Every story is grounded in a particular time and place. An ambiance is created through existing social conditions, atmosphere, weather and physical surroundings. The writer envelopes his characters in a mood of lightness or gloom. Setting provides a picture in the reader's imagination which carries him to a place he's never been or provides new insights into somewhere familiar. It supplies the background upon which characters play out their roles.
Plot is the story, the sequential telling of what happens in the order it happens. Plot usually involves a conflict, situation, or problem which story characters endeavor to resolve. Conflict can be internal, where the protagonist vies with her own demons or external, when she is set upon by outside influences. As a story is presented, conflicts are revealed and developed to where the reader is caught up in wondering what the outcome will be.
Characters in a story are the people or animals who carry it along. They're much more than simple physical depictions. They possess thoughts, feelings, opinions, and personalities. They interact in a certain way and these interactions determine what occurs and why. Generally, one character is central to the plot and interacts with supporting or antagonistic secondary players. The best short stories present complex characters who undergo some kind of change for better or worse by the time the story ends.
Writers have thoughts or ideas to impart. Stories often present opinions or viewpoints offered to readers and, whether or not they are sympathetic toward these efforts depends on how well setting, plot, and characters are developed. Theme reflects what authors want us to ponder or believe and is developed through unfolding events and their effect on the story's characters. The title gives a hint as to what an author wants to say and his use of figures of speech such as symbol, metaphor, humor and irony develop the message.
Point of view is the angle from which the author chooses to tell a tale. A writer may narrate through the eyes of the protagonist or other characters. A story might be told in the third person through the eyes of a neutral observer who describes the main players and what they do or say but isn't privy to their deepest thoughts. An outside character may tell the story, showing only what the characters or author want known and leaving interpretation to the reader.