 slides incorporate an outline of the chapters, tied
to learning objectives. Also included are instructor notes, multiple-choice questions that can
be used as Classroom Performance System (CPS) questions, and additional examples
outside the text to promote class discussion.
The Business Strategy Game and GLO-BUS Online Simulations

Both allow teams of students to manage companies in a head-to-head contest for global
market leadership. These simulations give students the immediate opportunity to
experiment with various strategy options and to gain proficiency in applying the concepts
and tools they have been reading about in the chapters. To find out more or to register,
please visit www.bsg-online.com or www.glo-bus.com.
Page xv
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ACKNOWLEDGMENTS
Strategic Management represents far more than just the joint efforts of the four co-authors.
Rather, it is the product of the collaborative input of many people. Some of these individuals
are academic colleagues, others are the outstanding team of professionals at McGraw Hill,
and still others are those who are closest to us—our families. It is time to express our sincere
gratitude.
First, we’d like to acknowledge the dedicated instructors who have graciously provided their
insights since the inception of the text. Their input has been very helpful in both pointing
out errors in the manuscript and suggesting areas that needed further development as
additional topics. We sincerely believe the incorporation of their ideas has been critical to
improving the final product. These professionals and their affiliations are:
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THE PRESIDENT: Defendant Sauckel told us all about this
already, didn’t he?
DR. SERVATIUS: Yes.
THE PRESIDENT: Then there is no need to go into it with
another witness.
DR. SERVATIUS: Yes, Mr. President.
[Turning to the witness.] Do you know Speer’s position?
TIMM: Yes.
DR. SERVATIUS: What was Speer’s position in relation to
Sauckel and vice versa? Could Speer give orders to Sauckel in
particular?
TIMM: Speer was Plenipotentiary General for Armament while
Sauckel was Plenipotentiary General for the Allocation of Labor, and
Speer held the point of view that he, as Armament Minister, should
have decisive authority in all matters pertaining to the production of
armaments, that is raw materials, coal and consequently also the
allocation of labor.
DR. SERVATIUS: Could Speer give Sauckel orders and
instructions, or did he actually give them?
TIMM: Yes, as a matter of form. As I have just said, the question
was not quite clear, and the two conceptions were opposed. In reality
there was always a certain tension between the two men because
the Armament Ministry wanted more or less to claim the power to
issue instructions. This tension was generally cleared up through
talks, or the exchange of letters between the two men. Sometimes it
led to what one might call “agreement conferences,” headed by
Reichsminister Lammers, as he was at that time.
DR. SERVATIUS: What was the result of these conferences,
these agreement conferences?
TIMM: These conferences led to agreements which, as far as I
remember, were several times taken down in writing, and in my
opinion they led to an increasingly strong influence by the Armament
Ministry on questions concerning the allocation of labor.
DR. SERVATIUS: I have no more questions to put to this
witness.
THE PRESIDENT: Does any other counsel want to ask any
more questions?
DR. HANS FLÄCHSNER (Counsel for Defendant Speer):
Witness, in connection with your last statement, I should like to ask
one question. You have testified to tension between the Defendants
Sauckel and Speer because Speer claimed the right to give
instructions. Do I understand you correctly if I assume that the
tension arose from the fact that Sauckel energetically disputed this
right to issue instructions?
TIMM: As I wanted to express in my last answer, the difficulties
consisted in the fact that Speer, as Plenipotentiary General for
Armaments said: “I must have control of all the things which belong
to actual manufacture. So it is essential for me as regards the
direction of labor allocation...”
DR. FLÄCHSNER: I understood that, Witness; my question is
only, did this tension arise from the fact that Sauckel emphatically
refused to recognize this right to issue instructions which you say
was assumed by Speer?
TIMM: As Plenipotentiary General for the Allocation of Labor
Sauckel felt himself competent and responsible for all questions
concerning it.
DR. FLÄCHSNER: With regard to the demands of the
Armament Ministry which he did not feel he could consider justified,
did Sauckel not hold the point of view that he was responsible only to
the Führer?
TIMM: I do not remember anything so definite. He was
Plenipotentiary General for...
THE PRESIDENT: Surely this is very far removed from anything
we have got to deal with. He says that the tension was cleared up by
conferences. What more is there to discuss?
DR. FLÄCHSNER: That was the last question I wanted to ask
the witness.
Witness, you spoke of conferences which are supposed to have
taken place with Minister Lammers. In the minutes of the session of
11 July 1944 and of 4 January 1944, which have been previously
