I don't see the jdk\bin in your path, that may explain why it's not recognised as a command. You should have in your path something like:
C:\Program Files\Java\jdk1.7.0_02\bin
So you have to edit your path. To do so:
Go to Control Panel then Environment Variables and insert the path of your jdk/bin to the path.
Path is an environment variable. Environment variables are the variables containing the values related to the current environment, like the OS. One of the most famous environment variable is the Path. It contains the directories in which executable programs are located on the machine. Therefore when using a command line, the system will check the path for that command line.
Now imagine your executable program is not in the Path, you would have to type in the whole path to your executable file every time (something like C:/.../.../.../mycommand
) and you kind of want to avoid that. If your executable program is in the path then you don't have to worry about and you can simply type in mycommand
and it will be found.
For more explanations on that I would advise not to ask SO. Such a question probably belongs to SuperUser but this very short explanation should probably help.