Difference between information systems (is) and information

Task

Write a business report based on the following:

Sheltex is the merging of two very popular petrol service stations in Australia. The merging of these two very large chains has caused a problem. Their traditional proximity to each other (previously for competition) is now a non-issue. Senior management has finalised on the following decisions: 
Service stations nearby each other (defined as 1km apart) will be converted to :
OPTION 1: One station selling certain fuels such as E10 and RON95 and the other station selling the other fuel: RON98 and Diesel.
OPTION 2: One station to continue selling the entire range of fuel and the other station converting solely to be a small supermarket, taking advantage of the short term parking space available (where pumps were previously) 
To prevent customer confusion, only one option will be selected throughout Australia. No hybrid solution will be adopted such as Option 1 in New South Wales and Option 2 in Victoria.
Write a business report outlining the above case, stating assumptions you make. Provide critique into the management decisions substantiating with reference to literature. In your report, make the difference between Information Systems (IS) and Information Technology (IT) issues and how it will affect customer choice, continued patronage, etc. [Note that other service stations still exist in the market.] Suggest how to attract new customers (from competitors) into these new stores and any other new business opportunities that may arise with such a set up (a car maintenance facility, tyre and battery change, short term child care and other small businesses). All these should be substantiated with references to IS and IT literature.
Optional: You may also take on the issue of stations that are further than 1km apart and how you would operate these stations.