submitted here, there is no mention at all of such differences. I would
be grateful to you, if you could tell me what session with Lammers
you have in mind?
TIMM: Unfortunately, I cannot give the dates of the sessions
exactly. I know only that the Plenipotentiary General for the
Allocation of Labor several times wished to report these
circumstances to the Führer, and that the two men, as far as I can
remember, agreed that these questions should be discussed with the
Führer. Then, however, in order to avoid always taking things to the
Führer they agreed to have matters talked over with Reichsminister
Lammers.
DR. FLÄCHSNER: You cannot give any details about that?
TIMM: Only if—I remember, for example, that the question of the
blocked industries in France was discussed.
DR. FLÄCHSNER: Very well.
THE PRESIDENT: Does the Prosecution wish to cross-examine
the witness?
M. HERZOG: Witness, were you a member of the National
Socialist Party?
TIMM: Yes.
M. HERZOG: From what date?
TIMM: In 1933 I applied for admission. My application was at
first refused, and as far as I remember it was approved in 1934 or
1935.
M. HERZOG: Were you a member of the SA?
TIMM: I was a member of the SA for a short time. I left the SA
when proceedings for my expulsion were instituted against me in the
SA, and I resigned.
M. HERZOG: Were you a member of the SS?
TIMM: No.
M. HERZOG: What were your functions up to the time you
entered Sauckel’s office?
TIMM: I was employed in that branch of the Reich Ministry of
Labor which had the employment agency, the office for vocational
guidance, and the training agency.
M. HERZOG: When did you first meet Sauckel?
TIMM: As far as I can remember, I saw Sauckel for the first time
when he visited State Secretary Syrup in the Reich Ministry of Labor,
and the individual officials were invited to meet him.
M. HERZOG: At what time did this take place?
TIMM: I cannot give the date exactly. I believe it was about a
few weeks after the appointment of Sauckel as Plenipotentiary
General for the Allocation of Labor.
M. HERZOG: What was your position at the time when Sauckel
was appointed Plenipotentiary General for the Allocation of Labor?
TIMM: I was in the department for employment and
unemployment relief—the employment department...
M. HERZOG: And at the end, what was your position?
TIMM: At that time I was a Ministerialrat in the Reich Ministry of
Labor.
M. HERZOG: Will you tell me where Sauckel’s offices were in
Berlin?
TIMM: I did not understand the question.
M. HERZOG: Will you tell me where Sauckel’s offices were in
Berlin?
TIMM: In Berlin, Sauckel himself worked in Thuringia House,
while the special sections made available by the Reich Ministry of
Labor were in the building of the Reich Ministry of Labor at
Saarlandstrasse 96, and some, after a part of the building had been
destroyed, were in alternative quarters near Berlin.
M. HERZOG: Thank you. The offices at Saarlandstrasse 96
therefore came under Sauckel’s administration? Is that right?
TIMM: The office at Saarlandstrasse 96 was not a new office; it
was the Reich Ministry of Labor. The two sections had been made
available by a Führer decree to carry out the tasks of the GBA.
M. HERZOG: A document headed “Delegate for the Four Year
Plan, Plenipotentiary General for the Allocation of Labor, Berlin SW
11, Saarlandstrasse 96” therefore comes from Sauckel’s office?
TIMM: I did not quite understand.
M. HERZOG: A document which has the following heading:
“Delegate for the Four Year Plan, Plenipotentiary General for the
Allocation of Labor...”
THE PRESIDENT: Why not show him the document?
M. HERZOG: I show you Document Number L-61, which was
submitted to the Tribunal in the course of the last few sessions. This
document bears, as you see, the following heading at the top on the
left: “The Delegate for the Four Year Plan, the Plenipotentiary
General for the Allocation of Labor.” On the top in the right-hand
corner, “Berlin SW 11, Saarlandstrasse 96.” It is dated 26 November
1942, and comes, therefore, from Sauckel’s offices. Is that right?
TIMM: This document comes from the GBA, therefore from
Sauckel’s office.
M. HERZOG: Thank you. Did you represent Sauckel at the
conferences of the Central Planning Board for the Four Year Plan?
TIMM: I either represented him, or I went with the GBA to take
part in the sessions. Not always, but frequently.
M. HERZOG: When you represented him there, you received
instructions before going there, did you not?
TIMM: When we had to go to larger and more important
conferences, we were informed by Thuringia House that there were
to be sessions, and we received our instructions as to how we were
to represent the GBA at these sessions.
M. HERZOG: And when you came back from these meetings,
you gave Sauckel a report on them, did you not?
TIMM: After the sessions we either reported the results of the
conference to him personally, or through his personal advisers.
M. HERZOG: Sauckel then had to take the responsibility for the
declarations you made at the various meetings? Is that right?
TIMM: As an official, it was always my duty to make sure when I
made reports in a session and to ascertain...
M. HERZOG: That is not what I asked. Will you answer my
question? You received instructions before the conferences began.
