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The execute command is used to call a command on a specific entity.

From Gamepedia:

Syntax:

execute <entity> <x> <y> <z> <command …>

An example would be if you wanted to strike all zombies with lightning you could use:

execute @e[type=Zombie] ~ ~ ~ summon LightningBolt

So as you can see you can use it to spawn things near entities.

Good luck!