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In this video tutorial, the presenter explains how to arrange items in a drop-down list alphabetically, even if the original list is unsorted. The tutorial starts with a list of office items and demonstrates three types of drop-down lists. Although the original list is in random order, the presenter reveals a simple technique involving formulas. Specifically, they utilize a ranking formula to determine the alphabetical position of each item, then create a new sorted list using a match formula to organize the items alphabetically. This method allows for a neat presentation of the items without manually sorting the original list.