Read the case study below and answer the questions which follow: Bon Voyage Wineries (BVW) kgosi Malan, general manager

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Read the case study below and answer the questions which follow:
Bon Voyage Wineries (BVW)
kgosi Malan, general manager of Bon Voyage Wineries ( BVW) in the Western Cape region of South Africa, knew that the Board of Directors had some tough decisions on their agenda. with unfavorable international trading conditions, the sales of BVW took a serious turn in the wrong direction. for the five years preceding the current unfavorable trading conditions, BVW benefited from a strong growth in wine exports to the UK and Europe, to the extent that by the beginning of 2015 just over 60 % of the value of their sales were generated by exports to these markets.
however, with the current conditions, their exports to these markets were almost halved over the previous 18 months. Also, the local demand for wine is dwindling. The raise in sin tax on wine that the minister of finance announced in his last budget speech did not exactly make life easier for BVW who already had to cut deep into reserves to keep the company afloat.
Despite knowing that the Board had to come up with an innovative strategy for coping with this awkward situation, the board's decision took Kgosi by surprise. The CEO of BVW, Sarie Wlliams, came out of the Board meeting a few minutes ago and asked kgosi, with a wry smile: Do you want to hear the
good news or the bad news first? she informed him that the Board has decided to downsize the workforce by 40%, while at the same time giving the entire executive management team a 20% raise in salary to motivate them to stick with the company during this challenging period. Kgosi Malan was not sure whether to laugh or cry. obviously the 20% raise in salary would bring some much-needed relief as he was also feeling the pinch of rising inflation, but as general manager of BVW he would also be responsible for overseeing the downsizing of the company.
Kgosi has always taken pride in the good staff relations of BVW. In the seven years that he had been with the company, he has developed good relationships with the shop-stewards of both the unions who were represented in the company. Sitting behind his desk, engulfed in a whirlpool of emotions, he looked up to the BVW Business Principles in a frame on his desk.
Question 1
1.1 Describe the moral dilemma faced by the general manager of Bon Voyage Wineries (BVW). Consider the importance of shared values and an agreed-on process for dealing with crisis or change. ( 10 marks)
1.2 Assuming that the Board of Bon Voyage Wineries (BVW) overlooked the ethical implications of their decision, explain how ethical tests can be applied to solve the ethical dilemma? (40 marks)
Question 2
The first principle of King IV states that: " The governing body should lead ethically and effectively " ( IoDSA, 2016) : 43.
Discuss the importance of leadership in providing a sense of direction by including the characteristics of a good leader. ( 50 marks)