You reported to Sauckel afterwards what was discussed at these
conferences. Consequently Sauckel was responsible for what was
discussed there, was he not?
TIMM: If I might be allowed to explain about this...
THE PRESIDENT: Is not that really a matter of law, not a matter
of evidence?
M. HERZOG: Yes, of course, Mr. President.
[Turning to the witness.] You declared a short while ago that the
conversations at which you had been present in Paris were of a
friendly nature. Do you remember taking part in the conference of 12
January 1943?
TIMM: At the moment I cannot remember just from the date
whether I took part, but I could tell from the subject of the discussion
whether I was present or not.
M. HERZOG: I have already submitted Document Number F-
809 to the Tribunal. It contains the minutes of this conference. In the
course of the conference, Laval, among other things, said to
Sauckel:
“It is no longer a matter of a policy of collaboration; it is
rather, on the French side, a policy of sacrifice, and on the
German side a policy of coercion...
“We cannot take any political measure without everywhere
coming up against some German authority which has
substituted itself in our place.
“I cannot guarantee measures which I do not take myself...
“It is not possible for me to be a mere agent for German
measures of coercion.”
Do you think that those are friendly remarks?
TIMM: I did not understand one word. “Do you believe that
those...”?
M. HERZOG: “...friendly remarks.” You said that these
conversations were friendly. I have given you an extract from the
contents of these conversations. Do you still say that they were
friendly?
TIMM: I can only confirm the spirit of the negotiations in which I
took part. I do not recognize these statements in the form you give
them to me.
M. HERZOG: If you had known them, would you still have said
that they were friendly conversations?
THE PRESIDENT: He was not there. He just said that he did not
know about it. We can judge for ourselves whether the tone of it is
friendly.
M. HERZOG: Witness, you stated earlier that you had no
knowledge of forced deportations.
TIMM: I said that I knew of no forced deportations under the
authority of the GBA; and I do not know of any deportations.
M. HERZOG: Do you remember a conference held on 15 and
16 July 1944 at Wartburg, which you attended, and at which
Sauckel, a number of chiefs of Gau labor offices, and people who
worked with Sauckel were also gathered?
TIMM: At Wartburg there was a conference of the presidents of
the Gau labor offices. I was there for that conference.
M. HERZOG: Do you remember having spoken there?
TIMM: Yes.
M. HERZOG: Do you remember the statements you made about
recruiting methods?
TIMM: I do not recall that so well; no.
M. HERZOG: I will now show you Document Number F-810,
which I submitted to the Tribunal under the Exhibit Number RF-1507.
The Tribunal will find the extract I want to submit to the witness on
Page 10.
You were speaking of the conferences which the Plenipotentiary
General for Allocation of Labor was having with the Wehrmacht
about its co-operation in compulsory recruiting, and you said: “The
Führer has approved the use of measures of coercion to the fullest
extent.”
Do you deny that you knew that workers were being recruited
for forced deportations?
TIMM: I ask for a moment’s time. I have not yet found the place.
It was not shown me before.
These are notes made by some one present, presumably the
Military Commander in Paris. I have not my statements on this
question at hand, but I should imagine that the GBA, in view of the
difficult...
M. HERZOG: Will you please look at Page 8, Paragraph IV?
TIMM: Page 8, yes.
M. HERZOG: Under Paragraph IV, on Page 8:
“As regards the employment of European labor and the
problems, methods, and means for the same, Timm made
the following remarks: 1) Northern Europe; 2) Southeast; 3)
Italy; 4) France.”
Then we come to the passage about which I am asking you for
an explanation, because you made this statement. Will you answer
that? Do you still deny your knowledge of the fact that these
deportations were forced?
TIMM: I have no intention of denying anything. I can only say
that Sauckel probably had powers from the Führer to use all
reasonable means to speed up the procurement of workers.
Measures were introduced and carried out in France which,
even if they were approved by Laval, the Premier at the time, might
nevertheless be termed compulsory.
M. HERZOG: Thank you. I have one last question to ask you. In
this quotation you say, “The Führer has approved....” If the Führer
approved something, it means, that something was suggested to
him. Is that not a fact?
TIMM: As far as I can remember, Gauleiter Sauckel always
reported the results of his talks in Paris to the Führer. It is possible
that he reported to the Führer the question of recruiting methods
which he had discussed with Laval; and it was customary for him, as
I have already said in my testimony, always to make sure of the
Führer’s approval, so that he did not work against the Führer’s ideas.
M. HERZOG: Thank you. I have no more questions.
DR. SERVATIUS: Witness, the document which was last
submitted to you, L-61, from Saarlandstrasse, is not in the original,
but it contains the words: “Signed, Sauckel.” The Defendant Sauckel
