Sometimes people install windows without fully reinstating the manufacturer's drivers and can't work out why they have not got various power options - just a general observation.
If you have all your manufacturers chipset drivers installed, windows 7 power configuration for Power buttons and Lid is found deep in the Advanced Power Options of the Edit Power Plan Settings, from the Control Panel applet, Power Options.
Another way is to take yourself to the Control Panel>All Control Panel Items>Power Options>System Settings screen.
Each power plan can be configured to behave differently, so you may have to do this for both battery and plugged in options. It is fairly straightforward with options Sleep, Shut down and Do nothing.
If you set shutdown or standby from the start menu, the do nothing option is for you.