They seem to view Universities as a business proposal: "How much do we invest? How much do we get out of it?", which it shouldn't be. Take this quote: "If colleges were businesses, they would be ripe for hostile takeovers, complete with serious cost-cutting and painful reorganisations.”.
My feeling is that the person who said it is thinking of streamlining it, removing subjects which bring little profit, and increasing those with profit. So out goes "geography" but also "gender studies", and instead more money is put into "pharmacy", "genetics", "economics and MBA".
The result would be great from a business perspective, but that's what companies and business are for. If there's plenty of money many companies will be investigating in those subjects just as well.
Instead Universities should also help the student become full rounded, more knowledgable even of things that may not bring money, and should let professors study subjects despite there being no monetary advantage.
Where has the passion for knowledge gone? Let the student have a place to get knowledge, and the professor have a place to expand it.