I want to write in the space (which I have marked in red) beside the picture in Microsoft Word. However, the cursor is just stuck at the bottom, beside the picture. Is there anyway I can utilize the space beside the picture?
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You can adjust how the text wraps around the picture.
More info here: Wrap text in Word 2007
While I prefer @techie007 answer, I discovered "Click and Type" also work.
If it doesn't work, make sure the feature is enabled. In Word 2007/2010, Click File > Options > Advanced and Check "Enable click and type" and OK. See more in Troubleshoot Click and Type