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The tutorial demonstrates how to add a picture background to a rectangle shape in PowerPoint and resize it to fit the slide. The next step involves using a circle to create a hole in the rectangle for placing another element. To center the circle on the slide, the align center and align middle options are used. To cut a hole in the rectangle using the circle, a hidden tool in PowerPoint 2010 needs to be displayed by customizing the quick access toolbar through the PowerPoint options dialog box.