has informed me that it is possible he did not sign it himself, but that
he may have been informed, in a general way only, that there were
letters about one thing and another—routine office correspondence
—and he might have given authority for them to be signed. Is that
possible?
TIMM: It was like this; the departments in Saarlandstrasse...
THE PRESIDENT: Dr. Servatius, did Sauckel state that in
evidence, or are you telling us simply what he said to you? Do you
remember?
DR. SERVATIUS: I cannot say exactly whether he stated that
here.
THE PRESIDENT: Go on then.
DR. SERVATIUS: [Turning to the witness.] Answer the question.
TIMM: Yes. As Sauckel continued to exercise his functions as
Gauleiter in Weimar, it sometimes happened that things did not
reach him. The sections in Saarlandstrasse submitted their drafts to
the personal adviser in Thuringia House, and it is quite possible—as
I know from my own knowledge of conditions—that the contents of
the drafts were transmitted by telephone, and that the personal
advisers were authorized to sign the name of the Plenipotentiary
General.
DR. SERVATIUS: Was the mail so extensive that he did not take
exact cognizance of individual letters?
TIMM: That is hard for me to judge.
DR. SERVATIUS: That is enough. One more question: Führer—
Sauckel—Speer. Is it true that the Defendant Sauckel told you that
the Führer had ordered him to fulfill all Speer’s demands?
TIMM: I do not know whether exactly such a statement was
made.
DR. SERVATIUS: We have shown you the document in which
Laval complains about the conduct of the German authorities. Did
this complaint refer to Sauckel’s activities, or was it not that he had
told Sauckel of these complaints and was thanking him personally
for his attitude?
TIMM: I recall from the talks with Laval, that Laval repeatedly
expressed his gratitude to Sauckel for having put into effect
measures and means for facilitating matters which he had
suggested. Laval attached special importance—to use his own
expression—to putting the climate and the atmosphere in order, and
to having talks with Hitler himself as soon as possible; and he asked
Sauckel to pave the way for him. As far as I know, Sauckel did
actually arrange for talks of this kind and Laval thanked him for doing
so.
DR. SERVATIUS: I have no more questions for this witness.
THE TRIBUNAL (Mr. Biddle): The job of the GBA was to get
workmen to replace the men who had been taken into the Army out
of industry. That was largely your work, was it not?
TIMM: The task of the GBA was much more comprehensive, as
previously all the tasks...
THE TRIBUNAL (Mr. Biddle): Well, I understand, but that was
part of your work, was it not?
TIMM: Yes.
THE TRIBUNAL (Mr. Biddle): All right. Now, you were therefore
told beforehand the number of people that the Army was taking out
of industry, weren’t you, so you could make up your estimates?
TIMM: The numbers were adjusted in the Central Planning
Board. It was precisely the task of the Central Planning Board, that
the plans made in the OKW...
THE TRIBUNAL (Mr. Biddle): Wait a minute. I don’t care who
examined the figures, but your organization certainly had knowledge
of the needs of the Army, of the number of people the Army was
taking out of industry. You had to have that information, had you not?
TIMM: The number of men to be drafted was reported to the
Central Planning Board.
THE TRIBUNAL (Mr. Biddle): All right, reported to the Central
Planning Board. Now then, they were taking people out of industry
also who were not needed for the Army, weren’t they? I mean Jews.
They were taking Jewish people out of industry, were they not?
Sauckel said yesterday that Jewish people were being taken out of
industry. You admit that, don’t you?
TIMM: Yes. Jews were eliminated from industry.
THE TRIBUNAL (Mr. Biddle): All right; and I suppose the Central
Planning Board was given the number of Jewish people that were
taken out of industry, were they not?
TIMM: I do not know that. In the conferences at which I was
present...
THE TRIBUNAL (Mr. Biddle): Do you not assume that that must
have been the case, if they had to find the number of replacements.
It must have been so, mustn’t it?
TIMM: I cannot judge as to that because I learned only the total
number of men to be drafted, independently of the Jewish question. I
will not venture an opinion; I do not know.
THE TRIBUNAL (Mr. Biddle): Do you not know that Himmler and
the SS told the Central Planning Board the number of Jews that
were being taken out of industry for whom replacements were
needed? You know that as a fact, don’t you?
TIMM: No.
THE TRIBUNAL (Mr. Biddle): You do not?
TIMM: No. I know only that we received certain statements from
the Reichsführer SS that people were being taken out of industry,
and owing to the objections of the Plenipotentiary General, who had
to supply the replacements—I remember that this measure was
partly withdrawn.
THE TRIBUNAL (Mr. Biddle): And you do know that one of the
duties of the Reichsführer SS was to withdraw Jews from industry?
You know that?
TIMM: I know from statements in reports that Jews were to be
withdrawn from industry.
THE TRIBUNAL (Mr. Biddle): That is all.
THE PRESIDENT: The witness may retire and the Tribunal will
adjourn.
[A recess was taken.]
[The witness Hildebrandt took the stand.]

