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The video tutorial addresses how to extract subsets of data from a master sheet into separate sheets for divisions, salespersons, or products while ensuring updates in the master sheet automatically reflect in those sheets. Previously, the recommendation was to use pivot tables instead of complex array formulas. A lesser-known feature within pivot tables allows automatic extraction of source data into separate sheets. The tutorial begins with demonstrating the pivot table method using example data of orders by salesperson. It highlights the importance of formatting data in a table, using the keyboard shortcut Ctrl T to create a structured format, with the table name appearing as "Table 3" in the table design tab.