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The tutorial discusses how to convert a single-column list of company names, their industry, and sector into a standard three-column table in Excel. The alignment of text indicates the categorization: if left-aligned, it represents the sector; one space from the left indicates the industry; and two spaces from the left signify the company. To achieve the table conversion, the tutorial recommends using Visual Basic to create a custom function named "indent level." The process begins by accessing the Visual Basic editor (via Alt + F11), creating a module in the sheet, and entering the necessary public function code. This enables the extraction of company, industry, and sector into separate columns.