THE PRESIDENT: Will you state your full name.
HUBERT HILDEBRANDT (Witness): Hubert Hildebrandt.
THE PRESIDENT: Will you repeat this oath after me: I swear by
God—the Almighty and Omniscient—that I will speak the pure truth
—and will withhold and add nothing.
[The witness repeated the oath.]
THE PRESIDENT: You may sit down.
DR. SERVATIUS: Witness, you were working in the office of
Sauckel, is that correct?
HILDEBRANDT: Yes.
DR. SERVATIUS: You were subordinate to Timm. What was
your special field?
HILDEBRANDT: In the Reich Ministry of Labor from 1930 I dealt
with questions concerning labor for the iron and metal industry, the
chemical industry, and the textile industry. After 1940 I also dealt with
questions concerning workers in the West.
DR. SERVATIUS: Regional questions in the West?
HILDEBRANDT: Yes; in France, Belgium, and Holland; some of
those questions.
DR. SERVATIUS: You must remember to pause before you
answer. Did you have any general idea about what happened in
Sauckel’s office?
HILDEBRANDT: No; I did not.
DR. SERVATIUS: But you participated in the staff conferences?
HILDEBRANDT: Yes; I was present at most of those.
DR. SERVATIUS: And in that way you found out, to a certain
extent, about what happened in other offices?
HILDEBRANDT: Yes.
DR. SERVATIUS: I want to ask you especially about conditions
in France. What was the position of the Plenipotentiary General for
the Allocation of Labor in France?
HILDEBRANDT: The Plenipotentiary General for the Allocation
of Labor in France, just as in other occupied countries, had
appointed special deputies who transmitted his wishes, and helped
to carry out these wishes and these tasks. The organization of the
entire labor strength from the occupied western territories remained
in the hands of the German military or civil administrative offices
there.
DR. SERVATIUS? So he did not have an organization of his
own?
HILDEBRANDT: The first deputy in France tried to establish an
organization of his own, but after a short time he met with the
opposition of the German administrative offices, and the offices
which he had established in the meantime were taken over by the
military commander.
DR. SERVATIUS: What was the position of the military
commander?
HILDEBRANDT: The military commander was and remained
responsible for the entire allocation of the labor in his district, and
also for the labor sent from his district to Germany.
DR. SERVATIUS: What was the position of the German
Embassy?
HILDEBRANDT: The German Embassy took the leading part in
all negotiations which were to be carried out by the Plenipotentiary
General or his deputies, with French Government offices.
DR. SERVATIUS: What was the position of the French
Government as regards the allocation of labor?
HILDEBRANDT: The French Government made agreements
with the Plenipotentiary General concerning the carrying out of his
programs, and ordered its own offices to carry out certain tasks,
especially when compulsory labor was introduced in France. It
published the necessary decrees and gave the necessary directives
to the subordinate offices.
DR. SERVATIUS: And who had the executive power to recruit
labor? Was that done by the French or the Germans?
HILDEBRANDT: One must distinguish between two periods.
When it was still a question of recruiting volunteers, until the fall of
1942 these volunteers could report to German offices as well as to
French offices; and also to recruiting offices which had been
established by German firms, and some by branches of the
Wehrmacht. After the introduction of compulsory labor, the
administrative executive for the carrying out of the decrees rested
solely with the French authorities.
DR. SERVATIUS: And what happened when somebody did not
report?
HILDEBRANDT: Then a first summons to appear was received
from the French authorities, and then repeated summonses, and if
these proved to be unsuccessful the French authorities called in the
French police.
DR. SERVATIUS: Were those who did not come brought before
the courts?
HILDEBRANDT: I assume that that may have happened
sometimes. I do not know for certain.
DR. SERVATIUS: German or French courts?
HILDEBRANDT: French courts, according to French regulations.
DR. SERVATIUS: What would be your estimate of the number of
voluntary workers who came from France to Germany?
HILDEBRANDT: The number of voluntary workers from France,
until the middle of 1942—but I can only give approximate figures
from memory...
DR. SERVATIUS: Please, just the approximate figure.
HILDEBRANDT: Something over 200,000. After the compulsory
labor decree had been introduced in the course of 1942, there were
still voluntary recruitments as well on a fairly large scale. The
number of volunteers was, at times, considerably larger than the
number of conscripts, so that altogether more than half of all the
labor recruited in France consisted of volunteers. It is noticeable that
women were only recruited if they volunteered. There was no
compulsory service for them. With regard to the compulsory labor
assignments moreover, it must be pointed out that a number of them
were only formal. In reality these people had come voluntarily, but for
economic reasons, or out of consideration for their relatives and
friends in their home towns, they attached importance to being
conscripted. We had compulsory labor assignments which were only
put on an official basis afterwards. Such requests reached the
German labor offices especially during the last months before the
end of the war; and the Foreign Office requested the Plenipotentiary
General to approve such demands, and that was done.
