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In this Office 2013 tutorial video, the presenter explains how to create a letterhead, save it as a template, and draft a business letter. Starting with a blank Word document named "letterhead.docx," the presenter demonstrates entering the business name and additional details such as the address and email at the top of the document. To personalize the letterhead, a graphic is inserted by navigating to the "Insert" tab and selecting "Online Pictures." The presenter types "graduation" in the search and selects an image, resizing it for the letterhead. This process ensures the letterhead is readily available for future letters.