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In this video tutorial for Office 2013, the presenter demonstrates how to create a letterhead, save it as a template, and compose a business letter. The process begins with opening a blank Word document, which is saved as "letterhead.docx." The letterhead is designed to include the business name, address, email, and an image. The presenter types "business 216 team" as the business name and shows how to insert a picture by navigating to the "Insert" tab and selecting "online pictures," searching for "graduation," and choosing a suitable image. Finally, resizing the image is discussed to complete the letterhead setup.