DR. SERVATIUS: Did you hear anything in your department
about recruiting measures such as the surrounding of churches,
cinemas, and similar places in France?
HILDEBRANDT: No; I do not know of any such recruiting
measure. I know that in France, as well as in Belgium, identity
papers were controlled among members of the age groups which
had been called up to register.
DR. SERVATIUS: You were also probably in Paris, and you
spoke to the German authorities there; is that right?
HILDEBRANDT: Yes. Every time I was in Paris I took the
opportunity to talk to members of the offices about current events.
DR. SERVATIUS: Did they not tell you about things which must
have surprised you?
HILDEBRANDT: With each major task we carried out we had
some difficulties, of course, and certain excesses. Once it was
reported to me, among other things, that there were impossible
conditions in the “Pépinière”—a camp, a kind of transit camp for
people who had to leave. These conditions were reported
immediately to the Town Major of Paris who remedied matters. Then
there were irregularities in the recruiting in Marseille, where
recruiting agents used blackmail. This was also stopped
immediately.
Beyond that, a fairly large number of individual cases were
brought to me. These were minor difficulties about vacations,
salaries, and so forth, which I transmitted each time to the competent
offices for further action.
DR. SERVATIUS: Was it part of your official duties to follow
these things up?
HILDEBRANDT: As far as they came within my sphere, I took
the necessary steps immediately. As far as it was the business of
other departments I immediately transferred them to those
departments for further attention.
DR. SERVATIUS: Witness, I did not ask what you did, but
whether it was your official duty to look after these things.
HILDEBRANDT: The general problems of recruiting and
statistical checking of programs came within my field of duty.
Questions of housing, pay, and transport were dealt with by other
departments. Of course, when I found out about bad conditions it
was my duty to investigate them at once, if only in the interests of
further recruiting.
We considered it of the greatest importance that every abuse
should be stopped immediately, because it was only in this way that
further recruiting of volunteers could be guaranteed. Labor
conscription was therefore looked on as a last resort.
DR. SERVATIUS: Witness, I would like to know whether it was
your official duty, or your moral duty to look after these things?
HILDEBRANDT: In this case it was my moral duty as well as my
official duty.
DR. SERVATIUS: As regards the way transports were effected, I
have one question. Mention has been made of irregularities on
transports. That is why I would like you to tell us what steps you took
to have the transports that came from France supervised and
directed. Can you describe that briefly?
HILDEBRANDT: A special department was created in the office
of the military commander in France for the carrying out of
transports. For each man who went to Germany, it was already
settled to what firm he was to be sent. The recruiting was effected on
the basis of planned contracts and definite working conditions, so
that it was known what route could be chosen for the journey.
Transports were assembled to include as many as possible, so that
a definite number of workers would go in the same direction and to
the same firm.
DR. SERVATIUS: Witness, these details are of less interest to
me than the question of how you conducted these transports and
kept a check on them when something irregular happened on the
way.
HILDEBRANDT: In giving a few details, I only wanted to indicate
that there was a detailed check made of every person intended for
Germany. For each transport there was an exact list of the persons
and of the firms to which they were sent. The transports were given
guides who brought them to their destination, and there they were
turned over to the presidents of the regional labor offices whose duty
it was to take further care of them.
DR. SERVATIUS: I should like to put a concrete case to you. A
case has been reported here of a transport train which was left in the
Saar district, and when it was opened, after a few days, most of the
people had been frozen to death. Did you have control of such
trains? Should that have been reported to you? Could that train have
been sent upon your orders? How do you explain that?
HILDEBRANDT: Such an incident would have become known to
us immediately. As the coming of transports was reported
beforehand to the presidents of the regional labor offices, we were
informed immediately when they did not arrive. That happened
frequently, namely, when difficulties arose because of some
emergency on the way, and a transport was held up—for instance, in
the last days of the war, when traffic obstructions caused by bomb
damage had to be cleared away, and so on. We could then
immediately have inquiries made concerning the transports, which
was always done. I know nothing of the case which you have just
mentioned.
DR. SERVATIUS: Witness, you must speak more slowly. The
interpreters cannot possibly follow.
Will you state your opinion as to the incident, which I have
described, of the train with the people who froze to death in the Saar
district.
HILDEBRANDT: The incident could not possibly have occurred
on transports of labor recruits. The transports were well prepared.
DR. SERVATIUS: You have said that before.
HILDEBRANDT: Yes.
DR. SERVATIUS: How do you explain then, the case of that
transport?
HILDEBRANDT: I learned for the first time through the press
during the last few months that the SS also conducted transports to
Germany, and that conditions such as you have just described are
said to have been present.
DR. SERVATIUS: Witness, were you present during the
negotiations between Sauckel and Laval?
HILDEBRANDT: Yes, I was frequently present.
DR. SERVATIUS: In what kind of atmosphere were these
negotiations conducted?
HILDEBRANDT: These negotiations were conducted in a
friendly manner; but occasionally, especially when promises on the
part of the French Government had not been kept, quite violent
disputes occurred. Any real difficulties, however, did not as a rule
arise during these negotiations. Arrangements were made
concerning the number of people who were to be sent to Germany.
As a matter of principle, Laval was always willing to put manpower at
the disposal of Germany.
DR. SERVATIUS: And what, in particular, were the relations
between Laval and Sauckel? Did Laval speak well of Sauckel or not?
HILDEBRANDT: M. Laval expressed his gratitude from time to
time for the way in which things had been made easier for France,
too. For instance, as regards the status of French prisoners of war,
the permission given to the wives of French workmen to visit their
husbands, and the taking over of welfare work for the relatives of the
French workmen in Germany. All these things, as I have said, took
the form of agreements whereby one party put labor at the disposal
of the other party, and that party in return gave back manpower or
granted other advantages. Laval certainly expressed repeatedly his
urgent wish to do more for Germany if he could only be given
political advantages for it. Therefore, he asked the Plenipotentiary
General repeatedly to make it possible for him to have discussions
with the Führer in order to create a favorable atmosphere in France
for further efforts.
DR. SERVATIUS: Did these friendly relations prevail until the
end?
HILDEBRANDT: Until the last negotiation, which I think took
place at the end of 1944.
DR. SERVATIUS: Mr. President, I believe the question of relève
and “transformation” has been clarified sufficiently, so that I need not
question the witness about it again.
[Turning to the witness.] Witness, in what manner did the
negotiations with the German military commander take place? Did
Sauckel give orders there? Was he the highest authority, or was it
the military commander?
HILDEBRANDT: The negotiations were never carried out in the
form of a transmission of orders. The Plenipotentiary General
described the situation in Germany and what needs...
DR. SERVATIUS: Witness, you can be very brief.
HILDEBRANDT: I only want to say the following: Of course, the
military commander, as was the case with the civil administration in
Holland, was more interested in receiving orders to be filled than in
sending manpower to Germany, and that led to conflict. The
authorities, however, had to be convinced in each instance that
manpower must be sent to Germany—for agricultural work, for
example, which could not be done in Holland, and also for a number
of branches of the German armaments industry.
DR. SERVATIUS: Witness, a few questions now concerning
Belgium and Northern France: Was the position of Sauckel as
regards the chief authorities there the same as in France on the
whole; and was everything conducted similarly, or were there any
differences?
HILDEBRANDT: No, the conditions were the same as in France,
only that the deputies of the Plenipotentiary General were, from the
very beginning, incorporated into the military administration.
DR. SERVATIUS: Did you receive any reports or discover
anything yourself about irregularities in that territory?
HILDEBRANDT: Yes. There were isolated cases of irregularities.
For instance, I was informed one day that reprisals were to be taken
against relatives of members of age groups who had not appeared
when they were called up. We stopped that immediately by
discussing the matter with the representatives of the military
commander.
DR. SERVATIUS: And how did Sauckel negotiate with the
military commander there?
HILDEBRANDT: He also told him what he wanted. Von
Falkenhausen was, of course, also interested in the first place in
having orders for the German armaments industry carried out in
Belgium; but it was also agreed that manpower should be sent to
Germany. He certainly made frequent efforts to protect students,
school children, and members of younger age groups.
DR. SERVATIUS: Witness, I will show you the minutes of an
interrogation of General Von Falkenhausen on 27 November 1945. I
want you to look at a few sentences. If you take Page 2, you will find
there in the middle of the page, in answer to the question: “Is the
witness in a position...”
THE PRESIDENT: What is the number of the document?
DR. SERVATIUS: It is Document Number RF-15.
[Turning to the witness.] It is the following question:
“Is the witness in a position to define to us the limitations of
his powers and the competence of the administration for the
Allocation of Labor?”
Answer by General Von Falkenhausen:
“Up to a certain time there was a labor office in my territory
which was concerned with the recruiting of voluntary
workers. I cannot remember the exact date any longer—it
may have been in the fall of 1942—when the labor office
was put under Sauckel; and from then on I had only to carry
out the orders I received from him.”
Is this position of the military commander in relation to Sauckel
correct?
HILDEBRANDT: It is not quite correct in several points. In
Belgium there was not just one labor office, but a number of labor

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To my wonderful wife, Gaelen, and my children, Megan and AJ

To my family—Helaine, Rachel, and Jacob

To my wife, Pla, and daughters, Miriam and Layla

about the authors

Welcome to the Eleventh Edition of Strategic

Karen Ford-Eickhoff, University of North Carolina-Charlotte

Steven Dionne, Georgia State University

Robert W. Reich, Tarleton State University

John Sanchez, University of North Carolina-Greensboro

Renata Mayrhofer, Concordia University St. Paul

Robert Dintino, Rowan University

Omer Gokalp, Suffolk University

Alex Makarevich, California State University-East Bay

Isaac Wanasika, University of Northern Colorado

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The Business Strategy Game and GLO-BUS Online Simulations

COURSE DESIGN AND DELIVERY RESOURCES

The Reviewer Hall of Fame

Anne Kelly Hoel Page xvi

Christine Cope Pence

David Robinson Page xvii

Indiana State University–Terre Haute

Dr. Bindu Arya

Dr. Jaemin Kim

Dr. Jill E. Novak

Dr. Patricia Beckenholdt

Dr. Susan Hansen

Eric Shaunn Mattingly

Francis D. (Doug) Tuggle

Hee Jin Woo

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Marta Szabo White

Mehmet Erdem Genc

Michael E. Dobbs Page xx

Arkansas State University

Muuka, Gerry Nkombo

Ross A. Wirth Page xxi

[The witness Hildebrandt took the stand.]

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